Web3.0 takes a hit as hackers take over the market.
Web3.0 is still under development and hopes to conquer the Internet world. Amid the crypto market turmoil that has already slowed Web3 adaptation across the world, the rise of hackers is seriously causing a huge dent. Technology is taking a big hit as hackers show no mercy as they suck every possible penny out of the market.
According to the report, Blockchain projects lost an estimated $2 billion to hacks and exploits in the first six months of 2022. According to a report submitted by Blockchain auditing and security firm Certik, the 2022 hack figure for the first six months exceeded the hack figure for all of 2021. About $308 million was stolen from the market in 27 Flash Loan attacks in the second quarter and about $14 million was stolen from the market. were lost in the first trimester.
Flash loan concept!
Flash loans are a type of decentralized finance (DeFi) that gives borrowers quick access to very large amounts of cryptocurrency. These loans have terms that are enforced by smart contracts, and the entire borrowing and repayment process happens almost immediately.
The three main processes involved in Flash Loan are –
- The user borrows money.
- The use of borrowed money.
- Repayment of borrowed money.
According to The Verge, if flash loans are used fraudulently, they can be used to influence the value of a particular currency on exchanges or buy all of a project’s governance tokens and vote to withdraw all funds, such as this happened to Beanstalk in April.
In the cryptocurrency industry, a coin toss occurs when a development team abruptly abandons a project and sells or eliminates all of its cash. According to reports, approximately $37.46 million was lost to “rug draws” in the second quarter, down at least 16.5% from the previous quarter.
Claims of other reports.
This week, another study by Immunefi, a well-known bug bounty platform, claimed that the global cryptocurrency industry lost at least $670 million in the April-June quarter. (Q2), with hacks and scams accounting for 97% of losses.
According to information provided by Immunefi, “The majority of these assets were lost to four separate projects, Beanstalk known as the decentralized stablecoin system, Harmony Horizon Bridge, Mirror Protocol and Fei Protocol.”