Like many innovations, blockchain started as the supporting technology for a specific disruptive product: Bitcoin. Now, blockchain’s popularity has expanded across the cloud, growing into a promising mitigation technology for cybersecurity at large.
In today’s digital age, information is being stored and shared online. Almost all businesses and organizations rely on digital means to conduct transactions and record history. This dependence on ever-evolving cloud storage technology and online data transfers has brought lapses in security protocols that regularly expose sensitive information to malicious actors. Therefore, finding a reliable cybersecurity protocol that can handle the always-changing way society deals with big data is vital.
Throughout 2021, $1.3 billion dollars were lost to exploits and hacks of DeFi protocols across fifty different hacks. For an industry that prides itself on greater protection and that is angling for legitimacy and adoption, this is not a great look. These exploits drain funds from the wallets of the users whose participation in the platform is essential to continued innovation across the DeFi ecosystem. Despite 2021’s losses, there is still an overall decline in the share of market capitalization lost to exploits in 2020.
But there’s more to meaningful security than just encryption. DeFi is powered by smart contracts, which, although extremely powerful and efficient, introduce completely new risks and attack vectors. When smart contract platforms secure tens of billions of dollars’ worth of digital assets, a byte-sized error in the code can cause massive financial losses.
Effective security is not an afterthought or a hurdle to be cleared once. It’s an ongoing process that must be woven into the core of a product. Routine auditing and post-deployment monitoring combine static off-chain and dynamic on-chain analysis. The result is a comprehensive, end-to-end security solution that provides meaningful protection for the entire lifecycle of a platform.
Blockchain should be known for its powerful security and evergreen potential, not for the hacks and exploits that tarnish its stature. Meaningful security practices must be as prevalent and adopted in crypto as HTTPS is on the Internet. Routine auditing, continuous real-time monitoring, and an ongoing commitment to security from both users and developers should be a non-negotiable as the ecosystem evolves. Then, and perhaps only then, will blockchain technology be free to reach its full potential.
We present to you, “Top 10 Blockchain Solutions Providers - 2022.”