DeFi’s Vulnerability against Hacking Risks
One of the major problems decentralized finance (DeFi) hasn’t been able to solve is its vulnerability against hacks. This is the reason why DeFi’s growth has been slowed down which was otherwise thriving.
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DeFi is often regarded as an easily accessible means of obtaining finance which is even better, more efficient, quicker, and cheaper than conventional finance.
However, this very sector has been the first target of cybercriminals whose primary objective is to steal from the digital asset industry.
The majority of crypto investors take the risk of engaging with decentralized exchanges because they want to control their assets by themselves.
Considering that the crypto industry is still in its infancy, hence, the security protocols in the industry are certainly not up to the mark.
However, there is an entity called ‘Hackless’ which is up on the task of improving crypto security protocols. Hackless mainly offers advanced security protocols for DeFi networks, projects, and associated individuals.
Its security protocols allow projects to avoid several types of network exploits, breaches, and hack attacks. Furthermore, such protocols also enable users to migrate their funds from an under-attack DeFi project into secure wallets.
Presently Notorious ‘Sandwich Attack”
One of the most common and lethal hack attacks executed upon DeFi protocols by cybercriminals is a ‘sandwich attack’.
TarLogic’s latest report notes that from May 2020 to April 2022, DeFi protocols were under sandwich attack 457,691 times.
The biggest loss caused by a single sandwich attack occurred in May 2021. In that attack, the attackers stole 56 units of Ethereum i.e. equivalent to $200,000 at the relevant time.
The attack was so lethal that it took less than a second for attackers to execute two transactions in successfully stealing 56 Ether.
What Is Sandwich Attack?
This type of hack attack describes a tactic that can be employed front/back over crypto purchase transactions stemming from decentralized exchanges.
For successfully executing the sandwich attacks, cybercriminals closely monitor mempool for earmarking suitable transactions.
When there is an opportunity, the cybercriminals then purchase digital currencies and then subsequently sell them immediately. This way, such criminals are able to hide their traces and stay out of trouble.
Protection Offered By Hackless
What Hackless is offering is protection to individual and institutional users of DeFi protocols against sandwich attacks.
Through these security standards, the users can fearlessly swap their digital funds/assets and execute transactions without being detected in mempools.
In simple words, a buyer enters into a transaction between the buyer and the miner. On the other hand, the exploiter would not be able to detect the transaction and hence safe transaction can be executed.
Hackless is offering this solution through a widget that is easily available on the official website of the security provider.
Interested persons are only required to establish a connection with the desired network, Metamask, and the targeted cryptocurrency. This connection will then link up users directly with private miners.
Anti-Sandwich By Hackless
More than $6 Billion was lost in 2022 alone at the hands of DeFi exploiters in hacking and scamming attempts. Most attacks were however executed while employing sandwich attack tactics.
In order to prevent such attacks, Hackless is now offering attack-prevention solutions at individual and institutional levels.
In this connection, the security provider has launched an improved security standard called “Anti-Sandwich by Hackless”.
Though fresh, the protocols have immediately been adopted by Ethereum as well as by the networks belonging to Binance Smart Chain.
The service provider is also offering digital monetary rewards to early and initial adopters. This way, the people interacting with the new protocol will be able to benefit from the reward system.
The more people join the protocol, the more safety there is going to be for them. This is because with more investments coming in favor of Hackless, it will be able to invest more towards advanced security.