With the passage of time, the cryptocurrency industry has continued to be targeted by hackers. This has led many market analysts and experts to question the security of the crypto-verse.
Even some of the major and most senior market analysts have started voicing their concerns over the growing number of cybercrime cases.
Kim Grauer’s Comments
The director of research at Chainalsysis, a blockchain intelligence firm Kim Grauer recently spoke his mind about the cryptocurrency hacks.
He commented on the current cybersecurity situation of the cryptocurrency industry and the growing number of hack attempts.
He stated that it has become very important for the cryptocurrency industry to ensure that the number of crypto hacks is reduced.
Cryptocurrency firms need to strengthen their cybersecurity systems to protect their protocols. Achieving this would ensure that the crypto industry thrives without any hindrances in the way.
DeFi is targeted the Most
Grauer stated that their firm has been closely monitoring the cyber hacks taking place in the crypto-verse. He stated that the year 2021 would be outpaced by the year 2022’s cyber hacks.
He pointed out that the decentralized finance (DeFi) sector is the most targeted sector in the entire crypto-verse by cybercriminals.
Now, the cryptocurrency industry, the especially decentralized finance sector is facing an alarming situation. The industry has to deal with cyber hacks as swiftly as possible so they can become safe for users.
Otherwise, the investors have already started to lose their faith and if the security of the industry is not ensured, people would continue losing faith in it.
This would lead to an all-out downfall of the cryptocurrency industry. People would simply stop investing money into decentralized finance platforms, which would lead to the industry’s downfall.
Centralized Platforms vs. Decentralized Platforms
While commenting on the decentralized platforms, Grauer talked about the centralized platforms.
He stated that centralized platforms were also targeted by hackers in the past.
Until 2018, it was the centralized platforms that were facing a vast number of cyber hacks. However, the situation has continued changing for centralized platforms and exchanges.
He stated that centralized exchanges and platforms have continued building more resilience against cyber hacks.
On the other hand, the decentralized exchanges are moving in the opposite direction. The decentralized platforms are becoming highly vulnerable to cyber hacks.
It is mainly due to the open-source code nature of the decentralized platforms that have made them highly vulnerable to exploits.
So far, the hackers have successfully stolen over $2.3 billion in the form of digital assets within DeFi.
If the DeFi platforms do not deal with the situation swiftly, it may turn out to be catastrophic for the industry.