xuanling11Crypto Paycheck
Photo by Mario Gogh on UnsplashEmployees will receive their paycheck in the period as a reward for their work. However, the employer wants to pay less to employees so that they can have maximum profits. The tension between working and anti-working has increased ever since. TL;DR Nobody wants to work unless they can pay fairly. Fiat payment may not be sustainable to satisfy what workers can contribute if the employer continues paying less and gaining more from profits. Employees will want thei...
xuanling11Defi Review #4: AAVE The Defi Lending Services
AAVE is a decentralized finance lending service before decentralized finance even existed. It is an innovation lending service in crypto and one of the first kind. However, the lending service may only restrict to the crypto community and it may expand into the traditional financial field later. TL;DR AAVE is a crypto lending financial service which to provides lending services to the crypto community. They focus on security and smart contract lending may be the future of financial services. ...
xuanling11Stablecoin Crisis
Stablecoin is in the crisis mode. The most reputable stablecoin USDC is depegged. It is all triggered by the traditional bank collapse - Silicon Valley Bank or SVB collapse. Why traditional bank collapse impacts crypto stablecoin? Let's sort this out and reveal how stablecoin operates. First, why SVB collapse? The short answer is overleveraged. SVB is one of the 20 largest commercial banking in the United States. Some even estimate the bank owned half of startup assets. Bank operated in ...
xuanling11Crypto Paycheck
Photo by Mario Gogh on UnsplashEmployees will receive their paycheck in the period as a reward for their work. However, the employer wants to pay less to employees so that they can have maximum profits. The tension between working and anti-working has increased ever since. TL;DR Nobody wants to work unless they can pay fairly. Fiat payment may not be sustainable to satisfy what workers can contribute if the employer continues paying less and gaining more from profits. Employees will want thei...
xuanling11Defi Review #4: AAVE The Defi Lending Services
AAVE is a decentralized finance lending service before decentralized finance even existed. It is an innovation lending service in crypto and one of the first kind. However, the lending service may only restrict to the crypto community and it may expand into the traditional financial field later. TL;DR AAVE is a crypto lending financial service which to provides lending services to the crypto community. They focus on security and smart contract lending may be the future of financial services. ...
xuanling11Stablecoin Crisis
Stablecoin is in the crisis mode. The most reputable stablecoin USDC is depegged. It is all triggered by the traditional bank collapse - Silicon Valley Bank or SVB collapse. Why traditional bank collapse impacts crypto stablecoin? Let's sort this out and reveal how stablecoin operates. First, why SVB collapse? The short answer is overleveraged. SVB is one of the 20 largest commercial banking in the United States. Some even estimate the bank owned half of startup assets. Bank operated in ...
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This article is sponsored by the MixPay Content Reward Program. MixPay is a decentralized crypto payment service platform built on Mixin Network. MixPay, Payment for Web3.
Security is one of the most important topics in Decentralized Finance.
Without the security, your fund is for others to grab 💸.
🔒 Crypto Security
Crypto itself is a component derivative from cryptography - a technique to secure communication in the presence of malicious third parties. It is prone to attacks from multiple aspects. Cryptocurrency Security Standard (CCSS) was introduced in 2014 to provide an open standard for protecting crypto operations that are separated by three levels of a security audit.
Level I is the most stringent security protection and Level III is the least stringent security protection.
The audit components include:
Key/seed generation
Wallet creation
Key storage
Key usage
Key compromise policy
Keyholder grant/revoke policies & procedures
Third-party security audits/pentests
Data sanitization policy
Proof of reserve
Audit logs
Even if you passed a level III audit does not guarantee your crypto to be safe.
👮 Defi Security
The core component of Defi is smart contracts. Only the problem with the smart contract is that it defeats the original design intent of cryptocurrency. Despite the benefit of the smart contract to bring more functionality to crypto, its capabilities as immutability have been significantly reduced.
A smart contract is a program to command how the blockchain behaves. It sets predetermined conditions for the program to be met to execute operations. The problem is that it opens the possibility for programmers to manipulate codes to reach their own goals.
Of course, we do not undermine benefits from smart contracts, we also need to be aware that such loopholes will exist for hackers to exploit.
In contrast to cryptography, that information will be hidden, some of the information will be exposed in smart contracts for hackers to manipulate. Also, hackers can gain access through predetermined privileges and gain the power to manipulate codes. That will diminish decentralization and increase centralization risks.
🈲 How to Prevent Hacking
One way is to conduct a smart contract audit. It is a crucial step for the Defi project to conduct an audit. Although an audit can not completely eliminate the possibility of hacking, it can uncover flaws to improve the chances to prevent hacking.
Another way is to create a Cefi like Defi. Implementing a central-like command can prevent hacking from executing through smart contracts and attack funds automatically without possible verification.
The third way is to go through a hackathon - a collective event that brings talents to work and helps increase system security. Similarly, submitting a bounty to reward Whitehats is another way to discover the vulnerability of the code.
🎍 Security at Yearn
Whitehat has submitted a report to prevent a possible exploit that can lead to a significant loss of user funds. Yearn was able to fix the vulnerability and report it to the public.
In Conclusion
Security is important in crypto and Defi. Continue improving security is a key to preventing hacking in the future.
This article is sponsored by the MixPay Content Reward Program. MixPay is a decentralized crypto payment service platform built on Mixin Network. MixPay, Payment for Web3.
Security is one of the most important topics in Decentralized Finance.
Without the security, your fund is for others to grab 💸.
🔒 Crypto Security
Crypto itself is a component derivative from cryptography - a technique to secure communication in the presence of malicious third parties. It is prone to attacks from multiple aspects. Cryptocurrency Security Standard (CCSS) was introduced in 2014 to provide an open standard for protecting crypto operations that are separated by three levels of a security audit.
Level I is the most stringent security protection and Level III is the least stringent security protection.
The audit components include:
Key/seed generation
Wallet creation
Key storage
Key usage
Key compromise policy
Keyholder grant/revoke policies & procedures
Third-party security audits/pentests
Data sanitization policy
Proof of reserve
Audit logs
Even if you passed a level III audit does not guarantee your crypto to be safe.
👮 Defi Security
The core component of Defi is smart contracts. Only the problem with the smart contract is that it defeats the original design intent of cryptocurrency. Despite the benefit of the smart contract to bring more functionality to crypto, its capabilities as immutability have been significantly reduced.
A smart contract is a program to command how the blockchain behaves. It sets predetermined conditions for the program to be met to execute operations. The problem is that it opens the possibility for programmers to manipulate codes to reach their own goals.
Of course, we do not undermine benefits from smart contracts, we also need to be aware that such loopholes will exist for hackers to exploit.
In contrast to cryptography, that information will be hidden, some of the information will be exposed in smart contracts for hackers to manipulate. Also, hackers can gain access through predetermined privileges and gain the power to manipulate codes. That will diminish decentralization and increase centralization risks.
🈲 How to Prevent Hacking
One way is to conduct a smart contract audit. It is a crucial step for the Defi project to conduct an audit. Although an audit can not completely eliminate the possibility of hacking, it can uncover flaws to improve the chances to prevent hacking.
Another way is to create a Cefi like Defi. Implementing a central-like command can prevent hacking from executing through smart contracts and attack funds automatically without possible verification.
The third way is to go through a hackathon - a collective event that brings talents to work and helps increase system security. Similarly, submitting a bounty to reward Whitehats is another way to discover the vulnerability of the code.
🎍 Security at Yearn
Whitehat has submitted a report to prevent a possible exploit that can lead to a significant loss of user funds. Yearn was able to fix the vulnerability and report it to the public.
In Conclusion
Security is important in crypto and Defi. Continue improving security is a key to preventing hacking in the future.
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