Blockchain has transformed many industries, from healthcare to real estate to banking. But despite the “unhackable” hype, flaws in Blockchain technology undeniably weaken its goals of bringing greater security, transparency and privacy to the world.To get more news about blockchain knowledge, you can visit wikifx.com official website.
Between January and November 2022, hackers stole $4.3 billion worth of cryptocurrency — marking a 37% increase from 2021. It was the worst year for crypto fraud, and the outlook still appears bleak.
For many years, experts have touted zero-knowledge cryptography as a potential game-changer for Blockchain applications. In 2023, that theory will be put to the test — but will it be enough?
How the Crypto Industry Crumbled in 2022
Blockchain technology aims to solve problems associated with digital currencies. The immutable ledger of transactions is connected by digital cryptography and shared publicly across a decentralized network of computers around the world. It’s supposed to be uncrackable.
That’s the theory. But in reality, Blockchain is an imperfect system. Despite the system’s promise of virtually impenetrable security, hackers routinely steal millions from users of decentralized finance (DeFi) platforms through phishing scams, routing attacks and endpoint vulnerabilities.
Ironically, cyber criminals defraud lenders and investors by using the very anonymity that offered investors more control over their finances. The Federal Trade Commission (FTC) reports that cryptocurrency accounts for one out of every four dollars lost to online scams — more than any other payment method.
While Blockchain involves much more than digital coins, the technology’s flaws in the cryptocurrency market don’t inspire public confidence. In 2022, three of the biggest Blockchain hacks in history happened.
In February 2022, hackers swooped in after an upgrade to the Wormhole’s GitHub repository wasn’t deployed to the live project. The $320 million theft included $47 million worth of Solana (SOL) — a major rival to Ethereum in the DeFi and NFT space.
A Record-Breaking Hack Hits Ronin Network
The largest cryptocurrency hack in history happened in March 2022. Hackers stole $625 million worth of Ethereum and USDC stablecoin from the gaming-focused Ronin network. U.S. officials say a North Korean state-backed hacking collective, Lazarus Group, was responsible.
The Long-Awaited Binance Hack
As the world’s largest cryptocurrency exchange by daily trading volume, the crypto industry feared a hack on Binance for years. In October 2022, that day finally came when hackers exploited a vulnerability to swipe 2 million BNB tokens worth $570 million.
Blockchain’s Darkest Hour: The Collapse of FTX
While Binance is the biggest exchange, FTX was arguably the most important in terms of bringing cryptocurrency and Blockchain technologies to mainstream consciousness.
Alameda Research founder Sam Bankman-Fried was at the helm of a relentless marketing machine that promoted FTX as the safe, easy way to start crypto investing. Flashy TV ads and celebrity endorsements captured the trust — and money — of millions. But in November 2022, the $8 billion empire imploded.
The unraveling began with revelations that Alameda’s balance sheet was made up of the exchange’s own token, FTT. When Binance co-founder and CEO CZ Zhao announced he was selling over $500 million worth of FTT, the market panicked into a mass sell-off.
Within days, FTT’s value plummeted, Bankman-Fried resigned and the company filed for bankruptcy. To rub salt in the wounds, hackers hit the exchange the following day, compromising a further $415 million.
Blockchain has transformed many industries, from healthcare to real estate to banking. But despite the “unhackable” hype, flaws in Blockchain technology undeniably weaken its goals of bringing greater security, transparency and privacy to the world.To get more news about blockchain knowledge, you can visit wikifx.com official website.
Between January and November 2022, hackers stole $4.3 billion worth of cryptocurrency — marking a 37% increase from 2021. It was the worst year for crypto fraud, and the outlook still appears bleak.
For many years, experts have touted zero-knowledge cryptography as a potential game-changer for Blockchain applications. In 2023, that theory will be put to the test — but will it be enough?
How the Crypto Industry Crumbled in 2022
Blockchain technology aims to solve problems associated with digital currencies. The immutable ledger of transactions is connected by digital cryptography and shared publicly across a decentralized network of computers around the world. It’s supposed to be uncrackable.
That’s the theory. But in reality, Blockchain is an imperfect system. Despite the system’s promise of virtually impenetrable security, hackers routinely steal millions from users of decentralized finance (DeFi) platforms through phishing scams, routing attacks and endpoint vulnerabilities.
Ironically, cyber criminals defraud lenders and investors by using the very anonymity that offered investors more control over their finances. The Federal Trade Commission (FTC) reports that cryptocurrency accounts for one out of every four dollars lost to online scams — more than any other payment method.
While Blockchain involves much more than digital coins, the technology’s flaws in the cryptocurrency market don’t inspire public confidence. In 2022, three of the biggest Blockchain hacks in history happened.
In February 2022, hackers swooped in after an upgrade to the Wormhole’s GitHub repository wasn’t deployed to the live project. The $320 million theft included $47 million worth of Solana (SOL) — a major rival to Ethereum in the DeFi and NFT space.
A Record-Breaking Hack Hits Ronin Network
The largest cryptocurrency hack in history happened in March 2022. Hackers stole $625 million worth of Ethereum and USDC stablecoin from the gaming-focused Ronin network. U.S. officials say a North Korean state-backed hacking collective, Lazarus Group, was responsible.
The Long-Awaited Binance Hack
As the world’s largest cryptocurrency exchange by daily trading volume, the crypto industry feared a hack on Binance for years. In October 2022, that day finally came when hackers exploited a vulnerability to swipe 2 million BNB tokens worth $570 million.
Blockchain’s Darkest Hour: The Collapse of FTX
While Binance is the biggest exchange, FTX was arguably the most important in terms of bringing cryptocurrency and Blockchain technologies to mainstream consciousness.
Alameda Research founder Sam Bankman-Fried was at the helm of a relentless marketing machine that promoted FTX as the safe, easy way to start crypto investing. Flashy TV ads and celebrity endorsements captured the trust — and money — of millions. But in November 2022, the $8 billion empire imploded.
The unraveling began with revelations that Alameda’s balance sheet was made up of the exchange’s own token, FTT. When Binance co-founder and CEO CZ Zhao announced he was selling over $500 million worth of FTT, the market panicked into a mass sell-off.
Within days, FTT’s value plummeted, Bankman-Fried resigned and the company filed for bankruptcy. To rub salt in the wounds, hackers hit the exchange the following day, compromising a further $415 million.