Pioneering Blockchain Security Company Presents Annual Report on Blockchain Security for Year 2022
Singapore, January 30, 2023 – Global pioneering blockchain security company Fairyproof released their annual Review of Blockchain Security in 2022 (Hereafter referred to as “Report”). The Report showed data gathered through the year 2022 and presented a total of 378 prominent, publicly reported blockchain security incidents along with statistics and analysis based on targets who have suffered, and their root causes.
The Report revealed that the entire blockchain ecosystem had witnessed an accumulated loss of US$2.52 billion, highlighting attacks against cross-chain bridges becoming prominent issues accounting for about 40% (US$1.01 billion) of the total losses. The report also accounted for the remaining losses to be caused by cyberattacks against smart contracts (US$571.34 million), leaked private keys (US$999.79 million), and attacks against layer 2 solutions (US$35 million).
Fairyproof CEO Mr. Tan Yuefei noted his awareness that the attacks on cross-chain bridges and its losses in 2022 far surpassed those of 2021. “No doubt, this is a big concern for the entire crypto space. Many project teams are exploring new solutions to improve the security of existing cross-chain bridges. I would gather that MPC technology would be a mature, sustainable base to develop such solutions.”.
Tan proceeded to deliberate on the future of the blockchain ecosystem. “Although most attacks were on cross-chain bridges through 2022, there is a shift in focus to Zero Knowledge (zk) related applications. This would mean that we would soon witness zk-related attacks. That said, I am proud to say that Fairyproof is well-equipped for the rising demand for zk-related audits and are making good progress in developing security solutions for these applications.”
The Report also presented findings on attacks leveraging on different attack types ranked in increasing order involving Price Manipulations, Flash-Loans, and exploiting Logic Vulnerabilities. This led to a conclusion for both Blockchain Developers and Users to practice the following:
- Blockchain Developers: Ensure security solutions for cross-chain bridges to be capable of handling off-chain activities safely and securely and increase awareness of security for layer 2 solutions in light of emerging attack trends against layer 2 platforms.
- Users: Thoroughly investigate security conditions for cross-chain bridges before interacting with them, pay attention to security of UIs in dApps, and check for audit reports for projects.
“The overall crypto market is experiencing a bear market. However, our findings show that cyberattacks stay relentless. Everyone should focus on keeping their projects and assets safe.” Mr Tan concluded.
To read the annual Review of Blockchain Security in 2022, click here.
Fairyproof is a pioneering blockchain security company established in 2021 with the slogan “Make IT a Safer Place”. They have been actively developing blockchain security solutions and Ethereum standards and have meaningfully contributed to established Web3.0 projects like Ethereum, BNB Smart Chain, and HECO.
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