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HomeNewsFunds Lost Through Smart Contract Hacks in 2022 Stand at $2.7B, Representing a 1250% Jump Since 2020
Funds Lost Through Smart Contract Hacks in 2022 Stand at $2.7B, Representing a 1250% Jump Since 2020

Funds Lost Through Smart Contract Hacks in 2022 Stand at $2.7B, Representing a 1250% Jump Since 2020

Last updated 15th Dec 2022
Disclosure
  • Hackers are targeting smart contracts.
  • Despite its security standards, smart contracts are not hack proof.
  • Businesses and individuals should ensure that their contracts are secure and properly tested before they are used.

Smart contracts have become a major target for hackers, as they allow for the exchange of cryptographic assets without any central authority. The risk is exacerbated by their immutability—once a vulnerability is exploited, it’s too late. This makes smart contracts extremely vulnerable to malicious actors.

According to a recent report by BanklessTimes.com, in 2022, the total amount of funds lost to smart contract hacks is $2.7 billion- a 1250% increase from 2020.

Jonathan Merry, the CEO of BanklessTimes, spoke on the data

With the increasing popularity and use of smart contracts, it is no surprise that hackers are targeting them. These hacks can devastate the individuals and organizations involved and the whole ecosystem. We must learn from these hacks and put better security measures to protect against them. Otherwise, we could see an even bigger increase in the number of funds lost in the future.
BanklessTimes CEO Jonathan Merry

Securing Smart Contracts

Smart contracts are programs that run on the blockchain. Like any program, they can contain vulnerabilities that malicious actors can exploit. This makes it easier for hackers to steal funds from users, which is why the number of funds lost to smart contract hacks has been increasing.

One of the most important things to do when using smart contracts is to ensure they are thoroughly tested and audited. This allows for the correction of vulnerabilities and thus protects users.

Additionally, it is important to understand the legal ramifications of smart contracts and how to use them safely. With these steps, businesses can minimize the risk of falling victim to a smart contract hack.

Despite Security Features, Smart Contracts Are Not Hackproof

Smart contracts are self-executing contracts that are stored on the blockchain. And because they're stored on the blockchain, they're incredibly secure.

However, this doesn't mean that they're completely hack proof. Hackers can still exploit vulnerabilities in smart contracts, which can lead to the loss of funds and other assets.

So what can you do to protect yourself? Well, first of all, you need to be aware of the risks. Make sure you understand how smart contracts work and the potential risks involved. And secondly, you need to choose a reputable smart contract platform. There are several different platforms, so do your research and choose one with a good track record.

Finally, remember to keep your smart contract code secure. Just like any other code, it's susceptible to hacking.

Elizabeth Kerr

Elizabeth Kerr

Elizabeth is a financial content specialist from Manchester. Her specialities include cryptocurrency, data analysis and financial regulation.