Blockchain Security Losses Decrease by 51%: Is the Industry Becoming More Mature?
With frequent reports of hacking incidents on the blockchain, many people have suffered significant losses of valuable assets. However, over the past year, the losses due to security incidents on the blockchain have decreased by more than half.
According to CertiK, a blockchain security company, their “Hack3d: The Web3 Security Report 2023” reveals that there were a total of 751 blockchain security incidents in 2023, resulting in a loss of $1.8 billion in digital assets. Although this amount is still significant, it is a significant decrease compared to the $3.7 billion lost in 2022, representing a 51% reduction.
Professor Ronghui Gu, co-founder of CertiK, stated in an interview with Cointelegraph that the data from 2023 indicates that blockchain security is moving in a positive direction. He mentioned that the increase in bug bounty platforms and other proactive security measures is a good thing for ensuring information security on the blockchain.
Professor Gu further added that the 51% decrease in overall losses may be attributed to the industry being in a bear market. The decline in cryptocurrency valuations, as well as the decrease in transaction frequency and volume, could be contributing factors. However, if the reduction in losses continues in 2024 and remains low even during a bull market, it would indicate that the Web3 industry is learning from past lessons.
The report by CertiK also highlights that Ethereum had the highest amount of losses, with over $686 million in digital assets lost. The most catastrophic method of attack was through “private key compromise.” Although there were only 47 instances of private key compromises in 2023, the total losses exceeded $880 million, with an average loss of $18.72 million per incident.
Among all the blockchains, Ethereum suffered the most significant losses, with a total loss of $686 million and an average loss of $3 million per incident. In addition, Binance Smart Chain (BNB Chain) recorded a staggering 387 security incidents, the highest among all blockchains. However, the total losses amounted to only $134 million, significantly lower than the losses on the Ethereum blockchain.
The report also emphasizes that the most significant losses occurred due to security vulnerabilities in cross-chain protocols, amounting to approximately $800 million. This demonstrates that cross-chain protocols remain the primary security pain point within the blockchain industry.
Sources:
Cointelegraph, CertiK Report
Proofread by: Gao Jingyuan