No Safety in Numbers?

Two smoking colts and a pantyhose over the head: they used to rob banks with style in the Wild West.

When banks started using the Internet as their main infrastructure, the wild days of brazen robberies made quite a comeback, only with less shooting and more hacking.

And then, along came the brave new world of crypto.

And with it, came the first wave of crypto hacks. It is probably safe to assume that many of the hackers involved in cyberattacks against banks moved into the crypto space with its underdeveloped security and fresh, irresistible vulnerabilities.

Robbers vs. security is a never-ending arms race.

Locks and picklocks, face recognition and camouflage makeup, credit cards and ATM readers. But even with the robbers trying as hard as they can, it seems like they’re gradually losing that fight. Let's look at some statistics. In 2018, 6.1% of all robberies in the US were linked to banks. In 2020, mere two years later, the number was only 1.4%.

So what does that mean for the blockchain scene?

Millions of dollars drained just recently in a wallet hack. Numerous high-profile exploits of bridges, smart contracts, protocols and services. Is crypto inherently flawed? Is it doomed?

Mt. Gox: Version control? Never heard of it

Before Coinbase, Binance, and any other CEX, there was Mt. Gox. It was the only exchange where you could sell your Bitcoins, so it had a near-monopolistic place in the crypto world. Consequently, it had A LOT of Bitcoins. Before they all got drained.

KuCoin:

4 years later, another centralized exchange, and another gigantic hack: KuCoin, according to some experts, was hacked by the North Korean Lazarus Group. Only this time, hackers could not find an easy way in by exploiting a vulnerability in the code.

The industry evolves by learning from its own mistakes.

The exact same thing happened in the banking sector: there were hacks, money was lost, security got improved. And hey, look, the banks are still there.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
JFactory

JPool is a stake pool on the Solana blockchain network enabling safe, secure, high-yield rewards on your staked SOL.