Hi @ode, This is quite an excellent summary. I’d like to make some comments on the attack on Smart Contracts, and I hope it further adds to this body of knowledge.
Numerous attacks on smart contracts, like the ones mentioned in this study, have taken place and cost a lot of money. However, the Parity Wallet hack and the DAO attack received the most attention.
A small group of Ethereum society members launched the DAO in May 2016. Genesis DAO was the name given to the beginning. The DAO was a smart contract that anyone could use to convert DAO tokens into the ether. This method of exchange enabled the collection of roughly $150M, giving the DAO a sizable crowdfund. DAO token holders were allowed to vote on proposals and receive rewards so long as the vote produced a profit. However, the DAO contract had serious flaws that made it possible for attackers to make money.
Users can form decentralized digital agreements using smart contract technologies without the need for a third party. Health, business management, shareholder agreements, and insurance have all been drawn to smart contract technology.
However, as this technology advances, it attracts the attention of potential attackers, resulting in a number of severe exploitations.
Can smart contracts be hacked?
Yes. There are numerous known vulnerabilities that can be exploited by malicious actors to attack the protocol and steal data and funds. As a result, it is critical to ensure the high security of the protocol and smart contracts, adhere to industry best practices, and conduct regular audits.
What tools are available to help me secure smart contracts?
Mythril, Slither, Scribble, Echidna, and Vertigo are some of the most effective tools for ensuring high smart contract security.
What are the best smart contract security practices?
The following are best practices for smart contract security:
Complete a full unit test.
Audit the security of smart contracts.
Ensure the code’s uniqueness.
Use multisig logic to prevent unauthorized access to private keys.
Hire skilled DeFi developers.
Launch a bug bounty to solicit assistance with bugs and errors from your protocol community.
Maintain complete and up-to-date documentation.
How can smart contracts be made more secure?
Hiring reputable auditing firms and conducting at least two smart contract audits is the best way to ensure high security of your protocol. This way, you can check your contracts for bugs and other vulnerabilities and get detailed recommendations on how to fix them.
Furthermore, to improve smart contract security, you should always adhere to best industry practices and employ cutting-edge tools.
Conclusion
Users can form decentralized digital agreements using smart contract technologies without the need for a third party. Health, business management, shareholder agreements, and insurance have all been drawn to smart contract technology. However, as this technology advances, it attracts the attention of potential attackers, resulting in a number of severe exploitations.