Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $2,17 trillion. Bitcoin continues to trade at around $62,300. Ethereum experiences no changes and stagnates at around $2,400. XRP is down by 2%, Solana by 1%, and Dogecoin by 3%. Almost all altcoins are trading in the red, with very few exceptions. The DeFi sector decreased the total value of protocols (TVL) to around…
6 Common Vulnerabilities In Smart Contracts
2.8 k views
Smart contracts are useful for peer-to-peer transactions in blockchains. They are also helpful for trade finance and insurance to improve claim processing, stock taking, and record keeping.
Although these blockchain applications are useful in various industries, they may not always be safe and prone to attacks. The effects of smart contract attacks are very devastating and can cause significant losses to a project’s investors.
This article will address various vulnerabilities in smart contracts, how they occur, and their effects on them. We will also highlight how to mitigate these smart contract vulnerabilities.
Common Smart Contract Vulnerabilities
Reentrancy Attacks
A reentrancy attack is any procedure that, in its execution, can be interrupted in the middle, reentered, and the previous and the latter functions continue to the end. Therefore, a reentrancy attack occurs when an untrusted external force, known as an attacker, repetitively calls its targets’ withdrawal function.
The contract does not automatically update the account balance and recurs the withdraw function until it is washed clean. The attacker manipulates the withdraw function and associates it with their smart contract that recursively withdraws the amounts. Reentrancy attacks completely drain ether from your smart contract and interfere with your contracts.
Reentrancy attacks can be mitigated by updating the contract before adding another contract. This vulnerability can also be avoided by understanding the difference between the call, transfer, and send functions since attackers only maximize those.
This smart contract vulnerability can also be mitigated by marking all untrusted functions and using a mutex. Mutex locks the contract on its state, with only the contract owner being able to edit.
Denial Of Service Attacks
A DOS attack is meant to stop the host’s services to the client. Untrusted external contracts also play a significant role in DOS attacks. DOS attack in ether occurs when transactions are stopped due to system failures. The attacker may overload the target computer with many requests that the target cannot handle and can’t serve its clients.
In September 2016, two DOS attacks were conducted on the Ether networks to slow down the processes. When a contract tries to do a refund, it reverts. When this happens, criminals can become leaders by ensuring that all transactions with them fail. DoS attacks slow down the operation of a contract. They also lead to system failure and chain transaction failures.
This vulnerability can be mitigated by avoiding making contracts with untrusted parties. DoS attacks can also be prevented using pull payments instead of push payments and software-defined networking to configure rules to block any DOS attacks.
Gas Limit
It’s the maximum amount a smart contract owner is willing to pay to process his/ her payments. If, at any point, they exceed the gas limit, the transaction fails. An attacker can take advantage of this by sending DOS attacks. This attack will stop a chain of other operations in line.
The main effect of gas limit vulnerability is slowing down all transactions. However, the gas limit vulnerability can be mitigated by setting higher limits to make faster processing of your transactions by miners.
Frontrunning
Frontrunning is overtaking an unconfirmed blockchain transaction. Frontrunning occurs due to the blockchain’s transparency property. Unconfirmed blockchain transactions are visible in the mempool, but only before the miner includes them in a block.
Transactions in mempool can be easily monitored by interested parties and can be overtaken by paying higher transaction fees. For developers to mitigate against frontrunning, they need to redesign the blockchain.
Integer Errors
Smart contracts generally express numbers as integers because they do not have floating-point support. Therefore, one must step down to small units when integers represent values in smart contracts. Stepping down to small units when using integers is vital to allow for accuracy.
Expressing integers in small units may cause the integers to overflow. When done wrongly, integer arithmetic may lead to a lack of precision. Developers can use safe math libraries to mitigate their code from this smart contract vulnerability.
Other Logic Bugs
Logic bug errors may result from simple typing errors, misunderstanding of the specification, or a programming mistake. These logic bugs negatively affect a smart contract’s functionality and security.
This smart contract vulnerability can be mitigated if you understand the contract’s specifications and have insight into the project’s intended functionality. The issue can also be corrected when you thoroughly understand the code base of the transaction.
Final Thoughts
These vulnerabilities have caused many smart contract projects to lose money. Constant loss of funds in smart contracts has made these projects aware of the need to take security seriously. Therefore, developers must employ vital tools to mitigate these smart contract vulnerabilities. In addition, the thorough auditing of smart contracts is also critical to help rectify any weaknesses.
Btc
Bitcoin
$62.547
price
price
0.84959%
price change
There are so many other vulnerabilities that could lead to a project’s downfall. However, knowing these common ones and how to prevent them can go a long way in helping developers ensure the success of their smart contract projects.
Previous
Crypto Staking, Delegating, and Validating Explained
Next
A Complete Guide to Cryptocurrency Merged Mining
Written by
Carol Robinson
@Carol
43 posts
More author posts
KuCoin Hacker Prepares To Launder the Looted $150M Via Uniswap
On 27th September, a twitter account named under the Breach reported that the Kucoin hacker just started laundering his $ 150 million. The tweet said that the hacker started swapping his $OCEAN for Ethereum through Uniswap, pulling the token’s price down by around 4%, in less than an hour. In response to @Under the Breach, another twitter user named Larry Cermak corrected the information given. Cermak pointed out that the hacker is yet to begin laundering his $ 150 million…
5 years ago
Difference between DeFi and Traditional Financial Systems
If you are a cryptocurrency enthusiast, you must have come across DeFi, space's current pet subject. As of 03 September 2023, it had locked assets with a total value of over $38.5 billion. It grew exponentially from an initial $677 million in early January 2020. But what is DeFi? How does it compare to traditional financial systems? Significantly, where can it find practical usage? This article will attempt to answer these questions. First, though, let us look at how it…
5 years ago
Everything You Should Know About Casa Security for Bitcoins
Cryptocurrency theft is a billion-dollar business. No, you're not reading this wrong. Still unbelieving? How about some stats to put this into perspective? According to CipherTrace, the world's first Blockchain Forensics team, by June of this year, crypto theft had hit the $ 1.36 Billion mark. At that rate, 2020 is going to be the second-costliest year in crypto theft after 2019. In that year, crypto heists topped $ 4.5 Billion. As a crypto trader or holder, there are many…
5 years ago
Can AI Out-space Cryptocurrencies in Banking Service Provision?
The banking sector is one of the biggest industries in the world. For instance, in the second quarter of 2020, the global banking industry's market cap was 5.3 trillion Euros. However, due to the regulation, scalability, and security issues, the sector can still not bank over 1.7 billion adults globally. A big reason for this lag was the reluctance of the traditional banking landscape to update their systems. Fortunately, the upsurge of fintech companies provided the competition that spurned technological advancement…
5 years ago
Why is Bitcoin a Perfect Long-term Investment Prospect?
The criteria for judging a good investment include the risk profile, time frame, and goals. How much of a trade-off are you willing to make for an uncertain outcome? We could define a perfect investment as giving you better returns than anything else. An investment that fits your needs maximizes your odds of getting the best returns. So is Bitcoin that investment for you? In just over a decade, the crypto world has grown exponentially. Bitcoin is the first crypto…
5 years ago
A Complete Guide to Crypto Lending DeFi Platforms
Traditional currency and banking systems feature several downsides as far as transacting is concerned. Cryptocurrencies present a decentralized alternative to deal with issues surrounding the two options. The introduction of DeFi was a step further in pushing the mass adoption of blockchain technology and digital currencies. DeFi lending is on the same track, trying to bridge the void between traditional banking and all users globally without intermediaries. Now, lenders and investors can deposit, loan out, or borrow currencies in or…
5 years ago
Publish your own article
Guest post article. Guaranteed publishing with just a few clicks
START PUBLISHING ADVERTISE WITH USBrowse categories
Explore trending topics in the crypto community right now.
Bitcoin
SEC Greenlights Multiple Bitcoin ETFs, Signaling Major Leap for Cryptocurrency Markets
The U.S. Securities and Exchange Commission (SEC) has made a landmark decision by approving 11 spot bitcoin exchange-traded funds (ETFs). This move represents a significant moment in the cryptocurrency industry, marking a shift towards greater institutional adoption and accessibility for investors. The approved ETFs include products from major firms such as BlackRock’s iShares Bitcoin Trust, Grayscale Bitcoin Trust, ARK 21Shares Bitcoin ETF, Bitwise Bitcoin ETP Trust, WisdomTree Bitcoin Fund, Fidelity Wise Origin Bitcoin Trust, VanEck Bitcoin Trust, Invesco Galaxy Bitcoin…
Marius Bogdan Dinu 
@bdinu89
@bdinu89
1 year ago 
596 views
Bitcoin Should be Banned in the United States: Charlie Munger
Berkshire Hathaway’s vice chairman, Charlie Munger, called for a ban on cryptocurrency in the United States on Monday, similar to the one in China. In an op-ed published with the Wall Street Journal, Munger argued that Bitcoin isn’t a currency, commodity, or security, but simply a form of gambling “ with a nearly 100% edge for the house. As such, the enactment of a federal law should ban such things from happening. Munger cited the Chinese communist party’s ban on…
2 years ago 1.5 k views
Tesla’s BTC Positions Remained Unchanged in Q4 of 2022
According to a new earning report from automotive manufacturer Tesla, the company did not sell any of its BTC holdings in the fourth quarter of 2022. Amid speculations that the company had traded BTC during the testing bears, CEO Elon Musk revealed it was yet holding on to its BTC stash. Tesla Maintains Holdings After Initial Sell-Off In Q2 of 2022, Tesla opted to sell 75% of all its BTC. The car manufacturer received close to $950M in exchange. Notably,…
2 years ago 1.5 k views
Here’s When Grayscale Debates the SEC in Court on its Bitcoin Spot ETF
The District of Columbia Court of Appeals has marked a date for when Grayscale and the Securities and Exchange Commission (SEC) may present oral arguments regarding the approval of a Bitcoin spot ETF. Each side will present its case at 9:30 am ET on March 7, with the SEC arguing against the product, and Grayscale arguing in favor. Grayscale VS SEC The court date – revealed in a court order filed on Monday according to CNBC – is much earlier…
2 years ago 1.8 k views
Ethereum
Ethereum’s Zhejiang Staking Withdrawal Testnet for Shanghai is Live
At 15:00 UTC on Wednesday, the much-anticipated Zhejiang testnet for staking withdrawal went live on Ethereum’s Beacon chain. Zhejiang will enable the testing of the Ethereum Improvement Proposal (EIP) 4895 which allows for staking withdrawals. This is in preparation for the network’s next major update, the Shanghai hard fork slated to launch sometime in March. Users Can Make Simulated Withdrawals with Zhejiang In a tweet yesterday, DevOps engineer at Ethereum foundation Barnabas Busa gave details about the Zhejiang testnet slated…
2 years ago 1.6 k views
Ethereum Devs Disagree Over Technical Tweak as Shanghai Upgrade Nears
Post-merge Ethereum users have been eagerly awaiting the commencement of the network’s next major upgrade, Shanghai. However, after over 3 months of prep time, it appears the Shanghai rollout isn’t going as smoothly as expected. What Exactly is the Shanghai Upgrade? In September last year, the much-publicized Ethereum Merge also known as the Ethereum 2.0 upgrade went live. Ethereum underwent some significant changes as its consensus mechanism transitioned from proof-of-work to a cost-efficient proof-of-stake system. However, since the Beacon launch…
2 years ago 1.6 k views
FTX Hacker Converts 50k Stolen ETH to BTC
Per a report from blockchain analysis firm Chainalysis, the attacker behind the Nov 11 FTX exploit, is converting the stolen ETH to Bitcoin. There were muted fears the seemingly inexperienced perpetrator could dump all its ETH holdings. On Sunday, the attacker dumped 50k ETH on-chain, with ETH's price dipping by almost 7%. https://twitter.com/chainalysis/status/1594349583416840199?s=20&t=pgvQHeVytI20eKQ1ls9bxw Hacker Moves 50,000 ETH to New Address Over the past week, the perpetrator had been steadily swapping the cryptocurrencies they had carted off for Ether tokens. This…
3 years ago 1.9 k views
Censorship Concerns: 51% of Ethereum Blocks Now OFAC Compliant
According to new data, over half of the blocks on the Ethereum network now reportedly comply with the US Treasury OFAC’s standards. This comes roughly a month after the platform’s monumental merge update. Phasing Out Tornado Cash The Office of Foreign Assets Control is the intelligence and enforcement agency of the US Treasury Department. Indeed, the OFAC administers and enforces US financial sanctions. A prime example of this is the recent, highly-publicized ban on crypto mixer Tornado Cash. According to…
3 years ago 1.8 k views
Trading
How to Leverage Arbitrage Opportunities in Crypto Markets
Cryptocurrency arbitrage has become an increasingly popular investment strategy as the crypto market grows and evolves. Arbitrage involves taking advantage of pricing discrepancies between markets or exchanges to profit. Investors can leverage profit opportunities by understanding cryptocurrency arbitrage while managing associated risks. In this guide, we'll explore cryptocurrency arbitrage and how it works. A Bitcoin-related example will help us illustrate the concepts of this strategy. What is Arbitrage and How Does it Work in Crypto Markets Crypto arbitrage trading is…
2 years ago 3 k views
The Different Types of Copy Trading in Crypto
Are you interested in trading cryptocurrencies but feel intimidated by the complexity of the process? Copy trading is a great way to get into crypto without needing to be an experienced trader. With copy trading, investors can benefit from the experience and knowledge of more experienced traders, allowing even beginners to succeed. How does copy trading work, and which tips do you need to know to succeed? In this article, we'll explore all aspects of copy trading in crypto. What…
2 years ago 1.7 k views
How to Spot an Unsafe Crypto Exchange
Cryptocurrency exchanges have become increasingly popular as they provide a platform for people to buy and sell digital assets. Unfortunately, not all crypto exchanges are safe or reliable. With the rise of cybercrime and fraud, you must learn to spot an unsafe crypto exchange before investing your money. This guide will help beginners identify and avoid potential risks when selecting a cryptocurrency exchange. The Role of Crypto Exchanges on the Digital Assets Market Cryptocurrency exchanges play a crucial role in…
2 years ago 2.2 k views
What Is Grid Trading in Crypto?
Crypto grid trading has become a popular strategy because of its ability to help traders capitalize on market volatility. Grid trading means you can produce consistent profits by taking advantage of price differences in different markets or time frames. By establishing buy and sell orders at predetermined intervals, you can take advantage of these fluctuations in an automated way. This guide will explore the different aspects of grid trading and provide an overview of its benefits, challenges, and more. Through…
2 years ago 1.6 k views
Tech
Introducing una Messenger: A Paradigm Shift in Blockchain Connectivity
The digital landscape is set for an unprecedented transformation with the introduction of una Messenger, the latest innovation from web3 development powerhouse Wemade. This platform represents an evolution of the "PAPYRUS Messenger," serving as the cornerstone of the ambitious "unagi" initiative, aimed at catalyzing the mass adoption of blockchain technology. The "Unbound Networking & Accelerating Growth Initiative" seeks to bridge the divides between diverse blockchain services and networks, heralding a new era of interconnectedness. A New Frontier in Blockchain Communication…
Marius Bogdan Dinu
@bdinu89
@bdinu89
1 year ago 573 views
Bit2Me Champions WEMIX Token in Pioneering European Listing
Bit2Me, Spain's premier virtual asset exchange, has recently broadened the horizons for cryptocurrency enthusiasts by listing WEMIX, the cornerstone token of the WEMIX3.0 blockchain ecosystem. This marks a notable achievement as WEMIX's inaugural venture into the European market, emphasizing the token's role in facilitating a range of blockchain-based activities, from gaming transactions to decentralized finance (DeFi) applications. Launched with the intention to democratize access to WEMIX for the 450 million Spanish speakers around the globe, this strategic move aligns with…
Marius Bogdan Dinu
@bdinu89
@bdinu89
1 year ago 404 views
CryptoVirally Expands with Fresh Crypto Marketing Offers and Cointelegraph Upgrades
In an exciting update for the cryptocurrency marketing landscape, CryptoVirally has announced a series of new entries and enhancements to its already comprehensive range of services. These updates, aimed at providing tailored marketing solutions for crypto projects, include new limited-time offers and expanded options for Cointelegraph publications. Limited Offers: A Game-Changer in Crypto Marketing CryptoVirally's limited offers section presents an enticing opportunity for crypto projects to leverage high-impact marketing services at discounted rates. These offers, available for a limited period,…
Marius Bogdan Dinu
@bdinu89
@bdinu89
1 year ago 465 views
Breaking Boundaries in Blockchain: WEMIX’s ‘una Wallet’ Sets New Standard for Multi-Chain Asset Management
The WEMIX Foundation has unveiled 'una Wallet,' a revolutionary digital wallet designed to offer unparalleled convenience and security in managing digital assets across various blockchain networks. The announcement, made on January 17, 2024, signifies a new era in the seamless integration of multiple blockchain protocols, including Arbitrum, Avalanche, BNB Smart Chain, Ethereum, Kroma, Optimism, Polygon, and WEMIX3.0. 'una Wallet' is more than just a digital wallet; it represents the culmination of WEMIX's innovative efforts in the blockchain space. It serves…
Marius Bogdan Dinu
@bdinu89
@bdinu89
1 year ago 592 views