Richard Ma, CEO and co-founder of blockchain security company Quantstampexplained that DeFi has the potential to change our financial ecosystem, However, security is still a big challenge.
“We believe that security is very important to the growth of DeFi,” he said today at the Unitize. Ma pointed out the various DeFi hacks that have taken place in 2020 so farand explained that only this year DeFi project funding of $ 26 million was stolen.
The growing interest in DeFi
DeFi’s ecosystem grew almost three timesfrom $ 700 million in December 2019 to $ 2 billion today. When Ma thought about this growth, she noticed:
“This indicates a desire for an alternative financial system because, as you can see at COVID-19, banks are printing more and more money and the interest rates available in the traditional financial system are quite low, so people are looking for better options.”
He explicitly referred to the expansion of the project connection DeFi and He said nearly $ 700 million went into DeFi projects to generate returns that were much higher than those of the traditional financial system.
But security problems continue
According to Ma, DeFi projects promise financial inclusion, better interest rates and lower costs. many of them still lack securityThis is a critical security vulnerability for user funds.
Ma said that One of the biggest methods of attack is insufficient secured loanswhere hackers temporarily increase the value of some assets and store them in a loan log and then borrow another asset at the manipulated price.
Because these projects are decentralized and there is no way to track and restore illegal transactions, “it is important to have adequate security in advance.” Aside from security checks, focusing on live security monitoring, increasing transparency, and insurance will be the way to increase DeFi’s potential.Ma closed.