The security of crypto networks: The cyberattack on the Poly Network – a platform for transferring cryptocurrencies – which came to light on 11 August 2021, has generated media coverage that extends far beyond the blockchain community. The hacker managed to transfer over 600 million US dollars in various cryptocurrencies to their own address. Thanks to the transparency inherent in blockchain technology, users from all over the world were able to track the transactions and contact the hacker via the blockchain. In a Q&A session with the hacker, he explained his motivation. He said he had merely wanted to highlight the vulnerability in the network and prevent anyone else – such as a Poly Network employee – from discovering and exploiting the security flaw. The hacker has since returned the funds to the developers.

(see https://www.tagesschau.de/wirtschaft/krypto-raub-101.html)

Many media outlets are using the aforementioned incident as an opportunity to question the security of smart contracts. This overlooks the fact that any code can be hacked. One example of this is a hacker attack on Facebook that took place in April 2021, in which around 530 million pieces of user data were stolen (see https://www.spiegel.de/netzwelt/web/facebook-versucht-ein-riesiges-datenleak-kleinzureden-530-millionen-betroffene-a-47959c32-4a9f-4719-9050-d26ed154cb8f). Most providers have their code audited by independent experts and introduce so-called bounty programmes, under which hackers receive rewards for uncovering security vulnerabilities. This is because when IT experts analyse code and uncover flaws, it helps to make smart contracts more secure in the future. (Publication date: 18 June 2021)