By Mark Ackman
Decentralized finance has recently taken a number of steps to maintain its relevance in the mainstream. Most people who are getting into the crypto market are looking forward to taking on the challenges that come with it.
However, recently, the DeFi platform has started to face even more problems in recent years, such as its tendency to get hacked more often. In fact, the rate of cybercrime in the crypto space has increased exponentially, which has led to people often leaving the market.
Of course, the problems that hackers pose to the market come with real threats of inflation and various other macroeconomic factors that can affect the prices of many cryptocurrencies. And with the market losing close to $800 million in the span of just over 20 days, it goes without saying that there is a serious problem.
Furthermore, the cost of the increased prices of everything rising is that many DeFi companies have to downsize and fire a large chunk of their workforce. Therefore, it is slowly becoming apparent that the market as a whole needs to make the necessary changes to keep hackers away.
Regulators are not bad
Regulators are failing to keep up with the overall speed of the crypto market. Therefore, the real issue with this specific market is that they will make much broader sweeps that can end up hurting the innovation that these markets are trying to achieve.
Of course, this strikes up the conversation about regulation, which can be especially sensitive with the entire market. The community is generally not in favor of regulation, since they believe that it will take away a lot of the individuality of the market.
But the truth is that regulators in the market are not the enemy. In fact, through proper regulation, the rate at which these hacks are happening can drastically decrease the overall rate at which these attacks happen. Furthermore, if the attack does happen, regulation will put companies in a position where they need to effectively store money to keep most of these funds safe.
Bridges are the Weak Link
The first real contributor to the hacking problem is the bridges, which contribute to the bulk of the problems that most companies are facing. Hackers can easily get access to these bridges and intercept data while it is in transit, which also means that companies will usually find out about the hack until it is too late.
It Could Likely Get Better Soon
The important distinction that you need to make about the crypto market is that it still has a long way to go when fighting off these hackers. But with time and proper funding, many businesses are working on ways that they can stop this from happening.