How to improve DeFi security


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Creating cryptocurrency from scratch is not easy. This requires in-depth knowledge of various programming languages ​​and knowledge of blockchain use cases, among others. Instead of making that effort, newcomers to the crypto space who want to start their own venture tend to turn to tokens.

Tokens are a crypto asset that exists within an ecosystem, like a project built on Ethereum. A token can be compatible with all Ethereum-based assets sharing the same token standard, but would not be compatible with cross-chain cryptocurrencies.

Essentially, tokens make it possible to start your business or idea based on the blockchain without the massive effort required to create cryptocurrency from scratch. However, with its creation comes its own set of issues such as the legality, fees, and security of smart contracts.

A cryptographic security standard

With the increase in decentralized finance (DeFi) applications, platforms are suffering from more hackers than ever before. DeFi hacks caused more $ 1.9 billion user losses so far in 2021, which means token security is more vital than ever. Unfortunately, there is no easy solution to such threats.

Some projects may not be able to afford experienced contract developers, which could be their downfall before they even start. For an industry trying to mainstream and ask developers from all walks of life to start their own tokenized projects, security needs a standard. Otherwise that $ 361 million is about to be much higher.

Projects and developers need a simpler way to establish token security. However, there are blockchain projects that help new developers – platforms that generate tokens with predefined security standards to ensure developers have a baseline.

Simplified Token Development

A decentralized token deployment application (DApp) allows users to create and deploy their own tokens through a Web 3.0 wallet. The token would follow all the necessary standards on the blockchain of its choice and benefit from the security and efficiency of the blockchain.

More information on lossless here

Of course, such a project would have to have pre-audited code, and a DApp deployment would need strong developers and a strong team behind them.

The project that currently exists in this same form is Without loss. It is a multi-channel protocol that mitigates DeFi hacks via specialized code that projects embed into theirs. By inserting the Lossless code into the token, token creators are protected against fraudulent transactions.

A lossless solution

Lossless works by integrating user-created hacking detection bots that freeze suspicious transactions. Bots are created by white hat hackers participating in the network, who earn rewards every time their bot finds a hack.

Lossless recently launched a Token changer feature that allows developers to create their own smart token contracts on the Ethereum (ETH), Polygon (MATIC) and Binance Smart Chain (BSC) networks. The project code is pre-audited, giving users a secure way to start their own token. The lossless token trial is also free, requiring users to pay gas charges only once for contract deployments. Minters can choose to pay for a third-party security audit from cybersecurity firm Hacken.

Tokens issued in Lossless have a built-in dormant code that is activated when the Lossless security protocol is launched. Dormant code exists of course alongside the other security features of Lossless.

The Lossless Typing Tool is intended as an experimental feature allowing users to test this security for themselves. He creates a token in a few minutes, allowing everyone to lay the foundations for their idea. Lossless describes the tool as “a free tool allowing anyone to create and deploy token contracts at will on ETH, BSC and Polygon. You will have completed your contract in a few minutes. Go ahead, start playing and experimenting.

Disclaimer. Cointelegraph does not endorse any content or product on this page. While our goal is to provide you with all the important information we may obtain, readers should do their own research before taking any business related action and take full responsibility for their decisions, and this article cannot no longer be considered as investment advice.

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