This Could Change DeFi Forever (ThorChain HACKED)

thor chain and its native token rune was one of the best performing crypto assets during the first leg of the 2021 bull run with prices climbing from as low as two cents in january to an all-time high of over 20 dollars in may recent weeks have brought a series of hammer blows to the platform after not one not two but three separate attacks exposed some serious flaws on the network the most recent of which saw hackers making off with coins worth over eight million dollars today we'll be looking at how these latest attacks unfolded how it's been handled and what it could mean for door chain's future in the d5 landscape let's get it welcome to bitboy crypto home of the bit squad the largest and greatest crypto community in all the interwebs my name is ben every day on this channel i show you how to make money in crypto if you like money in crypto make sure to hit that subscribe button go ahead and like the video while you're at it the norse gods were rudely awoken last week to news of yet another hack on their chaos net not long after asgard's very own treasure chest was ransacked to the tune of 2500 ether this third exploit saw the perp stealing around 8 million dollars in assets not a great look for a platform named after the swoles viking in all of mythology for those of you unfamiliar door chain is a powerful cross chain protocol that allows users to trade crypto assets across various blockchains in a completely decentralized way typically to trade non-native crypto assets like bitcoin and ethereum directly need the help of a middleman in other words a centralized exchange and while we have decks as like uniswap and pancake swap trades remain limited between native assets for example erc20 and bep20 tokens respectively sure you can wrap your bitcoin to be used cross chain and ethereum liquidity pools but the process is clunky it also carries some risks enter door chain a liquidity pool that works cross chain to eliminate the need for unnecessary wrapping after being founded during a binance hackathon in 2018 the project has stayed true to its roots with a team that's largely anonymous and community driven for the crash in may the price appeared to be going straight to the moon but like most of the alts it saw a pretty brutal correction and now to add insult to injury it's been hit by a serious amount of bad press so what went exactly down with these recent hacks well after experiencing the second exploit to its chaos net in just a few weeks erc-20 tokens worth approximately 2 500 ether were withdrawn by an unknown trespasser at first this figure was estimated as being closer to 13 000 eth than 4 000 until finally being confirmed at around 2 500.

This discrepancy was likely due to additional loss from arbitragers cashing in on price manipulation as for the method of attack a postmodern report confirmed a custom wrapper had been used to trick the bitfrost protocol into reading a fake deposit oh and upon executing the attack the perp was hit by huge slippage fees of roughly 1.4 million dollars ouch these hacks played out almost in real time with door chain super strong community receiving a stream of updates via twitter and telegram as the team scrambled to take control during the second hack in mid-july the network was brought to a halt this drew criticism from some i mean surely any network that can be suspended so easily can't by definition be all that decentralized well it's not that simple after all pausing the network isn't a case of simply smashing a big red button in asgard's control room instead the network has specific thresholds and requires a certain number of nodes to run or halt the network all to ensure no individual or minority can affect the system oh and since i mentioned smashing buttons don't forget to hit that like and subscribe button to help us keep getting our content past youtube's highly centralized controls back to thor chain as for their decentralized status you've also got to consider their roadmap which will eventually see the protocol passed over to runeholders themselves with the admin keys being destroyed in the process despite some criticism the community has overwhelmingly defended door chain's handling of the situation praising their clear and open communication throughout the promise that any affected liquidity providers would have their losses covered leadership in action during tough times words that i assure you have never ever been uttered about a centralized exchange i mean can you imagine coinbase offering up its treasury's balance sheet to present the range of options to the community me neither it's important to know that anyone left out of pocket has been taken care of so the only one shouldering the burden is the thor chain treasury itself as door chain tweeted ensuring network funds is exactly what the war chest is for i mentioned their community was strong but if you wanted proof look no further than this door chad on their discord server wow one lucky arbitrager the benefit from the second hack offered the 10 ethie received back to the thor chain treasury the third exploit came only a week later with an attack on the eth router after a hacker was able to trick the bit frost protocol into accepting a deposit of fake assets before claiming a refund according to a message hidden in the transaction hash they could have taken a whole lot more too including eth btc bnb and bep 20s making this what's known as a white hat hack where impact is intentionally limited in order to teach a lesson well good guys they even signed off by urging door chain not to rush code that controls nine figures and it would appear the team has taken note reassuring the community that the treasury has the funds to recover and also that it's time to slow down so not exactly a great month for torching but what about the price well suffice to say things were already way off the prices we saw in may but the hacks drove prices down even further to a recent low of three dollars and one cents a massive 7x below the all-time high of over 20 dollars some people found this amusing like the self-appointed bitcoin messiah himself max keiser who took to twitter to post this chart he even called the team crooked for halting the network which is ironic and as thor chain pointed out in a series of tweets when bitcoin faced a problem in the code almost 10 years ago satoshi himself took to a forum to resolve it along with the other devs in a very similar process what maxi max doesn't seem to understand is that roon is an innovating piece of tech still in the process of being battle tested maybe he doesn't even understand the problem it promises to solve also has this man never done a leg day what is going on here with these now i'll admit there's no way to spin it that is one fall from the valhalla but that's after it saw insane gains of over 2 000 in less than 12 months why because it has a phenomenal community of devs stakers and validators and it solves a genuine problem at the heart of decentralized finance yes door chain clearly isn't a finished product yet as evidenced by the recent exploits but if you believe in the long-term potential of devi and i certainly do then you'll recognize the clear and obvious use case for groundbreaking cross-chain protocols like these a shape-shift ceo said after the second hack incidents like these will prove a vital part of the journey he even went so far as to describe it as worth it because it's only by addressing system flaws at this early stage that it can become truly resilient when door chain becomes as strong against attack as his name would suggest then as they say in old norse it could ride all the way to valhalla baby it's definitely something that we'll be watching closely that's all i got be [Music] blessed [Music] you

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