Tuesday, June 22, 2021

Ethereum in trouble: dApps continue to remain vulnerable, ETH likely to crash?

The Takeaway:

Ethereum Dapp collapses after a team of researchers expose the vulnerabilities in a gambling Dapp called Fair Win. The admins of the smart contract had full control over who could withdraw ETH tokens or not. In just two days after the vulnerability was made public, the Dapp collapsed as $8 million worth of tokens were withdrawn.

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Ethereum woes continue as a popular decentralized gaming app on the blockchain collapsed. Smart contract researcher Philippe Castonguay published a detailed report revealing the vulnerabilities in the gambling dApp Fair Win. According to the report, as much as $8 million worth of ETH may have been stolen by the platform’s admins.

Researchers discovered a vulnerability that enabled almost anyone to steal all of a user’s deposit. They also found various bugs and typos in the coding of the contracts. Ethereum’s blockchain has been under scrutiny for a long time.

Earlier, founders of the network Vitalik Buterin and Joesph Lubin admitted that they knew that blockchain was never designed for scalability. This has attracted a lot of criticisms for the duo. Some from the crypto community accused the founders of deceiving investors as the original ICO documents clearly stated that building scalable dApps are possible on the blockchain.  

Philippe Castonguay and his team exposed the vulnerability on Fair Win Dapp on 26th Septemeber, and at the time, there was $8 million worth of ETH tokens stored in the smart contract. In the next two days, all the funds were withdrawn. The researchers believe that admins might have dispursed the coins dishonestly as they had total control over the withdrawals. According to the report, several users failed to withdraw their ETH before the dApp collapsed. 

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Harry Finnerty
Harry Finnerty
After completing his graduation from Strayer University, Harry started to work in the real estate industry. However, soon he realized that his real interest is in the financial industry and once he came to know about bitcoin and the technology behind it, he dedicated his life to understand and write about it.

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