Why is Ethereum stolen (why is Ethereum valuable)

Why Ethereum was stolen Why Ethereum was stolen

Today, let’s take a look at a Ethereum hacking event, which happened in December 2018 After the birth of Bitcoin, a large number of transactions occurred. But when ETH prices rise, many users encounter the problem of losing their digital currency; This time, Ethereum’s security problems in the exchange led to a large number of assets being stolen. Why was Ethereum stolen

First, we need to understand what is Ethereum Attack Due to the large number of applications currently running on the blockchain, attackers can obtain users’ funds through various means or engage in fraud, transfer, and other operations through phishing websites Generally speaking, the main reason why Ethereum is attacked is to ensure the security of user account information and avoid any potential vulnerabilities. For example, a vulnerability in a wallet address will make it impossible for other people in the whole network to use it, and eventually these users will be unable to extract their Cryptocurrency; In addition, there is also a method to steal the tokens stored by users from third parties, which further increases the user’s losses and leads to losses

Secondly, why was Ethereum blackened According to an official report, the total lockdown volume (TVL) of the DeFi agreement in June 2019 was $3.03 billion, a decrease of over 30% compared to $2.98 billion in 2019. In January 2018, the TVL of the Compound agreement also significantly increased to $1.5 billion. At the beginning of 2020, the TVL of the DeFi project had exceeded $100 billion, and in the past year, this data has continued to decline. However, with the development of decentralized finance and the development of a decentralized economy, this trend is gradually weakening. Project parties in the DeFi field are becoming vigilant about this situation, hoping to achieve faster payment business through smart contracts while reducing costs and risks – which is one of the most profitable things for ordinary consumers

Then why was Ethereum attacked by hackers

First of all, Ethereum is an open source network system, composed of many different components, each of which is open and shared for everyone. However, their interaction requires a certain degree of technical threshold, so most developers will consider entering the platform, so that more people can use Ethereum to build. If there is not enough money to expand the functions of Ethereum applications, most of the functions of Ethereum ecosystem will be shut down or disappear. The reason why Ethereum has become a Weather vane in the field of network security is that it provides a lower utilization rate than the traditional Internet. In addition, it also allows individual users to participate in the blockchain network, not just Ethereum itself

On the other hand, since Ethereum is a completely open source economy, and its Codebase is also open source, anyone who wants to disclose his code and provide free software can download this file directly and view his data and content online

Why Ethereum is valuable

According to the statistics of Ethereum WorldNews, the current price of Ethereum is about US $3.68. Why is ETH valuable? Ethereum is a platform currency for decentralized applications and a bifurcated asset of Bitcoin. However, from the market point of view, Ethereum’s price fluctuates greatly, mainly due to high transaction costs and Ethereum’s better ecology. For ordinary users, if they do not have enough network resources for daily activities or other requirements, Ethereum may not be a safe and reliable application to participate. After all, Ethereum has been recognized by many people, and it also has a certain value support and attraction.