Dramatic Decline in Digital Assets Losses in 2023, Reports CertiK
Summary:
The 2023 total loss in digital assets was $1.8 billion, according to blockchain security firm CertiK. Although this is a significant amount, it is a 51% decrease compared to the loss of $3.7 billion in 2022. The Ethereum network saw the highest losses, and breaches involving private keys were the most expensive attacks. Furthermore, the report reveals substantial security challenges in cross-chain interoperability. Despite these setbacks, CertiK's co-founder, Ronghui Gu, remains optimistic about the improvements in blockchain security.
The total losses in digital assets for 2023 were pegged at $1.8 billion, spread across 751 distinct security breaches, as per figures released by blockchain security specialists CertiK. Although substantial, this represents a 51% drop compared to the $3.7 billion loss experienced in 2022 due to hacks and other security-related issues. The statistics were part of CertiK's annual "Hack3d: The Web3 Security Report 2023" issued on January 3, providing in-depth insights into Web3's security situation in the previous year.
The publication reveals that the third quarter of 2023 was the most heavily hit with losses surpassing $686 million. Additionally, the report highlights that security compromises involving private keys were the most expensive attacks. During 2023, this type of breach accounted for 47 incidents with a total loss exceeding $880 million.
When examining losses by blockchain, Ethereum's network saw the most significant losses, amounting to $686 million in 224 events. This corresponds to an average loss of $3 million per individual breach. In contrast, BNB Chain had a larger number of security breaches, 387 in total, however, the cumulative loss was considerably lower at $134 million.
Furthermore, the report exposes the ongoing issue of security breaches in cross-chain interoperability, with losses nearing $800 million for breaches impacting multiple blockchains.
Ronghui Gu, CertiK's co-founder, expressed that despite the setbacks, 2023 was a year of "positive development" for blockchain's security realm. The expansion of bug bounty platforms and proactive security efforts indicates an optimistic trajectory which will hopefully reflect in diminished losses in 2024. Gu further added that the 51% decrease in losses could be linked to the broader bear market which saw a reduction in token and treasury valuations. If the bull run sees maintained low losses, this would suggest that lessons have been learnt in the sphere of Web3 security.
Published At
1/4/2024 5:00:00 AM
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