Safest blockchain for DeFi
Welcome to Hoken Tech
It is undeniable that the blockchain has made a fundamental contribution to the evolution of information technology, but also on the finance side, as thanks to the possibility of transferring value without intermediaries, it has made the management of one’s funds more versatile, making us understand the meaning to be your own bank.
And given that thanks to the blockchain we are our bank, taking advantage of the decentralization of this technology, we can also emulate and make profits in the same way that banks make profits, but using decentralized finance (DeFi), i.e. all those protocols that allow us to make our cryptocurrencies profitable in several different ways, such as lending, liquidity pools, and more.
But how to understand which are the safest blockchains for this sector?
If in a traditional world, we have various institutions and systems set up precisely for the protection of the final consumer, or of the rating companies that judge, more or less, a specific company, or even a State, in the world of blockchain we do not find this type of structures. , also because in any case they would be centralized going to coincide with the very nature of blockchain technology.
So in this case, and thanks to the transparency of this technology, a valid and objective system for determining whether a blockchain is secure or not, is by looking at the various attacks that the different protocols have suffered overtime on that blockchain.
By doing this we can create and approximate a security “index” for our funds as if we know that a particular blockchain has suffered 100 attacks and lost millions of dollars, while another blockchain, like similar protocols, has suffered 0 attacks and therefore did not lose even 1 cent, then in the latter case, I would focus on those protocols of that particular blockchain.
What data to consider?
For this article, we will use public data provided by Slowmist, a company that deals with blockchain security, and specifically, we will use the total number of attacks suffered on the various blockchains, and the total amount, in dollars, of what has been stolen from users.
Let’s not forget that all the millions and sometimes billions of dollars stolen have been stolen by all those people who have used those protocols and that blockchain, believing them to be reliable and safe.
To calculate the percentage incidence instead, it will be enough to subtract 1 day from each attack suffered from the various protocols to optimally calculate, over a year, the percentage of reliability of the single blockchain.
The blockchains that will be examined will be the following:
To get a better view, we arrange the data in a convenient graph so we have the various data exposed in an optimal way:
Here instead the total of dollars stolen for each blockchain:
Now let’s move on to calculating the various security indices of the various blockchains for this year:
As can be seen from the data and graphs, we see that the EOS blockchain emerges triumphant both in terms of the number of attacks and both for stolen funds, which in both cases are equal to 0, instead the less secure blockchain where to put your own money in decentralized finance is that of Binance Smart Chain (BSC), followed by that of Ethereum, very well instead that of Avalanche where it suffered only 1 attack in 2022.
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