30s Summary

Astrovault founder Eric Waisanen believes that while two-factor authentication (2FA) is critical for data security, it is not enough, especially for decentralized exchanges (DEXs). DEXs, despite their anonymity and user control benefits, are also prone to security breaches. In Q1 2024, DEXs lost $336 million due to hacking. He urges DEX developers to prioritize security above everything else and advises them to go beyond basic security measures to ensure user investments are safe. He adds that while DEXs should maintain access and openness, they must balance this with protecting their users against risks.

Full Article

Hey, so here’s the take from Eric Waisanen, the big shot who founded Astrovault. No one’s a huge fan of two-factor authentication (2FA), right? It can be a real pain, depending on the platform, and seriously slow you down. But let’s not ignore that 2FA is important for keeping our data safe, despite being a bit of a drag.

Just sticking to 2FA or any additional security steps won’t always cut it though. Security is an ongoing deal. You gotta keep up with threats as they change and grow with technology. This is especially true for decentralized exchanges (DEXs). They lack central oversight and have big money up for grabs, so things can get risky pretty fast.

So, it’s really important to look after security now more than ever to avoid losing stuff and to keep everything trustworthy and reliable. If you’re a DEX developer and security isn’t top of your list, you might wanna rethink your game plan.

Let’s quickly touch on the DEX security scene. One cool thing about a DEX is how anonymous it is. It lets users call the shots with their assets, no need for personal IDs or checks. But while this sense of control makes DEXs more private and free, it also has its downside when it comes to security.

DEXs haven’t been safe from big-time attacks. Just in the first quarter of 2024 alone, a whopping $336 million in digital money was nicked from decentralized finance platforms. DEX hacking attempts are really cranking up. Take “jaredfromsubway,” a bot known for its clever tactics, making millions in Ether and showing us just how weak DEXs can be.

Security audits used to be the go-to way to keep things safe and build trust, but they can’t promise anything. Scary breaches have even happened on platforms thought to be safe.

So, the first DEX has been around for eight years now. Sure, there were bound to be a few bumps along the way, but if we want users to feel secure with their assets, it’s time to seriously tighten up the defenses.

Now imagine being a DEX developer who’s put loads of time and effort into creating something new, just for a security glitch to ruin everything. An exciting new feature can quickly go sour if user investments are in danger, so it’s crucial to identify any possible weak spots to make sure everything runs smoothly and securely.

Developers gotta be committed to going beyond the basics when it comes to security. If they’re not, they might wanna rethink their strategy. A good starting point could be to plan everything from the get-go, incorporating even things that might not seem necessary at first.

Even though DEX platforms should encourage access and openness, they must protect their users. As they keep growing and bringing more people into the mix, it becomes a game of balancing exciting technologies while defending against risks.

Just a little bit about Eric Waisanen – he’s been in the Web3 area since 2017, and remember, this article is for info purposes only, so don’t take everything as gospel for any legal or investment advice.