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November 27, 2021

How to Improve DeFi security?

Security innovations lag when it comes to DeFi which is flourishing. Can it catch up? Creating crypto is not without its challenges. It is not easy. Those interested in taking up the venture must have in-depth knowledge of a plethora of programming languages. They must also have extensive knowledge of blockchain use cases, amongst other things. To avoid the hassle and extensive investment of creating cryptocurrency from scratch, some take to building their project turn to tokens.

What are Tokens?

These are cryptocurrency assets that are within an ecosystem. These can be a project built on Ethereum or any other altcoin. This asset can be designed to be made compatible with all assets within the ecosystem of a cryptocurrency that it is in. For example, an asset on Ethereum can incorporate all the same standards as other Ethereum tokens and also be compatible with cross-chain cryptos.

Advantages of Tokens

One of the fundamental advantages of tokens is that they allow for someone to build a blockchain-based business or concept without that business needing to make a massive investment in building a cryptocurrency from scratch. So, essentially, it increases accessibility for all. However, it is worth noting that this does not mean that the process is, therefore, free or negligible in cost. Businesses interested in creating their tokens still have to foot the bill for fees, legal matters, and smart contract security.

What about Security in DeFi?

Hacking rages on. It continues to be a significant problem when it comes to decentralized finance solutions. This problem has never been before now. In 2021 alone, decentralized financing security breeches cost US$1.9 Billion in user losses.

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What Causes this breach?

There must be several reasons that we can blame these breeches on. On the other side of the coin, , one reason could be an inadequacy in security measures. The industry is attempting to go mainstream. These security problems, if not addressed can only be expected to rise as the market continues to grow.

Possible solutions to the security problem

Perhaps if the industry attempted to work together to create an open-source solution in addressing a universal security standard, things could improve. The collective manpower, intellectual knowledge, and expertise could significantly impact this current sweeping security situation.

However the industry handles it though, development teams need simpler means of establishing token security. There is some good news though: blockchain projects are out there that help new developers generate tokens using pre-built security standards. Their support helps these new developers ensure they have a baseline.

Better token Development

A streamlined token development process is used in some cases. This process makes token development that much easier. One such example of this means of deployment is the DApp (decentralization application). This application helps users to mint and deploy their tokens using a Web 3.0 wallet. This token would benefit from the blockchain’s safety standards and effectiveness. It would also abide by all the standards required on that particular blockchain. The project would include pre-audited code and a deployment DApp.

Advantages of Features of better DeFi Security

The current project in that form has a Lossless form. This is a multi-chain protocol by Lossless that wards of hacks in decentralized financing using a specialized code. This is a code that projects include. By including this code, token creators receive protection from fake transactions.

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Regardless of this development, the lossless minting tools by Lossless are an experimental feature so far. The aim is for users to have the opportunity to try out the feature for themselves, as Lossless described it.