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DeFi Sees 40% Fewer Financial Losses as CeFi Struggles with Breaches
A new report by Hacken has revealed a stark contrast in the financial security of decentralized finance (DeFi) and centralized finance (CeFi). According to the findings, DeFi experienced a significant drop in theft-related losses, down by 40% compared to the previous year. This substantial decrease is attributed to enhanced security protocols, including more robust bridges and advanced cryptographic techniques.
On the other hand, CeFi has witnessed an alarming surge in security breaches, with losses exceeding $694 million in 2024. The report highlights a series of high-profile hacks on centralized platforms such as DMM and WazirX, resulting in significant financial losses. These incidents have exposed the fragility of centralized control systems, which Hacken identifies as one of CeFi’s major weaknesses.
The report emphasizes the critical need for better private key management and more advanced monitoring systems to address these vulnerabilities. Moreover, it warns about the growing threat from hackers, including North Korean groups, underscoring the urgent necessity to improve security measures across both DeFi and CeFi sectors.
As a result of these findings, it is essential for stakeholders in both ecosystems to take immediate action. CeFi must prioritize strengthening its operational security to prevent such catastrophic losses, while DeFi should continue to innovate and adapt to evolving threats.
Source: crypto-economy.com
