In 2021, well over half a billion was stolen through Defi Smart contract hacks. The Crypto community is battling a virus from within.
Here is a sample list of hacks:
Since transactions on blockchains such as Bitcoin and Ethereum are immutable, hackers usually get away with millions of dollars of value. Developers are sandwiched between innovation and fear of hackers.
To solve this problem, there are multiple solutions such as smart contract audits, defi smart contract insurance, etc.
Ensuring smart contracts is one of the fascinating developments within defi protocols. Decentralized insurance acts as a safety net for the DeFi ecosystem. From wallet insurance to smart contract insurance, the comfort of knowing that your assets are protected in the case of a bug or a hack creates peace of mind for crypto investors If ever there is a hack, the user gets paid by an insurance company such as Nexusmutual.
The best part of Defi insurance is, that you can be an insurance provider for others as well. If you wish to provide insurance, you would stake your funds and receive part of the insurance premiums paid directly to you. Imagine where everyone on a given protocol acts as both insurers and insured. Insurance payments would go down drastically and efficiency is brought to the insurance industry.