What is Centralization Risk in Crypto?

Hello readers Did everyone ever know that with Decentralization Blockchain, there is a chance that we will encounter the risk of Centralization Risk

This may sound like a self-contradictory sentence. But today we are going to explain the risks that occur both about cryptocurrency and decentralized finance

First, the risks of centralization of the blockchain network. It is undeniable that some blockchain networks are centralized, for example, where node validators can mutually pause the protocol and revert to the previous block or prevent transactions in that block from occurring. This is usually done in cases where there are severe security implications already in the block, which the existence of this method causes. having control over something If used in the right way, it’s good.

Second, the risks associated with Centralization on DeFi, mainly focus on smart contract code, which is written to configure certain values. that cause jamming, interruption, or not in the way the developers want Or is it the intention of the developers themselves?

Normally, those who will use or participate in any project. Such risks should be investigated. To accept such risks, such as the trading halt function, fee rate increase function, and other functions. This may cause you to lose money in the protocol. or such projects

Please follow us in the next article.

As a team of highly skilled cybersecurity experts, SCRL (Previously SECURI LAB) was established in 2018. Our team of security researchers has amassed over three years of expertise, and we have a strong foundation as consultants for organizations seeking to enhance their cybersecurity measures. Utilizing only the most reliable and industry-leading inspection tools, we strive to deliver the most comprehensive and effective solutions for our clients.

Follow SCRL On:

Website: https://scrl.io/
Twitter: https://twitter.com/scrl_io
Telegram: https://t.me/scrl_io
Medium: https://scrl.medium.com/