The BNB Smart Chain Sees Significant Reduction in Financial Losses Due to Security Incidents
The BNB Smart Chain (BSC) has made remarkable progress in improving blockchain security, with an 85% decrease in financial losses due to security incidents in 2023 compared to the previous year. This significant reduction demonstrates the effectiveness of strategic security measures implemented by the BNB Chain Core Development Team.
One of the key contributors to this achievement is the proactive alert system of AvengerDAO, which played a crucial role in preempting scams and hacks. In 2023, AvengerDAO issued numerous alerts, including 3,500 Red Alarm notifications and 330 alert tweets, significantly reducing the impact of potential security threats.
Despite the decline in financial loss, BSC witnessed a 44% increase in security incidents year-on-year, with a total of 414 incidents reported in 2023. Out of these, 315 incidents occurred in DeFi projects. However, there was a significant improvement in the final quarter of 2023, with a 64% decrease in fiat losses compared to the third quarter. Additionally, hack incidents decreased by 51% in Q4, dropping from 130 in Q3 to 86 in Q4.
The report categorizes the types of attacks and threats on BSC, with hacks constituting 50.72% of the incidents, closely followed by scams at 49.03%. Scams resulted in $87.9 million in losses, marking a 54% decrease, while hacks led to $73.2 million in losses, marking a 91% decrease.
The AvengerDAO’s meter API played a significant role in this achievement by scanning over 1 million unique contract addresses and identifying 35,000 as high risk. Although there were some missed opportunities for safeguarding projects, the initiative has been highly effective in mitigating threats on BSC. Comparing hack values between the two most recent six-month periods, there has been a substantial decline in losses, from over $713 million in the latter half of 2022 to about $34 million in the first half of 2023.
This positive trend in BSC’s security landscape is also reflected in its vulnerability statistics. BNB Chain accounted for only 0.9% of the total vulnerabilities in the ecosystem based on TVL in Q1 2023. Furthermore, only around 9% of the estimated 2,000 active projects in the ecosystem were impacted in H1 2023.
Overall, the BNB Smart Chain has made significant strides in enhancing its security measures. The considerable reduction in financial losses due to security incidents demonstrates the effectiveness of the proactive alert system implemented by AvengerDAO. With ongoing efforts to improve security and mitigate threats, BSC is well-positioned to continue its growth as a secure and reliable blockchain platform.