Second Half of 2018 Sees EOS DApps Lose Upto $1 Million

It seems that dApps or decentralized applications hosted on the EOS blockchain platform have not been doing all too well on the security front lately. Recent data suggests they have lost nearly 1 million USD because of system hacks over the past five months. The EOS blockchain is extremely popular in the Chinese market and it is no wonder that this news was first broken by Chinese news agency Blockchain Truth.

Known as Ethereum killer, this blockchain was doing rather well in trumping the major features of the Ethereum blockchain. However, it now seems that just like Ethereum had run into security issues with regard to DAOs (decentralized autonomous organizations) earlier, EOS is having trouble ensuring its dApp platform is bolstered against threats from rowdy raiders who siphon off amounts worth a million or more.

The data was collected by blockchain security company PeckShield which tracks usage and statistics across various networks. The report published by the firm tracks data from almost half a year, from July 2018 to November 2018. During the period in focus, the EOS blockchain faced a total of 27 breaches. These breaches cost the blockchain network as many as 400,000 EOS, creating a combined value of nearly a million dollars according to current market prices.

A Chinese blockchain expert, Guo Yonggang, is of the opinion that the security breaches are a result of the dApps’ own security flaws. Most of these attacks, according to him, were not due to any inherent bug or flaw in the core EOS blockchain. However, despite having struck this optimistic note, Yonggang also warned against the possibility of more such attacks plaguing the decentralized applications in the near future.

According to the details of the report, the EOS blockchain has many accounts which are currently dormant. As a result, just about 37% of all these EOS account holders are real, active users. We can only hope they are being careful with what dApps they design.