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Understanding Smart Contract Risks and Avoiding Losses

2023-07-21
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  • Contract vulnerabilities caused $66.49 million in losses from security incidents in H1 2023, prompting the need for enhanced security measures.
  • Bitget Wallet (Previously Bitget Wallet (Previously BitKeep)) urges project development teams to prioritize secure coding, conduct contract code audits, and use established security libraries to safeguard user interests.
  • Bitget Wallet (Previously Bitget Wallet (Previously BitKeep))'s "Smart Contract Risk Detection" tool empowers users to proactively identify risks, halt unauthorized activities, and minimize potential vulnerabilities, ensuring a safer crypto experience.

In the first half of 2023, contract vulnerabilities caused a staggering $66.49 million in losses from security incidents. Out of 157 on-chain security events, 32 exploited contract loopholes. To safeguard user interests, we urge project development teams to prioritize secure coding, conduct contract code audits, and leverage established security libraries.

As crypto users, it's essential to exercise caution when selecting projects and thoroughly inspect their code and security before engaging with contracts. With this pressing need for enhanced security measures, Bitget Wallet (Previously Bitget Wallet (Previously BitKeep)) has partnered with security firm Go Security to introduce the "Smart Contract Risk Detection" tool within the wallet.

Empowering users to take control of their assets, this tool enables proactive risk identification, halts unauthorized activities, and Empowering users to take control of their assets, this tool enables proactive risk identification, halts unauthorized activities, and minimizes potential vulnerabilities. Rest assured, Bitget Wallet (Previously Bitget Wallet (Previously BitKeep)) remains dedicated to protecting your assets and ensuring a safer crypto experience.

Understanding Smart Contracts

Smart contracts, those programmable and self-executing programs in blockchain systems, have revolutionized the crypto landscape since their debut on Ethereum. Solidity and similar languages enable traditional app developers to craft these intelligent contracts. However, due to blockchain's immutability, any errors or vulnerabilities in the contract code can result in catastrophic consequences.

Reentrancy, arithmetic overflow, flawed economic models, backend vulnerabilities, and mismanaged operations or private keys are potential pitfalls leading to disastrous asset losses. Some vulnerabilities may arise from project team mistakes, while others could be deliberate "backdoors" aimed at pilfering users' assets.

At Bitget Wallet (Previously Bitget Wallet (Previously BitKeep)), we prioritize your safety, and to ensure secure transactions and DApp interactions, our wallet supports smart contract security testing. Empowering users to detect contract risks effectively, our comprehensive tool allows you to identify potential vulnerabilities and risks in your contracts.

Keep your assets safe with Bitget Wallet (Previously Bitget Wallet (Previously BitKeep))'s Smart Contract Testing and explore the tutorial below to inspect your contract address before interaction. Together, we create a more secure crypto experience for all.

Detect Risks using Bitget Wallet (Previously Bitget Wallet (Previously BitKeep)) Wallet
  1. Update your Bitget Wallet (Previously Bitget Wallet (Previously BitKeep)) wallet to the latest version, then on the homepage, click "Tool" and select "Contract Verification." Choose the mainnet where the contract resides, paste the contract address, and click "Check now."
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2. If the contract poses risks, the results will indicate potential issues that require attention. For instance, if the contract has a "Sell Tax: 100%" feature, it might be a common scam token known as "pyramid" coin. Additionally, you can examine the token's holdings information to determine if it is a potential "scam token." If several holders' percentages exceed 100%, it could be a red flag for a fraudulent token.

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3. A normal contract check should produce results like the one below, indicating the token contract allows for an increase in total supply, with no risks of being unable to sell or common vulnerabilities detected.

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Closing

Bitget Wallet (Previously Bitget Wallet (Previously BitKeep)) emphasizes that contract detection results are not investment advice. Yet, when in doubt about certain tokens or DApps, it's wise to deploy this tool to mitigate potential risks before interacting. Stay vigilant against unknown airdrops and exercise prudence with contract authorizations.

In our commitment to safeguarding your assets and transactions, Bitget Wallet (Previously Bitget Wallet (Previously BitKeep)) will keep advancing with more technical and product-based risk defense mechanisms. Your security and peace of mind are our top priority. Trust Bitget Wallet (Previously Bitget Wallet (Previously BitKeep)) to fortify your crypto journey!

Follow Bitget Wallet (Previously Bitget Wallet (Previously BitKeep)) to stay up-to-date with all of our latest events, findings, and promotions, and let Bitget Wallet (Previously Bitget Wallet (Previously BitKeep)) be your premier gateway into the Web3 space.

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