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DApps: Security Issues, Hacks, and Preventive Measures

Dapps security smart contract

By cypher shieldPublished 11 months ago 3 min read

Decentralization is the new norm for the next period in all spheres of life. DApps are here to transform how we use applications by fusing ownership and data privacy features.

Describe DApps

Decentralized app audit services, or DApps, employ blockchain technology to handle data over a distributed network and carry out transactions. DApps, in contrast to centralised apps, are run through peer-to-peer networks.

A number of applications may be constructed on top of the DApp source after the developer releases it. Since the P2P network manages them, there is no single authority and hence no single point of failure.

DApp helps create numerous applications such as web applications, games & entertainment, social media apps, etc.

Important DApp Characteristics

Here are some tips on the main characteristics of DApps.

They have user-controlled open-source code. Thus, all modifications or new inclusions are put to a vote before being enacted.

The fundamental principle by which all the information is stored in the open distributed ledger is decentralisation.

Tokens that are native to the platform are used by DApps to pay users for participating in or mining them.

Use of DApps news

DAppRadar claims that there are already 2.4 million users of Blockchain dapp auditing company, with that figure increasing by 396% annually.

In Q1 2022, gaming DApps accounted for over 50% of user engagement, while NFTs generated a significant $12 billion in revenue.

Issues with DApp Coding Security

Now that you are familiar with the general concept of DApps, let’s look at some of the frequent technical mistakes related to them.

Signature verification: The transfer transaction is forbidden when the check format “case => true” is used in the @verifier function of the DApp code, while other transaction types are permitted.




match (tx) {

case t:TransferTransaction => false

case _ => true # NEVER DO THIS!


However, any user can carry out transactions using this kind of code, with the exception of transfer transactions. Any user can run a transaction by supplying the public key in the “senderPublicKey” field without adding signatures.

To avoid the aforementioned vulnerability, it is essential to guarantee the inclusion of a signature check in the DApp code.

Entering keys: The key-value store is a component of the DApp’s activities. Developers frequently make the error of writing to one key and reading from another. Therefore, caution should be used when writing keys.

General DApps-Related Concerns

Low liquidity of DApps: Slippage occurs when it is impossible to purchase or sell tokens at the anticipated price due to low liquidity levels on decentralised apps. Slippage, which can result in a loss of cash, is the discrepancy between the predicted and executed pricing.

Before purchasing or selling a token, users may use trade volumes to monitor the assets’ liquidity and make informed choices.

Security failure or breach: Security Audit for dApp use smart contracts to work, and those with code vulnerabilities are excellent targets for hackers. Devaluation or money loss in DApps is unavoidable in severe market conditions or as a result of code attacks.

DApp phishing: If the DApp’s coding is compromised, phishing URLs are disseminated on its official websites. They empty the user wallets of all their money when clicked inadvertently.

So, before adding money from your wallets or inputting wallet details, double-check the URLs.

Situation With DApp Scams And Hacks In 2022

DApps’ drawback is that they are susceptible to hacking. According to DAppRadar’s data, the loss from DApp frauds was $1.2 billion.

Here’s How To Stay Secure And Preventive Methods To Adopt For DApp Security

For DApps, overcoming security issues is the main obstacle to be overcome. There are several options for organising it.

Engage in auditing activities: In-depth coding examination performed by an auditing company like Cyphershield Audits removes flaws at their source.

Testing APIs, uncovering hidden/node vulnerabilities, and finding new attack routes are all advantages of penetration testing.

General Preventive Measures For DApp Security

  1. Maintain the secrecy of the private seed phrase to access the funds from the wallet
  2. Verifying the authenticity and legitimacy of the DApp website
  3. Be wary of links or texts with grammatical errors.

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About the Creator

cypher shield

Get your smart contracts audited and certified by leading smart contract security experts. Our smart contract audit services cover functionality, vulnerabilities, and gas efficiency. Talk to a consultant now to get started.

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