Strategic Collaboration Leads to Notable Gains in BNB Smart Chain Security but Sustained Vigilance Still Necessary

Strategic Collaboration Leads to Notable Gains in BNB Smart Chain Security but Sustained Vigilance Still Necessary

UTC by Temitope Olatunji · 3 min read
Strategic Collaboration Leads to Notable Gains in BNB Smart Chain Security but Sustained Vigilance Still Necessary
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The BNB Chain team recognizes that scammers and hackers may adapt their methods, and therefore, continued efforts are necessary to maintain the security of the BNB Smart Chain.

BNB Smart Chain, a blockchain platform launched by the Binance exchange, has experienced a positive development in terms of security incidents. According to a recent report, losses caused by security incidents on the blockchain decreased by a remarkable 85% in 2023. The total losses amounted to over $161 million, a significant decrease from the previous year’s figure of $1.1 billion.

The security report was a collaborative effort of AvengerDAO, Hashdit, Certik, Ancilia, and Salus Security. These organizations worked together to analyze the security incidents and provide valuable insights into the state of security on the BNB Smart Chain.

Although the total losses decreased, the number of security incidents increased. In 2023, there were 414 security incidents on the BNB Smart Chain, marking a 44% increase from the figures gotten in 2022. Out of these 414 incidents, 315 occurred on various decentralized finance (DeFi) projects.

However, the report also highlights some positive developments. In the fourth quarter of 2023, the BNB Smart Chain reported a significant improvement, with a 64% decrease in fiat losses. The fiat losses dropped from approximately $43.7 million in the third quarter to around $15.6 million in the fourth quarter. This improvement can be attributed to a 51% reduction in hack incidents during the same period. The fourth quarter saw 86 hack incidents, compared to 130 in the third quarter.

When compared to other blockchain platforms, the BNB Smart Chain ranks 5th in total fiat losses in the fourth quarter of 2023 with just 3.81%. Ethereum was the highest with 66%, followed by Tron at 13.63%, Arbitrum at 5.33%, and Bitcoin at 4.57%.

In response to the report, the BNB Chain Core Development team expressed their appreciation for the collaborations and input from third parties. They acknowledged the crucial role played by these organizations in maintaining the integrity of the industry.

The Essence of Strategic Team Work and the Need for Continued Vigilance

In 2023, several financial technology organizations, including Tether and centralized exchanges (CEXs), coordinated efforts to retrieve and freeze stolen digital funds. Through collaboration, they successfully recovered approximately $55 million worth of stolen assets. Focusing just on the BNB Chain platform, joint actions led to reclaiming or freezing $7.3 million of hacked funds, demonstrating the significance of robust cybersecurity measures on the BNB Chain.

It is important to note that, despite the positive trends, the report emphasizes the need for ongoing vigilance. The BNB Chain team recognizes that scammers and hackers may adapt their methods, and therefore, continued efforts are necessary to maintain the security of the BNB Smart Chain. They stated:

“BSC continues to be a strong competitor, outperforming Ethereum in terms of daily active users and transactions. Even though 2023 has shown to be a better performing year in terms of the total funds lost to exploits, it is undeniable that scammers and hackers will continue to change their methods until there are stricter measures to hold them accountable.”

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