Crypto-gaming – “Unsatisfactory” security in the face of inevitable big hacks

The recent hack suffered by the Solana network is just another reminder: the cryptocurrency industry is exposed to malicious attacks. Just look at the number of exploits DeFi regularly suffers. And the ever-increasing sums diverted to the benefit of unscrupulous little crafty ones, or more organized groups. The latter are following the successive migrations of hordes of investors and liquidity providers to pump all the funds at the earliest opportunity. And, according to some cybersecurity specialists, the next prime target could be the crypto-gaming sector, with a special mention for gaming to earn (P2E).

The cryptocurrency industry absolutely cannot ignore the security issues that constantly threaten its integrity. With the main focus right now, decentralized finance (DeFi) and stolen tens of millions of dollars that end up accounting for billions of dollars in losses by the end of the year. A reality whose origin very often boils down to a certain lightness on the part of the developers in charge of compromised projects. As in the recent case of the Solana network, alleged victim of the questionable management of the private keys of users of the Slope wallet.

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A migratory phenomenon, which moves with investor funds in the field of cryptocurrencies. And one of whose goals that have become historic is none other than the sidechain Ronin (RON) of the emblematic play-to-earn game Axie Infinity (AXS, SLP). With an attack whose sad record points to over $ 600 million in losses last March. But, according to Hacken’s structure that specializes in blockchain cybersecurity auditing, this would be just the beginning of something much worse coming for the crypto-gaming industry.. Explanations …

Play to earn – Security deemed “unsatisfactory”

First of all, it seems important to specify that this Hacken facility preaches for its parish. And the risks mentioned in his latest report partly justify resorting to his services to remedy them. However, the progress of cryptocurrency games is a cause for concern for investors. Especially considering that the trend is sometimes more speculative than construction in the cryptocurrency sector, all sectors combined.. A fact noted by Hacken’s specialists who summarize it by putting “advantages before safety”. Because on this last critical point, the financial statements drawn up are simply alarming.

GameFi projects […] they don’t follow even the most essential cybersecurity recommendations, leaving malicious actors with many entry points for attacks. “

Hacken

In fact, the crypto-gaming (or GameFi) sector often integrates the use of NFT tokens. But also the implementation of native cryptocurrencies in order to allow the proper internal functioning of its multiple projects and their ecosystems. With, in some cases such as Axie Infinity, the use of bridge to be able to claim cross-chain ambitions. Many elements that contribute to the innovative nature of this digital economy, but also an accumulation of weaknesses according to the Hacken report. Because the data collected by the CER.live specialized structure seem unequivocal: there are serious gaps in cybersecurity.

GameFi – A D safety rating

Because the scores assigned to the projects subjected to this analysis are simply chilling. Indeed, Of the 31 GameFi industry cryptocurrencies studied, none received the highest AAA security rating. And, at the same time, 16 of them cannot claim more than a score established in letter D. This is largely due to the fact that no serious verification has been carried out. Or the fact that no bug bounty pays off for the identification of defects by whitehat hackers, as is only the case with Axie Infinity and the Aavegotchi (GHST) project of the Aave (AAVE) protocol. And finally, no insurance coverage in case of hacking and loss of its users’ funds. True, for what …

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Another important point, only 5 of the projects studied in this report actually obtained a real platform audit. That is to say a protection – certainly entirely theoretical – that allows to detect potential security breaches in all their ecosystems. A list where there are games to earn Aavegotchi (again), The Sandbox (SAND), Radio Caca (RACA), Alien Worlds (TLM) and DeFi Kingdoms (JEWEL). This represents the rather worrying ratio of 1 in 6 projects in the list of those tested during this security scan.

And the financial statements drawn up by the Hacken structure are simple and unambiguous. As the crypto gaming industry gains visibility, the risks of attacks will inevitably become more significant and critical.. Especially if the projects do nothing to strengthen their ability to deal with these kinds of setbacks which are more likely than merely hypothetical. Because, in this case, the emergence of large-scale hacks comes down to a simple matter of time …

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