The systematic set-up of Decentralized Apps (DApps) regretfully makes them vulnerable to hackers who can break into the system anytime. As we know, DApps use open-source smart contracts, so it becomes easy for hackers to find a weakness in the network that lets them break into the blockchain. A smart contract audit is an excellent approach to fixing problems before it’s too late.
Before deep-diving into the security aspects of DApps, let’s understand the basics of Decentralized Applications and some of their pros and cons.
What are DApps?
A Decentralized Application (DApp) is an application that is created on a decentralized network and joins a smart contract and a frontend UI. A software program is stored on a centralized network. Based on the frontend requests, it processes, computes, and manipulates data that it gets from numerous sources.
A Decentralized Application (DApp) runs its backend code on a decentralized technology like blockchain, where it receives and processes data from the blockchain, such as smart contracts. DApps don’t have data silos or a single point of failure because a single server or organization doesn’t manage them. Due to DApps’ decentralized structure, others are free to build on top of a developer’s public source. The app is not under the administration of a single entity. Applications for Decentralized Finance (DeFi), web surfing, gaming, and social media are just a few of the many types of DApps that might have been built.
What makes DApp so unique? Have you ever wondered? Let’s find out in the next section that is about their characteristic features.
Characteristics of DApps
- Open source: The majority of users decide on all necessary changes in unison. To do this, the codebase must be accessible to all users for review.
- Decentralized storage: They offer decentralized storage. On distributed blocks, data is kept.
- Provides benefits of cryptography: They provide cryptographic algorithms. Decentralized data blocks are verified and proven to be true.
Pros of DApps
- Data integrity: Because blockchain consensus algorithms guarantee that the data recorded in a blockchain is resistant to modification, data kept on a blockchain is immutable and safe.
- Adaptable platform: The flexibility of the Ethereum blockchain allows for the rapid creation of DApps for many sectors.
- User privacy: Users can use any app-specific features without providing any personal information to DApps.
Cons of DApps
- Maintenance: DApps are challenging to manage, troubleshoot, and update since every fix necessitates the agreement of every peer in the blockchain-based network.
- Difficult to scale: Scaling decentralized networks is more challenging than scaling centralized networks.
- Network congestion: If a DApp uses excessive amounts of resources, it will back up the entire network.
How stay safe and secure?
In any blockchain project, security can be a significant issue. The first thing you can do for the DApp security is a smart contract audit; this will identify the vulnerabilities. A smart contract audit helps you discover security flaws in your smart contract and blockchain code and provide propositions on how to solve them.
Another significant step toward DApps security is penetration testing. It offers a secure and thorough attack simulation to reveal the most intricate flaws in crypto exchanges, wallets, and DApps. Some advantages of penetration testing are finding hidden vulnerabilities, assessing node vulnerabilities, testing APIs, and finding new attack paths.
When combined with a smart contract audit, penetration testing gives the best result.
Protective measures to be kept in mind
Phishing scams are a frequent DApps fraud. The social engineering strategy known as phishing is frequently used to obtain user data, such as login passwords and wallet information. To mislead a victim into providing personal information or, for example, linking their wallet to a false browser extension, the users often hand over their private data, generally through a phishing website.
- Keep your recovery phrase private: Never disclose your 12-word recovery phrase. The recovery phrase will only provide you access to your wallet.
- Research DApp websites: Verify the legitimacy of the DApp website you intend to use. Additionally, make sure you’re using the right DApp website URL.
- Keep your pace slow: Watch out for typos, misspellings, and grammar errors. Grammar and spelling errors are common among scammers.
Keeping safety and security in mind is crucial as more firms move to DApps and other cloud-based architectures. Unfortunately, cybercriminals will continue to hunt for methods to hack technology. Stay safe!
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn’t represent any investment advice or WazirX’s official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.