About 34,200 current Ethereum smart contracts worth $4.4 million in ether are vulnerable to hacking due to poor coding that contains bugs.
That’s the alarming conclusion five researchers from the U.K. and Singapore posited in their report entitled “Finding The Greedy, Prodigal, and Suicidal Contracts at Scale.”
Smart contracts and their codes exist in a decentralized blockchain network. Blockchain is the technology that undergirds bitcoin. (See also: Understanding Smart Contracts.)
While smart contracts have been hailed for their ease of use and relatively lower costs, they are vulnerable to cyberhackers. In 2017, $500 million was lost or stolen due to poorly coded contracts, and one-half of those involved ethereum, Bitcoin.com reported. See also: (Second Major Ethereum Hack In a Week Leads to $34 Million Theft.)
“We’re dealing with applications that have two very unpleasant traits: They manage your money, and they cannot be amended,” the report’s co-author Ilya Sergey, an assistant professor of computer science at University College London, told Motherboard.