How Does the Security of the Underlying Blockchain Affect the DeFi Platform's Smart Contract Risk? ⎊ Path

How Does the Security of the Underlying Blockchain Affect the DeFi Platform’s Smart Contract Risk?

The DeFi platform's security is fundamentally dependent on the underlying blockchain's security. If the blockchain itself is successfully attacked (e.g. a 51% attack), transactions can be reversed or censored, potentially invalidating the smart contract's state or leading to double-spending, regardless of the contract's code quality.

How Does the EVM’s Transaction Atomicity Relate to This Attack?

What Is the Difference between Proof of Work and Proof of Stake Consensus Mechanisms?

Why Must State Updates Occur before External Calls?

What Are the Security Trade-Offs between PoW’S Energy Expenditure and PoS’s Capital-Locking?

Can SPV Be Used to Verify the State of a Smart Contract?

What Is the Primary Difference between a ‘View’ Function and a ‘State-Changing’ Function?

How Do State Changes in a Smart Contract Get Recorded on the Blockchain?

What Consensus Mechanism Relies Heavily on the Integrity Provided by the Merkle Root?

Glossar

Underlying Blockchain

Ledger ⎊ The underlying blockchain, within the context of cryptocurrency derivatives and options trading, functions as an immutable, distributed ledger recording all transactions and state changes related to the derivative contract.