What Is a ‘Reentrancy Attack’?
A reentrancy attack occurs when an external malicious contract repeatedly calls back into the victim contract before the first execution is complete, draining funds. The most famous example is the DAO hack.
Modern smart contracts use security patterns like the 'Checks-Effects-Interactions' pattern to prevent this.
Glossar
Malicious Contract
Threat ⎊ A malicious contract represents a smart contract intentionally deployed with hidden functions or deliberately flawed logic designed to execute unauthorized financial operations, posing a severe threat to capital security within decentralized derivatives markets.
Victim Contract
Target ⎊ A victim contract refers to a smart contract that contains a vulnerability exploited by a malicious actor.
Reentrancy Attack
Exploit ⎊ The reentrancy attack, a critical vulnerability in smart contracts and financial systems, leverages recursive function calls to circumvent intended security protocols.
Security Patterns
Framework ⎊ Security patterns are reusable solutions to common design problems in smart contract development, providing a framework for building robust and resilient decentralized applications.