Skynet, a leading force in the Web3 world, addresses the concerning issue of centralization risks by introducing an upgraded interface featuring a centralization overview widget and an extensive range of security insights. With a focus on safeguarding investments and combating rug pulls, Skynet is at the forefront of securing the Web3 landscape, empowering users to make informed decisions and stay ahead in the rapidly evolving space.
A new CertiK series giving users bite-size tips and info to stay informed and safe in the #crypto space. Episode 8 What is Centralization Risk? Learn what #centralizationrisk is, how it works, how you can minimize your risk with CertiK's auditing, and more all under 2 mins!
Centralization risks are vulnerabilities that can be exploited both by malicious developers of a project as well as outside attackers. They can be taken advantage of in rug pulls, infinite minting exploits, and other types of attacks.
In token minting contract exploits, if someone gains access to the private key of the contract, they can mint as many new tokens and send them anywhere they’d like.
With rug pulls, project founders can sell all of the tokens they hold - draining the liquidity from a decentralized exchange. Other rug pulls involve founders stealing tokens from a presale lockup contract. Rug pulls thrive on decentralized exchanges because they allow free listings of new tokens with no requirement of a smart contract audit.
Smart contract audits are a necessary first step in identifying centralization risk. CertiK smart contract audits highlight all centralization risks by identifying 5 types of issues: Critical, Major, Medium, Minor, and Informational.
Users can be confident in the security of a project that follows CertiK’s recommendations, such as implementing timelocks and multi signature custody solutions.
To learn more about centralization risks, visit CertiK.com/resources.