Relying on Centralized Databases Makes Dapps Vulnerable to Data Tampering Says Nate Holiday

Decentralized purposes (dapps) are susceptible to information tampering as a result of they “are largely built on top of centralized databases and services,” the CEO of Space and Time Nate Holiday has stated. The CEO additionally shared an inventory of information tampering dangers which he stated are particular to information warehouses.

Companies Relying on Centralized Databases and Services

According to Nate Holiday, the CEO of decentralized information warehouse Space and Time, the current draining of funds on the defi (decentralized finance) lending platform Lodestar Finance, and Axie Infinity’s Ronin community attack earlier than that, are key occasions reminding customers that decentralized apps (dapps) are susceptible to information tampering. Although he concedes that many dapps are powered by blockchain, Holiday however claimed many of those purposes “are largely built on top of centralized databases and services.”

As just lately reported by Bitcoin.com News, the hacker behind the siphoning of $6.9 million from Lodestar Finance had tampered with “the exchange rate of the plvGLP contract.” The hacker then adopted this up by supplying the plvGLP collateral to Lodestar and borrowing all of the out there liquidity.

Commenting on the current information tampering incidents, Holiday stated dapps, similar to centralized enterprise organizations, can have a single level of failure which makes them susceptible to hacks. This in flip diminishes their attraction to customers, Holiday argued.

“Data tampering can have catastrophic results for dapp customers. For instance, if a decentralized finance software is leveraging a centralized database, information tampering. In the case of a decentralized social media platform, information tampering may result in dangerous impersonations or the unfold of false or deceptive info,” Holiday defined to Bitcoin.com News.

Single Point of Failure

Meanwhile, the Space and Time CEO additionally shared an inventory of information tampering dangers which might be particular to information warehouses and these embrace the hacking of centralized database techniques and gaining unauthorized entry. The use of SQL injection methods to govern information, and tampering with the database construction or schema are the opposite dangers.

When requested to elucidate why he advocates for decentralized blockchain-anchored information options, Holiday stated:

“Decentralized architectures have no single point of failure, and blockchain anchoring ensures that the data is secure and immutable. This architecture provides an ideal solution for decentralized applications that require trustless interactions, such as those employed by financial services or supply chain management.”

While he’s not anticipating a sudden change to decentralized information companies, Holiday insisted that “companies are becoming increasingly aware of the need to integrate blockchain data into their business models.” To support such firms, the CEO stated his firm helps “enterprises to onboard data from the centralized databases powering their businesses.”

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