‘Biggest Risk in DeFi’ Seen Coming From Backdoor Software Threat

The automated software programs that power much of the DeFi, or decentralized finance, activity on the Ethereum blockchain appear to be less tamper resistant than advertised.

In recent years, most of these “smart contracts” have evolved to include a back door, or a way to change them, sometimes in drastic ways, according to a report from researcher Coin Metrics. Most have so-called admin keys, providing access that can allow someone to change crucial features, raising the risk of hacks and even machinations by insiders.

“We call this the biggest risk in DeFi right now,” said Lucas Nuzzi, head of ...