Cardano has been bearish lately due to the delisting of ADA from the eToro exchange and the FUDs of the crypto community. Cardano CEO recently unveiled the advantage it has over other smart contract networks.
Cardano CEO Points out MonoX Finance Hacking As a Reason
Charles Hoskinson, CEO of Cardano’s Development Department Input Output Hong Kong (IOHK), pointed out that the recent hacking of the DeFi platform MonoX Finance is one of the reasons why Cardano is superior to Ethereum and other smart contract blockchains.
MonoX reportedly lost $31 million on Wednesday. The company reported that hackers exploited a vulnerability in the software used to design smart contracts so that they could use the same tokens in input and output transactions.
The hacker uses the platform’s native MONO token as tokenIn and tokenOut, and the specification should be to enter one token and extract another. This allows hackers to increase the price of the withdrawn tokens and continue to exchange them for other tokens on the Ethereum and Polygon networks. The lost tokens include 18.2 million Wrapped Ethereum, 10.5 MATIC tokens, 2 million WBTC and a small amount of Wrapped Bitcoin, Chainlink, Unit Protocol, Aavegotchi and Immutable X tokens.
Hoskinson pointed out that using a more secure programming language could help prevent hacking attacks. He pointed out that Cardano’s bespoke smart contract programming language Plutus is one of the advantages of the blockchain network as it gives developers the ability to write great and safe code.
About the Cardano’s Plutus
Plutus is a programming language for writing smart contracts on Cardano. IOHK’s blog describes it as “a full Turing language written in Haskell, while Plutus Smart Contracts are actually Haskell programs” and “leading purely functional programming languages”.
The programming language is said to have significant security benefits because it can easily prove that the smart contract is correct and that no problems arise. It does this by allowing on-chain and off-chain code to be written in the same language, which allows the Plutus toolchain to be automatically disconnected for deployment.
Other Critics of the Current DeFi Protocol
Hoskinson is not the only one to criticize the lax platform security of the MonoX developers. Dan Guido, CEO of Trials of Bit, a blockchain security consultancy, said hacking attacks are common in DeFi projects because many developers haven’t done their homework.
Guido stated that these types of attacks are common with smart contracts because many developers do not define security properties for their code.
The expert also pointed out that developers who want to bring products to market often ignore the security measures of the programming language they use.