What the dApp: Can We Really Trust dApps in 2022?
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Decentralized applications, known as dApps, have emerged as one of the hottest trends in the cryptocurrency world, bringing with them the promise of a freer internet with, financial inclusion, true anonymity and no censorship.
dApps are without doubt an important step on the way to creating a fully decentralized web, offering a number of use cases around banking the unbanked, investing, borrowing and more
Unfortunately, like everything crypto-themed, the growing popularity of dApps means they’ve also become a very useful vehicle for scammers who’re only too keen to empty the wallets of unsuspecting crypto enthusiasts. Reports of people falling victim to dApp scams abound of late, with the bad guys coming up with some ingenious methods to trick people into giving them access to their crypto wallets, posing as customer support staff among other tricks. It’s a growing phenomenon too, with recent research from the blockchain analytics firm Elliptic finding that DeFi fraud hit USD 10.5 Billion in 2021.
The easiest way to lose money is to fall victim to what’s known as a “malicious dApp” that has been designed to trick users into thinking it serves a genuine purpose. The problem is they’re entirely fake, and the moment a user connects their crypto wallet to it, their funds will be gone forever.
Other hackers try to exploit genuine apps too. Some dApps, especially new or less popular ones, may have issues with their code that allows hackers to find vulnerabilities and steal user’s funds. Another big problem is “phishing dApps”, which are designed to look and feel exactly like a genuine
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