The following is a guest article by Chris Thomas, responsible for blockchain and business security in GRVT.
Although a chain is as strong as its weakest link in the cryptocurrency world, this weak link is often security. Each year, billions of dollars disappear overnight in the cryptography market due to security violations, hacks and exploits.
The recent hack Bybit, where the attackers drained more than $ 1.5 billion from Ethereum, serves another recall of these risks. While Bybit assured users that funds were secure, the incident has strengthened a fundamental problem: even the largest platforms remain vulnerable to sophisticated attacks in traditional security models.
In 2024 only, flights related to crypto crowded From 21%, totaling $ 2.2 billion, while hacking incidents increased from 282 in 2023 to 303. However, security failures go beyond simple flight – centralized systems expose user funds to risks even without direct violation.
Cryptography safety dilemma
THE collapse From FTX in 2022, which has erased more than $ 8 billion in user funds, increased concerns about childcare exchanges. The configuration of assets to the centralized entities has repeatedly led to devastating losses, whether by mismanagement, fraud or outright collapse.
But decentralization did not solve the problem either – flash loan attacks, exploits of intelligent contracts and governance vulnerabilities have drained liquidity pools in a few seconds, proving that DEX are not immune to the financial disaster.
The current dilemma highlights a fundamental question: neither traditional CEX nor fully decentralized protocols offer infallible security model. The CEX provides user -friendly interfaces but require blind confidence in a centralized entity, exposing users to child care. DEX eliminates intermediaries but introduce new challenges, such as mismanagement of private keys, vulnerabilities of intelligent contracts and slow governance responses to security threats.
No matter how much the cryptographic technology is advanced, fortunes can disappear in an instant. The question is no longer CEX against Dex – this is how security can evolve to eliminate their weaknesses. A new approach is necessary – the one that mixes the best of both worlds.
The case for hybrid safety in deffi
A hybrid safety model combines the advantages of centralized safety measures with decentralized and minimized solutions. Instead of forcing users to choose between control and convenience or safety and conviviality, hybrid exchanges aim to provide institutional quality protections while preserving self -sufficiency.
The centralized exchanges implement multi-factor authentication (MFA), cold storage, anti-white (AML) compliance and cyber-menaces insurance coverage. However, these protections have limits – the storage of cold remains a unique point of failure, the MFA can be compromised by social engineering and users must trust the exchange to act in good faith.
Decentralized exchanges are based on the management of non -guardian assets, intelligent contract audits and decentralized governance mechanisms. Although these features improve the transparency and autonomy of users, they do not eliminate the risks. The lost private keys mean that the lost funds and even the most rigorously checked contracts have been the subject of several million dollars.
A hybrid safety model fills these gaps by combining CEX protections with DEFI resilience, allowing users to take advantage of high security standards while retaining decentralization.
How hybrid safety reduces risks
Hybrid safety models seek to mitigate the risks that have led to billions of losses through cryptographic space. By combining decentralized self -sufficiency with centralized security controls, these models offer a more resilient approach to the protection of assets.
1. Auto-customy without exchange failure
Unlike traditional CEXs, which oblige users to abandon control of their assets, hybrid models apply auto-custody through solutions such as secure multi-party calculation technology (MPC). With the new approach, users can be convinced that their funds will be protected even if the exchange is compromised, which reduces the risk of catastrophic failures observed in the accidents of the past CEX.
2. Protection of withdrawal supported by an intelligent contract
Hybrid safety platforms incorporate Web2 and Web3 safety measures in the intelligent contract. Users can withdraw the withdrawal of the white list and transactions require multi-factory authentication and portfolio signatures. The hybrid safety model considerably reduces the probability of unauthorized withdrawals, even in the event of compromised connection references.
3. Order book systems prevent exploits from
One of the largest vulnerabilities in DEFI is Flash loan attacks, which operate automated market manufacturers (AMM) to drain the liquidity pools in a few seconds.
Hybrid exchanges avoid this risk by using command books outside the chain, by preventing sandwich attacks and price handling that afflict fully decentralized protocols.
4. Compliance of institutional quality with the transparency of the blockchain
While implementing traditional security checks such as suspicious surveillance of activities and withdrawal limits, hybrid security models guarantee that key aspects of governance remain decentralized. The application of intelligent contracts minimizes the risks of human intervention while maintaining transparency on blockchain.
Hybrid security: the next evolution of deffi
The idea that finance must be entirely centralized or fully decentralized is obsolete. Security should not be done at the cost of autonomy and conviviality should not require blind confidence in a single entity.
The hybrid safety model represents a logical evolution of the development of DEFI – balancing institutional guarantees with the transparency of blockchain. The CEX Purs models have demonstrated their vulnerabilities thanks to high -level collapses, while fully decentralized models are still in their infancy and vulnerable to emerging exploits.
The hybrid models indicate a change to a more robust security framework, ensuring that the exchange failures and the violations of the protocol become relics of the past. The question is no longer whether the hybrid security will define the next era of crypto, but how long the industry will accept that the old ways are no longer enough.
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