PeckShield Report: EOS Ecosystem Sees 400,000 EOS Loss over Consistent Security Glitches

As the EOS hacking saga continues, new report by PeckShield.Inc discovers over 60% dormant accounts on EOS blockchain as well as 400,000 EOS loss.

Still trying to weather through its recent decentralization dispute, EOS faces another storm as the decentralized apps based on its blockchain records over $800,000 loss. Reports from cybersecurity company, PeckShield, cites the constant security glitches on the network as a reason for the loss. The EOS blockchain was built with the aim of being a public network upon which developers can launch their applications. Though EOS has had to struggle through the constant price storm in the crypto market, the amount of DApps launched and account activities had grown simultaneously. The account activities, according to data collected by PeckShield, had risen up to 500,000 with over 200 DApps launched on the platform. However, of the 500,000 accounts, PeckShield pointed out that only 37% of the accounts were active with 24% of the 37% controlled by specific groups.
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This according to senior security expert at PeckShield, Shi Huaguo, could be a reason for the constant breaches. Shi explained that the controllers of the account, though cannot be narrowed down, were likely “click farms” and “bounty hunters”. He pointed out that though these phantom accounts haven’t had the impacts on the growth of DApps or the trading volume, they increased the vulnerability and susceptibility of the EOS network to attacks.

EOS Network Attacks due to its Vulnerability

According to the blockchain security company, DApps on the EOS network have over 27 security attacks over the last five months resulting in the 400,000 EOS loss.Experts believe that this had more to do with the network’s vulnerability than a minor bug on the network.
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As pointed out by security expert, GuoYonggang, the EOS network is only susceptible to the attacks because there were various loop-holes on the network. He explained that with the attackers discovering these loop-holes,they were over time able to get these vulnerabilities to work in their favor. Moreover,the report cited the various gambling games on the network as a gateway for these attacks. According to Peckshield, these loop-holes were generated by organized group of accounts in the random number generator of games like EOSBet and EOSWin.
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The fact that EOS, since integration, has been dubbed the Ethereum Challenger in various circles has not gone unnoticed by commentators. As previously reported, BitMEX revealed that the EOS ecosystem still had a long way to go in becoming a viable Ethereum challenger. Furthermore,with these security glitches and noting that the EOS blockchain works with the Distrubuted Proof-of-Stake protocol, experts think this could affect blockchain built upon the same protocols.