Many of the university researchers have recently revealed that smart contracts that are based on Ethereum contain ‘fake deposit vulnerability’. 

Regarding this, a study has been <a href="https://arxiv.org/pdf/2006.06419.pdf" target="_blank" rel="noopener">published</a> by the university researchers notifying that there are two types of attacks that could exploit the smart contracts of Ethereum-based tokens.
<h2>Researchers From Different Universities</h2>
Researchers from the University of Queensland, Beijing University of Posts and Telecommunications, Zhejiang University, and Peking University worked together to publish a report which explains that more than 7,000 Ethereum-based tokens in the market are vulnerable to attacks.

As per the reports, compared to ERC20 token contracts, the verification method developed by the tokens is below average.

The codebase of vulnerable tokens can easily be manipulated which helps the hackers in implementing ‘fake deposit vulnerability’ to steal millions of dollars from the users. The researchers in their report have mentioned that out of 25 million smart contracts, that are developed on the Ethereum network, only 0.36 percent have shown their source code. 

Further, the report indicated that neither the decentralized exchange nor the centralized exchange is safe for trading the tokens because they allow it ‘without comprehensive verification.’
<h2>Deposafe Tool To Test Smart Contracts</h2>
The researchers have been using the Deposafe tool to test a large number of smart contracts that are based on Ethereum.

The study published by the researchers from different Universities explained, “In this work, we have systematically characterized the fake deposit vulnerability in Ethereum. Deposafe, an automated tool is proposed to perform the detection and verification of vulnerability.”

In the study, the researchers have also discussed Deposafe’s efficiency at the time of the experiment. 

They further stated that at the time of the experiment the researchers found out how the fake deposit vulnerability was implanted and how it was exploiting the smart contracts of Ethereum-based tokens.

While analyzing the smart contracts, the researchers get to know that to manipulate 7,735 tokens by the fake deposit vulnerability, the hackers used the Type-I attack. And for 7,716 tokens, with a market cap of more than $1 billion, the hackers used the Type-II attack.
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Ethereum-Based Tokens Worth Over $1 Billion Vulnerable To Fake Deposit Exploit

Many of the university researchers have recently revealed that smart contracts which are based on Ethereum contain ‘fake deposit vulnerability’.

Jyoti is a graduate from GGSIPU and has done her PG Diploma in English Journalism from IIMC. Presently, she is working as a content writer with Agio Support Solution Pvt. Ltd. Her aim is to provide informative content about cryptocurrency and blockchain, to the tech-enthusiasts.

Ethereum-Based Tokens Worth Over $1 Billion Vulnerable To Fake Deposit Exploit

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