Huobi Research: The DeFi mining boom highlights the security issues of smart contracts, so be wary of contracts without multi-signature mechanism

With the recent upsurge of DeFi mining, there have been many smart contract migration or security incidents. Huobi Research pointed out that smart contracts on Ethereum are less flexible, and the deployed smart contract code cannot be upgraded later by being covered. Therefore, when bug fixes or function upgrades are required, functions and data migration can only be performed by means such as issuing new contracts, such as YAM, SUSHI and other projects. But in the EOS network, the upgradeability of smart contracts is a function clearly stated in the white paper. The administrator of the contract can overwrite and upgrade the contract as easy as deploy a contract, which means that the administrator has the right to take the fund in it away by upgrading the contract code, etc. The funds in the contract mean extremely high financial risks to investors. However, it is worth noting that in the EOS network, it is also possible to set multi-signatures and other means to limit flexibility and avoid centralized control. Investors can make simple judgments on the the degree of safty of the contract by whether the contract is multi-signatured. All in all, in the blockchain world, the increase in flexibility is often accompanied by increased difficulty in reasonable allocation of authority and new security risks.