Few weeks ago, EOSBet online casino was hacked and they lost over 44,000 EOS (about $240,000) to this hack. The hacker took advantage of a glitch in the EOS smart contract software and extracted EOS from the DApp’s operational wallet. The hacker was able to place bets on the platform without transferring EOS to the smart contract and for winnings, he got paid in EOS from the smart contract while losing nothing in the case of losses. EOSBET admitted that despite multiple audits before the attack, “there was still vulnerability in the smart contract”.
EOSBet had a another hack at the end of august when administrators were alerted to the theft of storage space resources through the EOSBet smart contract which revealed several flaws in the EOS code. This resulted in the developers having to freeze their DApp temporarily to minimize damage.
Another decentralized betting platform, DEOS Games also reported suffering a hack attack on their platform to which they lost about $23,000 in the process. They received a malicious contract exploit on their smart contract which allowed $1000 to one user 24 times just within an hour!
Interestingly, the two casinos have similar sentiments regarding these hack attacks on their smart contract. They both say it is a good stress test of the vulnerability of their smart contract and that significant improvements have been made to prevent future attacks.
EOSBet had a another hack at the end of august when administrators were alerted to the theft of storage space resources through the EOSBet smart contract which revealed several flaws in the EOS code. This resulted in the developers having to freeze their DApp temporarily to minimize damage.
Another decentralized betting platform, DEOS Games also reported suffering a hack attack on their platform to which they lost about $23,000 in the process. They received a malicious contract exploit on their smart contract which allowed $1000 to one user 24 times just within an hour!
Interestingly, the two casinos have similar sentiments regarding these hack attacks on their smart contract. They both say it is a good stress test of the vulnerability of their smart contract and that significant improvements have been made to prevent future attacks.
Basically, what they simply admitted to is the vulnerability of smart contract casinos. Most blockchain enterprises, especially smart contract casinos promise security on their platform but that has not been the case. The ethereum DAO hack where an attacker used the vulnerability of the contract to drain 3.6million Ethereum as well as the parity wallet bug which is not the first and probably not the last was used by a hacker and a total of 513,000 Ethereum was lost in that process.
However, smart contracts are not limited to ethereum. Other smart contract platforms like EOS and LTC allow developers to run applications on their blockchain. As a result numerous ICO’s have been launched on these platforms to create casinos and online poker rooms. EOS names itself as an improvement on the Ethereum smart contract platform and one would expect that an improvement would be more secure and immune to attacks but obviously, that is not true. EOSBet and DEOS Games are all built on the EOS blockchain and as noted earlier, the hack attacks prove that smart contract casinos are vulnerable and insecure unlike they claim. Why risk real money on smart contract casinos that can be easily hacked when centralized betting platforms work very fine?
DECENTRALIZATION FUST FOR THE SAKE OF DECENTRALIZATION?
In some countries, gamblers face opposition from the government and the governmental authorities were able to force centralized financial system. Then cryptocurrency emerged and solved the problem for gamblers. Cryptocurrencies like BTC, ETH and LTC, etc has giving gamblers an uncensorable payment network.
Because smart contract platforms allow the creation of decentralized applications on their blockchain, many have taken advantage of this feature to build casinos and poker rooms on the blockchain while issuing out their own tokens which is absolutely unnecessary considering the fact that one can gamble at crypto casinos like FortuneJack and deposit or withdraw using any one of dozens of popular cryptocurrencies that are already available.
Most casinos “built on the blockchain” are get rich quick schemes for founders who are only interested in running an ICO.
In conclusion, smart contracts are still very vulnerable and it is much safer to gamble on centralized casinos (like FortuneJack) that accept many cryptocurrencies instead of risking money on smart contract casinos which are subject to hacks.
However, smart contracts are not limited to ethereum. Other smart contract platforms like EOS and LTC allow developers to run applications on their blockchain. As a result numerous ICO’s have been launched on these platforms to create casinos and online poker rooms. EOS names itself as an improvement on the Ethereum smart contract platform and one would expect that an improvement would be more secure and immune to attacks but obviously, that is not true. EOSBet and DEOS Games are all built on the EOS blockchain and as noted earlier, the hack attacks prove that smart contract casinos are vulnerable and insecure unlike they claim. Why risk real money on smart contract casinos that can be easily hacked when centralized betting platforms work very fine?
DECENTRALIZATION FUST FOR THE SAKE OF DECENTRALIZATION?
In some countries, gamblers face opposition from the government and the governmental authorities were able to force centralized financial system. Then cryptocurrency emerged and solved the problem for gamblers. Cryptocurrencies like BTC, ETH and LTC, etc has giving gamblers an uncensorable payment network.
Because smart contract platforms allow the creation of decentralized applications on their blockchain, many have taken advantage of this feature to build casinos and poker rooms on the blockchain while issuing out their own tokens which is absolutely unnecessary considering the fact that one can gamble at crypto casinos like FortuneJack and deposit or withdraw using any one of dozens of popular cryptocurrencies that are already available.
Most casinos “built on the blockchain” are get rich quick schemes for founders who are only interested in running an ICO.
In conclusion, smart contracts are still very vulnerable and it is much safer to gamble on centralized casinos (like FortuneJack) that accept many cryptocurrencies instead of risking money on smart contract casinos which are subject to hacks.
Dice is back online! Thanks for your patience during this period of downtime. Our official statement on the transfer hack that occurred can be found here: https://t.co/BfmiXCRzA7
— EOSBet (@EOSBetCasino) 15 de septiembre de 2018
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