Ensuring robust security of the underlying blockchain and smart-contracts is paramount to build trust within the market.
![[생글기자 코너] How to address challenges of decentralized finance](https://img.hankyung.com/photo/202312/AA.35257424.1.jpg)
Despite its potential, DeFi needs to overcome several challenges in order for it to fully establish itself to the public. With the absence of centralized authorities, there’s an increasing risk of smart contract vulnerabilities and hacking incidents that can result in significant financial losses. Ensuring robust security of the underlying blockchain and smart-contracts is paramount to build trust within the market. Furthermore, interoperability between different blockchain networks needs to be resolved to create a seamless and interconnected ecosystem. As the technology continues to evolve, addressing these challenges will be essential in fully realizing the potential of decentralized finance and the broader web3 paradigm.
김예림 생글기자(한영외국어고 2학년)