Smart Contract Vulnerabilities

Özgen, Mustafa Uğur
Various industries, particularly financial technologies, are adopting blockchain to create decentralized applications through smart contracts due to its popularity and features such as immutability, pseudo-anonymity, transparency, and exclusion of third parties. However, these characteristics also draw the attention of malicious actors to this domain. Smart contracts, self-executing programs operating on the blockchain, are responsible for storing and managing financial assets in many applications, such as escrow services, gambling, trading, borrowing, and lending platforms. Attacks targeting these contracts may result in irreversible financial losses, as transactions are immutable, and tracking the attacker to recover funds is challenging due to the pseudo-anonymity of blockchain. Furthermore, since smart contracts cannot be patched after deployment, taking action to mitigate incidents is not practically easy. As a result, smart contract security is a crucial topic to prevent irremediable consequences of incidents. This research examines smart contract implementations on the Ethereum blockchain, common vulnerabilities, exploitation methods with real-world examples, and precautions to avoid incidents.
Citation Formats
M. U. Özgen, “Smart Contract Vulnerabilities,” M.S. - Master Of Science Without Thesis, Middle East Technical University, 2024.