I can no longer keep track of all the DeFi hacks. They seen to happen at the same speed as the underlying chain.
A lot of the hacks happen due to bad interactions between DeFi components. For instance, a component like Uniswap/Sushi/Compound/etc think a certain routine, provided by an ERC-20, does something, but that routine ends up attacking the calling component instead.
At its core, this is a problem stemming from inability to reason about code, specifically code that implements basic functionality such as assets, wallets, multisigs, etc.
Avalanche doesn't fix all these problems, but it does fix every problem where the erc-20 attacks another contract. That's because assets are "first class abstractions" in Avalanche.

In contrast, there's no such thing as an asset in Ethereum, other than ether. Everything else is custom code. ERC-20's are all code. You cannot count on them doing or not doing certain things. At least, not without analysis, and there are no tools for that.
At least, no tools that are easily accessible on chain to other smart contracts. Uniswap cannot examine a proposed erc-20 implementation and decide if it is safe to integrate, and therefore the new coin can become an attack vector, as we saw last spring.
Tezos takes a unique approach here: everything is also just code in Tezos, but it's all in a functional language that's amenable to analysis.
In Avalanche, assets are supported by the underlying system. You know exactly what the "transfer some Xcoin" function will do, because it's not written by a third party.
This isn't as flexible as everyone writing their code willynilly, but it is absolutely predictable. Different components know exactly what they can expect from basic functions.
Hope that this characterization is useful to those looking for a DeFi/smart contract platform. ETH is a great place for experimentation, Tezos is great for analysis, and Avalanche is great if you want an easy, predictable foundation.

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More from @el33th4xor

17 Nov
Crypto is witnessing a watershed moment. For the first time, it is being considered an enduring, fundamentally new asset class by mainstream.

#Bitcoin is leading the rally right now, with new money coming in from funds that allocate a small percent of their holdings to crypto.
This is exactly as predicted. The Paypal announcement and the Square disclosures, for example, are clear indicators of this trend. The stage was set by the economic stimulus packages, in the US and abroad, which first went into stocks, then started looking for alternative assets.
Stocks prices currently bear little resemblance to reasonable estimates of the "future money flows from the economic activities of the underlying companies." In that sense, stocks came to approximate crypto by decoupling from fundamentals, and crypto started looking attractive.
Read 14 tweets
14 Oct
I cannot believe that Crypto Twitter is still hopelessly confused about "weak subjectivity."
Every now and then, a community convinces itself of a wrong thing, or worse, it adopts a mental framework that is hopelessly confused and leads to brain fog. This is one of those instances.
Remember how CT thought, for the longest time, that PoW and PoS were two consensus protocols, and that they were the two kinds of consensus protocols that existed?

Read 20 tweets
29 Sep
Today marks the first week anniversary of the birth of #Avalanche. I want to quickly recap where we are, what we’ve been up tin that first week, and what we’re planning to do.
With Avalanche, we’ve innovated at every level of blockchain networks. Foundationally, with a breakthrough in consensus protocols, and then continuing, layer-by-layer, to evolve areas like network and virtual machine models that other projects had skipped over.
In doing so, we built the first smart contracts platform that delivers sub-second finality, supports the entirety of the Ethereum virtual machine and development toolkit, and enables up to millions of independent validators to participate as full, block-producing nodes.
Read 12 tweets
17 Sep
September 21st will mark the beginning of a new era for cryptocurrencies, blockchains, and decentralized applications, as we launch @AvalancheAVAX to the world: medium.com/avalabs/ready-…
Avalanche aims to follow in Satoshi’s footsteps to have the same, defining impact as we stand on the cusp of a new decade. It will create a market structure driven by velocity, efficient use of capital, and innovation in new products & services that aren't possible today.
It is the first smart contracts platform that delivers sub-second transaction finality, supports the entirety of the Ethereum virtual machine and development toolkit, and enables up to millions of independent validators to participate as full, block-producing nodes.
Read 4 tweets
11 Sep
Everyone is talking about the sushi drama.

To me, the whole saga simply underscores just how young and immature the space is.
A simple Litmus test for all coin news is simply the following:

Is this thing that's getting a lot of airtime taking the space forwards, backwards, or down into a ravine?
It's pretty clear that Sushi brought little value and hollowed out a bit of Uniswap, a great project, without actually making the space tangibly better. Its one benefit may be to underscore the need to protect one's intellectual property.
Read 5 tweets
11 Sep
This is how many blockchain projects work: lots of hype, lots of technical-sounding claims, partnerships with companies too embarrassed to say they were duped, and no actual working novel system, just smoke and mirrors around old tech.
They literally used a concealed cable to pull a non-working truck. The central tech didn't exist, it was just a rebranded gas engine.
Meanwhile, we have seen crypto projects that just rebranded old protocols from 1999 as if they had a new invention. We've seen centralized coordinators, equivalent to a concealed wire. Best of all, we are beginning to see systems that don't even tolerate Byzantine faults!
Read 5 tweets

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