Learn Concept: Ethereum's 'Flash Loan Attack'

By: Eliza Bennet

Ethereum, one of the widely-known cryptos, presents unique programming opportunities, and sometimes challenges, owing to its smart contract feature. Recently, the concept of a 'Flash Loan Attack' has become eminent in Ethereum based DeFi projects. The flash loan attack is an uncollateralized loan where the entire borrowing and returning occurs within the same blockchain transaction. If the conditions are not met, the transaction gets nullified. This smart contract feature is being exploited by attackers, who manipulate the prices causing the protocols to count losses. For an in-depth understanding, you may want to explore more about this decentralized finance (DeFi) ecosystem and how to secure ethereum protocols from the vulnerabilities.