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Learn more about smartBCH- risks to face in projects built in the side-chain
While smartBCH is without a doubt one of the best things that could happen in the Bitcoin Cash ecosystem it is also necessary to be aware of the risks when using it,
Not the side-chain, but the projects built on it...
It should be noted that these risks do not come from the implementation of the side-chain but from those involved in the assimilation process, while developers work to keep the network safe and ready for use, others work to exploit their 'blind spots' and thus have a way to hack smart contracts . This is a risk that we have to be aware that it exists and it can happen at any time, after all hackers are always on the lookout.
SmartBCH opens up unprecedented opportunities in the Bitcoin Cash ecosystem, making the side-chain a direct competitor to Ethereum, Binance Smart chain (BSC) Polygon etc, and also inheriting certain problems that these blockchains are already facing on a daily basis.
Using the SmartBCH network projects forked from ETH can be deployed on the side-chain and people benefit from lend, borrow and trading. Not only that, investors can also farming, participate in a yield farm or even use Smart Contracts that enable them to lock tokens and unlock them right after payment, meaning a lot can be done in the SmartBCH side-chain.
But, it is necessary to be aware that projects can be 'fake' and at any time disappear and take all the amount invested in it. In addition, the 'friends of others' hackers are also there to exploit vulnerabilities and attack the contracts that manage these platforms. It is necessary to keep in mind that there is no such thing as a 'free risk' business and also to do an exhaustive research on where to put the value so that tomorrow will not come crying with regret.
Smart contracts must be inspected and audited to know their status and thus avoid damage caused by lack of attention to security, so it is always important to update and avoid this situation. And not only that, projects have to encourage the 'bug bounty' to allow whiteHackers to participate and thus disclose detected failures and consequently be able to resolve them.
This is an advice that always goes down well when it comes to all types of investment and here it doesn't change the picture, after all SmartBCH will also be a great showcase of projects,some credibles and other ones trying their luck in the market.
If you have noticed in the decentralized world of finance (DeFi) many projects start well and do everything to get the attention of investors, but at some point they change their behavior or get hacked causing them to lose huge sums of millions of dollars in cryptocurrencies. It is always good to exercise caution when dealing with smart contracts and do a thorough research if possible until you know the background of its developers.
Of course this is simply form of protection but it does not guarantee that they are not 'doubtful conduct' or a time bomb just waiting to explode in investors faces, the best is always for values that we can 'accept losing on investments ' never take out loans to put into decentralized projects. Some time ago I followed a student on the Ethereum forum who decided to invest all his tuition value in a protocol and some time later the same was attacked making thousands of victims and taking with it millions of dollars in assets, fortunately the 'hacker' returned 50k to student address.
The smartBCH side-chain project is a network that will definitely Boost Bitcoin Cash blockchain, opening a new stage in the history of DeFi investments with reputable projects parading their class but will also attract people of very bad conduct. It is necessary to understand this as not to cry over spilled milk.
The side-chain security is undoubtedly in charge of a highly qualified team, creating opportunities for projects to be developed on it. I am aware that smartBCH is a booster for Bitcoin Cash but never forget to invest consciously, stay alert and let's all enjoy the benefits that the side-chain offers,
This is a new stage in Bitcoin Cash history where the future will be bright for everyone involved, and remember SAFETY FIRST.
Disclaimer: the article is intended to deepen knowledge about SmartBCH and some risks dealing with products building on it, nothing to denigrate the side-chain, after all knowledge never occupy space and not a financial advice.