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DeFi Vulnerabilities [2]
In the previous post, we talked about the traditional software exploits that exist in the realm of smart contracts and have a reputation of being the root cause of some big DeFi hacks in the recent years. In this article, we dive deeper into the DeFi landscape. To start, we’ll familiarize ourselves with key terms…
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DeFi Vulnerabilities [1]
Decentralized Finance (DeFi) has emerged as a revolutionary concept in the blockchain and cryptocurrency world, aiming to create a financial system that is open to everyone and operates without any central authority. However, this innovation comes with its own set of vulnerabilities, which have been exploited in various incidents over the years. This set of…
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Measures of Decentralization
Measures of decentralization play a crucial role in understanding and assessing the distribution of power and resources within various systems, such as Decentralized Autonomous Organizations (DAOs), blockchain networks, and economic structures. In this article, we have explained three indices that have been used to measure decentralization. Gini Coefficient The Gini coefficient, or Gini index, is…
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How to Calculate Gini index from Lorenz curve
Calculating the Gini index from a Lorenz curve involves a few steps of geometric interpretation. The Gini index is essentially a ratio of the area between the Lorenz curve and the line of perfect equality to the total area under the line of perfect equality. Here’s how to calculate it: Draw or Identify the Lorenz…
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Web3 Governance, an introduction
Decentralization in governance has been a concept of interest across various epochs, from ancient to modern times. Traditional governance systems have evolved significantly, reflecting the social, economic, and technological contexts of their times. In ancient civilizations, governance often revolved around centralized figures like monarchs or emperors. However, elements of decentralization existed, such as the Athenian…
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Ethia Project
July 2023 Update: Currently, I am in the process of utilizing ChatGPT to enhance the search engine’s performance. Stay tuned. Over the past decade, there has been a significant growth in computational power, digital storage capacity, and innovative network protocols. This technological progress has led to the accumulation of vast corpora of written documents on…
