Decentralized data manipulation is a real concern for applications (dapps). “They are largely built on centralized databases and services,” Space Time CEO Nate Holiday warned. The CEO provided a list of data manipulation risks associated with data warehouses.
Companies Rely on Centralized Services and Databases for Their Success
Nate Holiday, CEO of the decentralized data storage Space Time, pointed out the recent removal of funds from the defi (decentralized financing) lending platform Lodestar Finance, as well as the attack on Axie Infinity’s Ronin Network, as examples of data manipulation. He emphasized that dapps are not all created equal and that they are largely reliant on centralized databases.
As Bitcoin.com News reported, the hacker behind the siphoning off of $6.9million from Lodestar Finance had manipulated “the exchange rate of the plvGLP contract.” The hacker accomplished this by providing plvGLP collateral. All that was required was that you could borrow all liquidity.
Commenting on these incidents, Holiday said that data manipulation can have serious consequences for dapp users. “For example, if a decentralized financial application takes advantage of a centralized database, data manipulation could render the application useless. In the case of a decentralized social media platform, data manipulation could lead to harmful impersonations or the spread of false or misleading information,” Holiday explained.
Eliminating Single Points of Failure
The Space Time CEO also shared a list of potential data manipulation risks for data warehouses. These include hacking into central database systems, SQL injection techniques for manipulating data, and tampering or altering the schema or structure of the database.
When asked to explain why he prefers decentralized solutions for data, Holiday said: “Decentralized architectures do not have a single point of failure, and the blockchain anchor ensures that data is secure and immutable. This architecture provides an ideal solution for decentralized applications that require trustless interactions, such as those used by financial services or supply chain management.”
Not predicting a rapid shift towards decentralized data services, Holiday stated that “enterprises are becoming increasingly aware of the need to integrate blockchain data into their business models.” According to the CEO, his company supports such businesses and he is happy to help them. “Companies pull data from the centralized databases that power their businesses.”
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