Author
Dr. Matteo Ricci
Assistant Professor, Department of Computer Science and Blockchain Innovation,
University of Rome, Italy
Abstract
Decentralized finance systems (DeFi) have transformed international finance at a very rapid pace by enabling peer-to-peer transactions, open access to capital, and algorithmic financial services without involving traditional intermediaries. With this transformational change come perpetual cybersecurity issues that challenge the integrity and legitimacy of the decentralized system. This paper explains the latest DeFi system vulnerabilities on the rise, including smart contract flaws, governance exploits, oracle manipulation, and cross-chain interoperability exploits. Following recent research papers, business case studies, and analysis of reported breaches, the study identifies recurring patterns of technical misuse and systemic weaknesses. It also assesses the efficacy of present countermeasures such as smart contract audits, formal verification methods, and community-based security bounties. The paper argues for a hybrid security model combining cryptographic resilience with regulatory coordination and user education to protect trust in decentralized finance.
Keywords
Decentralized Finance (DeFi) Cybersecurity Blockchain Vulnerabilities Smart Contracts Risk Management Digital Trust Cryptographic Resilience Governance Models Financial Technology Cyber-Resilience
How to Cite This Article
APA Citation
Ricci, M. (2025). Cybersecurity Challenges in Decentralized Financial Platforms. International Journal of Economics and Management Intellectuals, 1(3), 1-13.
Conclusion
This study illustrates that DeFi cybersecurity is fundamentally socio-technical. Decentralization promotes transparency and innovation but also disperses responsibility, making coordinated responses to threats more difficult.
A hybrid security model that combines cryptographic resilience, regulatory coordination, community governance, and continuous user education is essential to safeguard trust in decentralized financial systems while preserving their open and incentive-driven spirit.
References
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