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However, its continued growth heavily depends on how secure the technology is against attacks.

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Data processing with AI algorithms ✌️【Market Analysis】✌️Start investing with ₹500 and watch your wealth grow through blockchain-powered tools!To remedy this situation, the Ethereum community has come up with a new token standard called ERC-7265.In this guide, we will explain the ERC-7265 token standard and the role it plays in DeFi risk mitigation.The ERC-7265 proposes adding a “circuit breaker” mechanism to DeFi protocols to stop the transfer of tokens in the event of a hack.Re-entrancy attacks, logic errors, and manipulation of oracles can cause these hacks.

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For developers working on ERC-compliant protocols, the ERC-7265 offers the flexibility to customize the circuit-breaking mechanism to a protocol’s specific needs.The circuit breaker is customizable in one of two ways.

It can delay settlements and temporarily hold custody of assets during the post-protocol breach phase.Data processing with AI algorithms Data Entry Part-Time Jobs: No Experience Required