Reentrancy Attacks in Smart Contracts: A Deep Dive into Vulnerabilities and Prevention
Smart contracts are self-executing agreements with the terms written in code. While they bring transparency and automation, they are also prone to exploits if not properly secured. One of the most infamous vulnerabilities is the reentrancy attack , which led to the DAO Hack in 2016 , resulting in a loss of $60 million worth of ETH . This blog will cover: What is a Reentrancy Attack? How Does It Work? (With Code Examples) Types of Reentrancy Attacks Real-World Exploits How to Prevent Reentrancy Best Practices for Secure Smart Contracts 1. What is a Reentrancy Attack? A reentrancy attack occurs when a malicious contract repeatedly calls back into a vulnerable function before the initial execution completes, allowing the attacker to drain funds or manipulate state variables. Key Conditions for Reentrancy: ✅ External Calls – The contract interacts with an untrusted contract (e.g., sending ETH). ✅ State Changes After External Call – The contrac...