High Percentage of Unverified Smart Contracts on Base
Out of the top gas-consuming smart contracts on Base, a layer-2 platform for smart contracts, 66% of them are unverified. This information comes from Token Terminal data on October 24. Interestingly, these unverified contracts are also some of the most actively used, based on gas fee trends over the past month.
Friend.tech Dominates Gas Race on Base
Base is a layer-2 scaling solution that competes with OP Mainnet and Arbitrum. It utilizes the Optimistic Rollup technique, allowing off-chain transactions to be batched before being confirmed on the mainnet. Friend.tech users benefit from lower trading fees by deploying on Base instead of the mainnet. Additionally, the layer-2 solution enables higher throughput for scalability.
In the last month alone, Friend.tech has generated over $253,000 in gas fees. The execution fee, or layer-2 fee, on Base (using Optimism) is set by the network and remains constant. This fee prevents network spamming and rewards nodes verifying transactions. There is also an additional fee for confirming the same transaction batch on the mainnet, which is typically higher than the execution fee.
The Rise of Unverified Smart Contracts
Despite Friend.tech’s significant gas fees of over $253,000, there has been a 47% decrease in the past month. This suggests a decline in trading activity since gas fees are directly proportional to usage frequency. Surprisingly, unverified smart contracts have outperformed Friend.tech in terms of fees generated during this period.
One unverified contract experienced a 104% increase in trading fees, reaching $42,000 over the previous 30 days. Another contract saw a staggering 1,690% increase, surpassing $11,000 in the same timeframe.
Unverified smart contracts have not been confirmed by a third party and may pose risks. There is no guarantee that the same developer created and deployed the code on Base, and there is a possibility of malicious code that could potentially steal from interacting addresses.
Hot Take: Potential Risks of Unverified Smart Contracts
The prevalence of unverified smart contracts on Base raises concerns about security and trust. As a user, it is crucial to be cautious when interacting with these contracts. The lack of verification means there is no assurance of the code’s integrity or the developer’s identity. It is advisable to thoroughly research and assess any contract before engaging with it to mitigate potential risks. Additionally, platforms like Base should prioritize implementing measures to encourage more verified contracts for enhanced user safety.
Newt Bettec emerges as an intellectual voyager at the intersection of crypto analysis, meticulous research, and editorial mastery. Within the digital labyrinth of cryptocurrencies, Newt’s intellect traverses intricate corridors, resonating with seekers of diverse inclinations. His talent for unraveling complex threads of crypto intricacies seamlessly blends with his editorial finesse, transmuting intricacy into an engaging tapestry of understanding.