Exploit

Definition ∞ An exploit refers to the malicious utilization of a security flaw or vulnerability within a protocol, smart contract, or application to gain unauthorized access, steal assets, or disrupt operations. These events often result in significant financial losses and underscore the critical importance of rigorous security auditing and robust development practices. Identifying and mitigating such vulnerabilities is a constant challenge.
Context ∞ Reports of exploits are recurrent in crypto news, frequently detailing instances where decentralized finance protocols or individual wallets are compromised, leading to the misappropriation of substantial digital asset holdings. The ongoing cat-and-mouse game between malicious actors seeking vulnerabilities and security researchers striving to patch them defines a significant aspect of the ecosystem’s risk profile.