Precision loss describes the reduction in accuracy of numerical values, often occurring during data processing or storage. This can happen when a system converts numbers between different data types or when computations exceed the system’s capacity for exact representation. In digital asset systems, it might affect calculations involving fractional token amounts or complex financial operations. It can lead to minor discrepancies in balances or computations.
Context
While seemingly minor, precision loss can have significant implications in financial applications, including those within cryptocurrency and blockchain. News related to precision loss might surface in discussions about smart contract vulnerabilities or auditing discrepancies where minute rounding errors accumulate. Developers prioritize robust numerical handling to prevent unintended financial consequences or protocol malfunctions.
A rounding error in an hToken contract, combined with low liquidity, enabled an attacker to manipulate exchange rates and drain millions via flash loans.
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