Over the weekend there were extreme headlines in the Cryptoworld. As always, they are either not displayed correctly by the news or the community doesn’t understand exactly what’s going on now.
What exactly happened?
A (clever?) person made a total of 360’000$ out of about 7.81$!
A person has recorded a so-called Flashloan. A flashloan is basically a loan, which is taken up within a block and returned within the same block. In the case of Ethereum, the whole thing happens within about 15 seconds. You don’t have to put anything down either, because if you don’t return the ETH at the end of the block, it never happened in the block chain world. Since everything happens very fast, you usually don’t do it manually but with a script.
It all sounds more complicated than it really is. So that you can understand everything, I made a video about it and explained it step by step in a simple way with a screenshare!
How do you see the whole thing?
In the end it needs mistakes, because that’s the only way we can develop further and other projects can learn from a mistake in another project.
I am very curious about your opinion – let me know in the comments!