# Reentrancy Attack ⎊ Area ⎊ Resource 2

---

## What is the Attack of Reentrancy Attack?

A reentrancy attack is a critical vulnerability in smart contracts where an external call to another contract allows the attacker to repeatedly execute code before the initial contract's state is updated. This exploit enables the attacker to drain funds from the vulnerable contract by recursively calling the withdrawal function. The most famous example of this attack was the DAO hack in 2016.

## What is the Vulnerability of Reentrancy Attack?

The vulnerability arises when a contract sends funds to an external address and then updates its internal state, such as the user's balance, in a subsequent step. If the external address belongs to a malicious contract, it can call back into the original contract's withdrawal function before the state update occurs. This allows the attacker to withdraw more funds than they are entitled to.

## What is the Consequence of Reentrancy Attack?

The consequence of a successful reentrancy attack is often the complete depletion of funds from the vulnerable smart contract. To mitigate this risk, developers implement checks-effects-interactions patterns, ensuring that all state changes are completed before making external calls. This prevents the recursive execution of functions and protects the protocol's assets.


---

## [Blockchain Network Security Audits and Vulnerability Assessments](https://term.greeks.live/term/blockchain-network-security-audits-and-vulnerability-assessments/)

## [Options Settlement Security](https://term.greeks.live/term/options-settlement-security/)

## [Behavioral Finance Proofs](https://term.greeks.live/term/behavioral-finance-proofs/)

## [Liquidation Efficiency](https://term.greeks.live/term/liquidation-efficiency/)

## [Blockchain Network Security Challenges](https://term.greeks.live/term/blockchain-network-security-challenges/)

## [Cost to Attack Calculation](https://term.greeks.live/term/cost-to-attack-calculation/)

## [Real Time Market State Synchronization](https://term.greeks.live/term/real-time-market-state-synchronization/)

## [Adversarial Game Theory Risk](https://term.greeks.live/term/adversarial-game-theory-risk/)

## [Attack Cost](https://term.greeks.live/term/attack-cost/)

## [Economic Cost of Attack](https://term.greeks.live/term/economic-cost-of-attack/)

---

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---

**Original URL:** https://term.greeks.live/area/reentrancy-attack/resource/2/