# Smart Contract Reentrancy ⎊ Area ⎊ Resource 2

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## What is the Vulnerability of Smart Contract Reentrancy?

Smart contract reentrancy is a critical vulnerability where a function call to an external contract allows the external contract to call back into the original contract before the initial execution completes. This recursive call structure enables an attacker to repeatedly execute code and drain funds from the vulnerable contract. The flaw arises from a failure to update the contract's state before interacting with external entities.

## What is the Exploit of Smart Contract Reentrancy?

The exploit typically involves a malicious contract that receives funds from the vulnerable contract and immediately calls the withdrawal function again. Because the vulnerable contract's balance has not yet been updated to reflect the initial withdrawal, the attacker can repeatedly extract funds until the contract is empty. This attack vector highlights the importance of secure coding practices in decentralized finance.

## What is the Protection of Smart Contract Reentrancy?

To protect against reentrancy, developers implement the checks-effects-interactions pattern, ensuring that state changes are finalized before external calls are made. Reentrancy guards, which lock a function during execution, are also used to prevent recursive calls. These measures are essential for maintaining the integrity and security of smart contracts in derivatives protocols.


---

## [Blockchain Network Security Vulnerabilities and Mitigation](https://term.greeks.live/term/blockchain-network-security-vulnerabilities-and-mitigation/)

## [Smart Contract Security Risks](https://term.greeks.live/term/smart-contract-security-risks/)

## [Smart Contract Security Overhead](https://term.greeks.live/term/smart-contract-security-overhead/)

## [Smart Contract Verification](https://term.greeks.live/term/smart-contract-verification/)

## [Smart Contract Security Cost](https://term.greeks.live/term/smart-contract-security-cost/)

## [Smart Contract Liquidation Engine](https://term.greeks.live/term/smart-contract-liquidation-engine/)

## [Smart Contract Gas Optimization](https://term.greeks.live/term/smart-contract-gas-optimization/)

## [Smart Contract Security Testing](https://term.greeks.live/term/smart-contract-security-testing/)

## [Smart Contract Margin Engine](https://term.greeks.live/term/smart-contract-margin-engine/)

## [Smart Contract Security Vulnerabilities](https://term.greeks.live/term/smart-contract-security-vulnerabilities/)

## [Smart Contract Gas Costs](https://term.greeks.live/term/smart-contract-gas-costs/)

## [Smart Contract Exploit](https://term.greeks.live/term/smart-contract-exploit/)

## [Smart Contract Insurance](https://term.greeks.live/term/smart-contract-insurance/)

## [Smart Contract Fees](https://term.greeks.live/term/smart-contract-fees/)

---

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