Let me answer you more in details ....
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can you cheat in Silkroad like increase your damage? or increase defense?
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No , You can't do that because there is basically not any direct way of cheating or increasing this unless you got access to the server's database .
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or maybe only GM can cheat?
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Why would a GM need to cheat ? He can for sure give himself some items , increase his stats or so .
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is there any command that can give other players an increased damage or str or defense...etc?
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No, There is totally nothing like that in silkroad , any command you will write will be just a visual edit.
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Talking about players who have the same gears as you but having more damage/defense could have couple of scenarios.
1- Are you playing against the same build ? because if you are maybe a warrior and playing against a wizard then yeah you don't need to complain about him killing you with one or two hits .
2- You've got the same items + values yes , but do you have the same white stats values ? this could play a big role too.
3- If the GM is corrupt , then yes it could be a possibility that he changed some of the STR and INT values of some players which will for sure give them more damage/defense.
But just to sum it all up , there is nothing called using cheat codes to gain more damage/defense ..
Have a Good Day,