Incentivizing White Hackers for a Superior Crypto sphere
The growth of cyber attacks in the past year has brought the crypto community closer to discuss risks and possible solutions.
We all have heard the promise of decentralization; power to the people, groundbreaking technologies, biggest transfer of wealth and more. The beautiful thing about decentralized technologies is that we are no longer compressed into a box, where few individuals make decisions for the rest of the world. Instead, we have the power in our hands to create our own destiny, revolutionize financial systems, and challenge existing paradigms.
As this promise becomes a reality, there will be many challenges, especially in the crypto security sector due to its early stage. This year has been challenging for many DeFi protocols that lost millions of dollars due to black hat hacking. The attacks have created a cultural shift to welcome ethical hackers that can discover vulnerabilities and improve crypto security. The crypto sphere understands that the future of decentralized technologies lays in the hands of auditors and hackers that understand the ins and outs of blockchain security, however, it is imperative that white hackers are well incentivized to protect the future of digital financial systems.
At the end of the day, crypto users hold the ultimate choice when it comes to crypto projects they invest in. They have the power to voice their beliefs on security concerns and advocate for safe, equitable, and fair incentives for ethical hackers building the future of security. At Hats, we allow every member of our community to participate in the decision-making of the Hats protocol including utilization of funds, improvements, and executions within the protocol. We believe that every member of the Hats community has underutilized wisdom within them, and community involvement will make Hats Protocol the best cyber security marketplace.
Users incentivizing white hackers
We all have heard the saying: with big power comes great responsibility. Part of becoming your own bank in crypto is assuming responsibility for the dangers of early technologies, including the security flaws in the crypto world.
Today, if a crypto project wants to get an audit for their protocol, they often hire an agency or security research company. Since the audit is a one-time test, it can miss blind spots and become counterproductive after forks and protocol upgrades.
In addition to the audit, we believe that the best white hackers are crypto natives. They understand the many technicalities within Blockchain and are familiar with crypto use cases and vulnerabilities.
From a financial standpoint, it is cheaper and more productive to run 24/7 incentivize security, than pay hundreds of thousands for security researchers every time the project changes its contracts.
Incentivized security can also be great for smaller projects that do not have the funds for audits but want to create a vault that will increase in value as the project grows. Vaults have many advantages, assuming that exploits cost the community more in regards of credibility and reputation than the price of the vault itself.
As crypto security becomes the norm, we believe that the future of security will be decentralized, by allowing hackers to become independent contractors without depending on large middleman agencies taking from their efforts. By hiring independent talent, you get competitive experience from hackers around the world searching for big incentives, social recognition, and reputation from the community.
Crypto users must recognize and support the entrepreneurial and witty spirit of independent hackers, and that means voting and allocating funds for proposals that will increase security and create bug bounty programs.
The Power behind Bug Bounty rewards
The growth of cyber attacks in the past year has brought the crypto community closer to discuss risks and possible solutions.
Earlier this year, we discussed the possibilities of partnering with B.Protocol and creating a dedicated vault with them. When we talked with their DAO, we realized that the community was heavily invested in the security of the protocol, and everyone had a sense of collaboration to decrease risks. During the proposal, the Hats team engaged in proactive conversations with the B.protocol community, answering questions and concerns. Once the vote was made and B.Protocol approved funds to be deposited in the vault, members of the community were convinced that making security a priority made them more confident in the holding of their tokens. After a week of $100K deposited in the Vault, the value of the vault increased 3 times! Not including liquidity rewards.
Hats Finance’s mission is to make bug bounties the de-facto security method in crypto, helping projects save money and increase security while helping hackers monetize their skills. Join us in our mission to democratize crypto security!
If you are a member of a DAO, and you would like to introduce Hats in your community — Fill this form and join our Dao2Dao Hatters team.
Interested in joining Hats?
Hats will succeed in achieving its goals with the help of the community that will be built around it. We are always looking for devs and security experts that are interested in joining us. If you know Solidity or React, enthusiastic about Web3, and want to contribute to the security of the Ethereum ecosystem, please drop us a line and we’d be more than happy to help onboard you.
As always, follow us on Twitter or join our Discord server and let us know what you want to help with.
