Parity Technologies, Ethereum Foundation and a16z are among the list of more than 50 prominent contributors leading the launch of The Security Alliance (SEAL) to improve Web3 security.
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The Security Alliance (SEAL) made a major announcement, marking its public launch with more than 50 groups and individuals from the Web3 and cybersecurity communities joining forces to improve security across the crypto ecosystem. In addition to this launch, SEAL introduced a Request for Comment (RFC) on its Whitehat Safe Harbor Agreement, aimed at providing protection for whitehat hackers capable of defending protocols and user funds during active exploits.
The backdrop to this initiative is the alarming increase in crypto thefts, as highlighted in last year’s Crypto Crime Report. A whopping $3.7 billion was stolen in 2022, including a notable hack targeting the cryptocurrency bridge Nomad, resulting in a loss of more than $186 million.
While the total stolen money fell to $1.7 billion by 2023, the number of hacking incidents actually increased from 219 to 231. Fortunately, the intervention of experienced security researchers and whitehat hackers preemptively saved Nomad from further losses, allowing the recovery of 38.8 million dollars became possible.
Whitehat hackers and security researchers often find themselves in a conundrum when trying to identify exploits, and unsure of the legal implications of intervening. The White Hat Safe Harbor Agreement attempts to address this by providing a legal and technical framework. It allows whitehats and MEV bots to intervene in exploits, provided they adhere to specific conditions, such as returning funds to a designated location and acting when an attack is threatened or in progress.
Rewards for such interventions are set out in the agreement, with incentives determined by the protocol, typically set at 10% or up to $10 million. Importantly, participants are protected from legal action if they adhere to the terms of the agreement. The proposal, written by legal experts from Piper Alderman, Debevoise & Plimpton, LexPunk Community Legal and Gabe Shapiro of Delphi Lab, has received support from leading crypto funds and projects around the world.
Vincent Di Giambattista, Chief Information Security Officer (CISO) at Parity Technologies and Ecosystem Collaborator at SEAL, emphasized the paramount importance of security in the Web3 experience.
“Security is the foundation of a successful Web3 experience and is essential for mainstream adoption.”
Vincent Di Giambattista, Chief Information Security Officer at Parity Technologies
Di Giambattista emphasized that SEAL not only enables Web3 projects to mitigate security incidents, but also provides a platform for security researchers and white hat hackers to use their expertise in countering exploits. The goal, he noted, is to promote collaboration across ecosystems, adapt to evolving threats and continually improve security for all users.
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About parity
Founded by blockchain pioneers, Parity is a core blockchain infrastructure company, creating an open-source creative commons that allows people to create better institutions through technology.