Parity Technologies, Ethereum Foundation, and a16z are among the list of 50+ prominent collaborators spearheading the launch of The Security Alliance (SEAL) to improve Web3 security.
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The Security Alliance (SEAL) made a significant announcement, marking its public launch with over 50 groups and individuals from the Web3 and cybersecurity communities joining forces to enhance security across the crypto ecosystem. Alongside this launch, SEAL introduced a Request for Comment (RFC) on its Whitehat Safe Harbor Agreement, aimed at providing protection to 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. In 2022, a staggering $3.7 billion was stolen, including a notable hack targeting the cryptocurrency bridge Nomad, resulting in a loss exceeding $186 million.
While the total stolen funds reduced to $1.7 billion in 2023, the number of hacking incidents actually rose from 219 to 231. Fortunately, the intervention of experienced security researchers and whitehat hackers preemptively saved Nomad from further losses, enabling the recovery of $38.8 million.
Whitehat hackers and security researchers often find themselves in a conundrum when identifying exploits, uncertain about the legal implications of intervening. The Whitehat Safe Harbor Agreement seeks to address this by offering a legal and technical framework. It allows whitehats and MEV bots to intervene in exploits, provided they adhere to specified conditions, such as returning funds to a designated location and acting when an attack is imminent or underway.
Rewards for such interventions are outlined within the agreement, with bounties determined by the protocol, typically set at 10% or a maximum of $10 million. Importantly, participants are shielded from legal action if they comply with the agreement’s terms. The proposal, authored by legal experts from Piper Alderman, Debevoise & Plimpton, LexPunk Community Legal, and Delphi Lab’s Gabe Shapiro, has garnered support from leading crypto funds and projects worldwide.
Vincent Di Giambattista, Chief Information Security Officer (CISO) at Parity Technologies and Ecosystem Collaborator to SEAL, emphasized the paramount importance of security in the Web3 experience.
“Security is the foundation of a successful Web3 experience and is essential to mainstream adoption.”
Vincent Di Giambattista, Chief Information Security Officer at Parity Technologies
Di Giambattista highlighted that SEAL not only empowers Web3 projects to mitigate security incidents but also provides a platform for security researchers and whitehat hackers to utilize their expertise in countering exploits. The objective, he noted, is to foster collaboration between ecosystems, adapt to evolving threats, and continuously enhance 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 will enable people to create better institutions through technology.
