- DeFi cybersecurity is crucial for protecting the Web3 community, which lost $4 billion to scams in 2022.
- Immunefi pays security engineers for detecting exploitable errors in code before they become hacks.
- An always-on security desk can be expensive, which is why companies like Immunefi are contracted for close to 24/7 coverage.
- AI has the potential to replace overburdened workers and make workflows more efficient and accurate but is not yet suitable for practical security concerns.
Why DeFi Cybersecurity Can Never Sleep
Decentralized finance (DeFi) has been making headlines in recent years due to its promise of democratizing access to financial services. However, with the growth of the DeFi space comes a significant risk: cybersecurity threats. As more and more money pours into DeFi, bad actors are constantly on the lookout for vulnerabilities to exploit. That’s why keeping DeFi safe is a never-ending battle.
Bug bounty programs have become a popular way to incentivize security researchers to find and report vulnerabilities before they are exploited by malicious actors. However, these programs have their limitations. While they can help identify security issues, they don’t provide a complete solution for keeping DeFi safe. That’s where companies like Immunefi come in.
According to Mitchell Amador, the founder and CEO of Immunefi, staffing an always-on security desk to respond to reports from bug bounty programs can be really expensive. That’s why companies turn to Immunefi to provide 24/7 coverage. Immunefi aggregates thousands of bug bounties for Web3 clients on its platform, making the DeFi space safer.
In 2022 alone, Immunefi estimates that security scams cost the Web3 community around $4 billion. That’s a significant amount of money and highlights the importance of keeping DeFi safe from cyber attacks. Immunefi has a global network of employees that maintain around-the-clock coverage for their subscription clients, reaching across multiple time zones around the globe.
Amador was inspired to secure blockchain projects after a tumultuous history with unvetted projects, some that resulted in him personally getting hacked. His experience is a reminder that even those with experience in the space can fall victim to cyber attacks.
While bug bounty programs and companies like Immunefi can help identify and respond to security threats, they aren’t the only solution. It’s also important for companies to take a proactive approach to security by implementing best practices like code reviews, penetration testing, and incident response plans.
Artificial intelligence (AI) has the potential to improve security by replacing overburdened workers or making workflows more efficient and accurate. However, as Amador notes, AI is not yet a suitable stand-in for security engineers. The technology is still a long way from being able to handle practical security concerns.
Keeping DeFi safe requires a multi-pronged approach that involves bug bounty programs, 24/7 security coverage, proactive security measures, and a recognition that cybersecurity is an ever-evolving threat. Companies that take security seriously will be better positioned to protect their users and their assets. As the DeFi space continues to grow, it’s crucial that the industry remains vigilant in its efforts to stay ahead of cyber threats.