SafeBlocks has developed the first decentralized application firewall (DAF) to protect blockchain smart contracts from value attacks and unauthorized transactions. This security solution comes as the blockchain industry grows beyond mere cryptocurrency speculation to embrace a wide range of potential uses, including supply chain management, accounting, and cross-border payment settlements. Analysts for top research firm Gartner estimate that the market value for blockchain transactions will reach $176 billion by 2025, up from $339 million in 2017. However, this level of growth has also turned this new technology into a prime target for hackers.
Blockchain is a global infrastructure that allows value to be stored, shared, and transferred. Smart contracts are decentralized applications that process value transactions and which are distributed across multiple nodes on specialized blockchain platforms. Traditional applications are set up using servers, and if a server goes down, the application cannot be accessed. Smart contracts are distributed using multiple nodes which each replicate all of the data required for the application to function. This removes the possibility of downtime, and makes the applications unstoppable.
In 2017, startups raised over $3.5 billion in capital through initial coin offerings (ICOs). According to Ernst & Young, in that same year, over $400 million of those funds were stolen due to security bugs and hackers. Smart contracts face constant threats from stolen private keys, code vulnerabilities, and other weaknesses, and in 2018, we have already seen a number of high profile attacks, including the breaches that affected Bancor and KickICO.
Until now, smart contract security solutions relied primarily on audits performed before the decentralized applications were deployed to the blockchain. While this is useful for finding coding errors and known vulnerabilities associated with the programming language used to write the program, it is not enough. The current situation is similar to the early days of web applications, where, at first, code reviews were the only method used to protect against intrusions. Eventually, it became clear that there needed to be an extra web application firewall (WAF) layer which could be used to control and monitor web traffic in real-time. SafeBlocks was the first to see the advantages of an equivalent DAF layer for decentralized apps, and we have just released a beta version of SafeBlocks Firewall.
DAF security policies are built by using rules and limits to control transactions. After integrating your smart contract with SafeBlocks Firewall, it will check each transaction request against the security policy you’ve created. If the request meets the specified parameters, the transaction will be approved. Otherwise, it will be denied. For example, you can limit transactions to a specific address destination, or set a maximum amount of tokens per transaction. You can also define a minimum interval between smart contract transactions. SafeBlocks Firewall offers a simple solution that goes beyond the basic protection provided by auditing, and keeps the funds stored in your smart contract safe. DAF technology represents a new and necessary advance in smart contract security that will help the industry manage its explosive growth. We are proud to be at the forefront of the revolution in the blockchain landscape.
SafeBlocks is based in Tel Aviv, Israel and was founded in 2018 by a team of entrepreneurs dedicated to promoting blockchain adoption and smart contract security. SafeBlocks Firewall was recently selected as one of the ‘6 Cybersecurity Tools You’ll Need to Know About in 2019’ .