Although the ongoing Binance FTX saga continues to dominate the crypto waves, there has been a growing trend, a nasty one indeed, that has caught the attention of many digital currency enthusiasts and hackers. Return partial funds for detecting exploits within a log. In this regard, the bad actors behind the $14.5 million attack on Team Finance recently announced that they would be allowed to retain ownership of 10% of the stolen funds as a reward. Similarly, Mango Markets, a decentralized finance network based in Solana (DeFi), which was recently hacked with over $110 million, revealed that its supporter community was working toward a consensus to see the hacker receive $47 million as a reward for uncovering the exploit.
It is a good practice for now
On the one hand, a decentralized cryptocurrency derivatives exchange’s co-founder and CEO, Rachel Lin, the concept of allowing “black hats” to turn into “white hats” encourages the sector to expand its Best practice to raise standards. But it’s still not uncommon for popular protocols to be forked or copied and pasted, leaving them riddled with hidden bugs—similarly, Brian Pasfield, CTO of the decentralized money market.
Fringe Finance told Cointelegraph that the idea of giving hackers a fraction of the money they make to discover loopholes can be viewed as unhealthy and almost unsustainable is the Alternative to resorting to law enforcement to catch the perpetrators and recover the funds, which is time-consuming if at all successful,” he added.
Finally, Jasper Lee, Audit Technology Lead at SOOHO.IO, a crypto audit firm for several Fortune 500 companies, said that this type of white-hat behavior could be healthy for the supply chain industry and offers the opportunity to identify vulnerabilities in DeFi protocols before they become too big. Additionally, he told Cointelegraph that in non-blockchain sectors, even if a hacker finds a vulnerability in a code, it is difficult for them to make that information public.
As it could lead to serious legal problems. “Traditional hackers rarely give back the money they have stolen because doing so would probably identify who they are, according to Lee.
Not everyone agrees
David Carvalho, CEO of Naoris Protocol, a distributed cybersecurity ecosystem, made it clear that allowing hackers to hold funds in this way not only undermines the entire spirit of a decentralized financial system but encourages behavior that fosters distrust.” It can no longer be something to be tolerated at any level. The fundamentals of a safe and fair financial system don’t change,” he told “The premise that the only way for to solve the hacking problem is to make the problem part of the solution.” is fatally flawed. It might fill a minor gap for a brief time, but over time, the crack will widen due to the weak remedies, destabilizing the market.
Tim Bos, co-founder and president of ShareRing, a blockchain-based ecosystem that offers digital identity solutions, shares a similar opinion and thinks it’s a terrible practice. All of this makes hackers realize that they can commit a great crime, be rewarded for it, and then face no consequences,” he told Carvalho noted that just because a hacker is kind enough to return some of the funds doesn’t make it a good practice as these episodes still cause people and DeFi platforms to lose much money. “
For mass adoption by businesses and individuals, we need reliable and hack-proof security systems in the web2 and web3 ecosystems. Having a cohort of hackers seemingly in charge of cybersecurity is insane, to say the least, and does nothing to move the industry forward,” he said.
What’s the solution?
It’s no secret that a large part of the Web3 ecosystem “and the associated cybersecurity solutions” They’re still running on yesterday’s Web2 architecture, making them highly centralized. Carvalho claims that this is the unspoken issue that most Web3 platforms are unwilling to address. He believes that the standards for executing and publishing intelligent contracts will only fundamentally change or improve if these pressing problems are solved using decentralized solutions, quality assurance processes and risk reviews, especially for projects with millions of dollars in crypto assets in their coffers.
“Established banks are virtually impossible to hack because they spend much money on security clearances, underwriting, etc. We need to see the same level of technical oversight in the crypto industry,” he concluded. So, as we head into a future increasingly powered by decentralized technologies, hackers show how much more work the crypto industry needs to put into their security practices.