As the blockchain ecosystem expands, so do the security threats that come with it. Traditional blockchain security measures, such as audits, bug bounties, monitoring, and alerting systems, are no longer enough: over $3.3 billion worth of assets was stolen in 2022.
HYDN Prevent is our answer, a real-time fraud prevention solution.
The limitations of traditional blockchain security
There are some incredible people working in blockchain security, but current security solutions are falling short. Smart contract audits and bug bounties are great, but they will never be enough on their own to prevent attacks. The number of blockchain hacks keeps increasing each year. In 2022 there was $3.3 billion stolen in blockchain hacks, with 82% of this stolen from DeFi platforms.
More recently Dapps have implemented monitoring and alerting systems such as Cyvers and Forta. These add an extra layer of potential security, but more often than not Dapps cannot react fast enough.
You often have only seconds to prevent an attack once it is in progress, and this is where monitoring and alerts fail. They can give you valuable information about potential threats, but they notify you after an attack has already occurred.
Another trend is wallet simulation extensions such as Blowfish and Fire. They are a nice feature, but they don’t do enough to stop hacks. They can tell you if a website is unsafe or what your transaction is going to do, but if you’ve staked your tokens somewhere or provided liquidity, there’s nothing they can do once the transaction has executed. If the Dapp is hacked, your money is gone.
Because monitoring and alerting only react, Dapps and their users are left exposed to significant financial and reputational risks. Protecting digital assets takes a more proactive approach.
HYDN Prevent: real-time fraud prevention
Here at HYDN, alongside our Smart Contract Auditing and Web3 Penetration Tests, we’ve been building HYDN Prevent, a real-time fraud prevention product that stops attacks before they happen.
HYDN Prevent is designed to address the limitations of traditional blockchain security measures by identifying and stopping potential attacks before they execute.
Here’s how it differs:
- Proactive defense: instead of waiting for an attack and then reacting, HYDN’s technology identifies and neutralizes threats as they emerge, stopping individual transactions before they execute.
- Advanced algorithms: HYDN’s algorithms analyze network activity and detect patterns that indicate malicious intent. They use artificial intelligence and machine learning, so the technology keeps adapting to identify and counteract new attack vectors.
- Easy integration: HYDN’s real-time fraud prevention solution is designed to be simple to add to your Ethereum and Polygon Dapps, so developers can protect their users’ assets with minimal effort.
- Broad protection: the technology protects your Dapps from a wide range of security threats, including phishing attacks, smart contract vulnerabilities, and more.
The future of blockchain security
As the blockchain industry grows, security measures have to keep pace. We believe real-time fraud prevention is where blockchain security is heading, because it stops attacks that traditional monitoring and alerting systems can only report.
