Hacking has become commonplace in the crypto industry. Cybercriminals resort to any means possible to get hold of users’ cryptocurrencies. But that could change! That’s because startup ChaosLabs claims to have developed a tool that allows DeFi protocols to protect themselves from cyberattacks. The companies Paypal and Galaxy have raised a considerable amount of money to support this project.
PayPal and Galaxy back ChaosLab’s security project
As cryptocurrency adoption accelerates at a breakneck pace, it seems to be attracting more and more scammers who hack into users’ accounts at every opportunity. However, startup ChaosLabs is championing a good cause by implementing an automated tool that allows cryptocurrency protocols to protect themselves from hacks.
The company announced on Tuesday that it has secured a crucial amount of money from various partner companies. Payments giant PayPal and investment management firm Galaxy Digital raised $20 million in support of the initiative from Chaos Labs, a New York-based cloud platform, with 23 organizations and six angel investors participating in the fundraising, including Coinbase Ventures, Polygon, Avalanche, OpenSea, UniSwap and Balaji Srinivasan.
Indeed, the year 2022 has not been kind to cryptocurrency protocols. The number of hacks has grown on a large scale. Hacks in DeFi protocols account for more than 60% of the attacks that took place last year.
ChaosLabs can therefore be seen as a savior, with the hope that its platform presented as a cost-effective security and risk management solution will not be foiled by hackers.
Omer Goldberg, CEO and founder of Chaos Labs, said improving financial risk management is crucial to meeting the needs of Decentralized Finance (DeFi) ecosystems.
We believe that every DeFi protocol needs to perform regular testing to verify and validate that their economic system is secure against hackers and volatility.Statement by Omer Goldberg
Chaos Labs savior of the chaotic crypto world?
Although cryptocurrencies are booming, it seems that hackers are always on the prowl, looking to take over users’ accounts at every opportunity. This is particularly concerning, as in a bull market, hackers are likely to flock to try their luck.
However, there are initiatives in place to prevent an impending disaster in the industry. According to Beosin’s annual report, there are three initiatives that could be put in place, including:
- Regulation of cryptocurrencies to protect users,
- The development of attack prevention and audits, and
- The strengthening of blockchains.
This strengthening is exactly where Chaos Labs comes in, and many large DeFi protocols, such as Aave, have already adopted the tool proposed by ChaosLabs to protect themselves from cyberattacks and maximize the efficiency of their capital. Let’s hope this tool is strong enough to counter hacker attacks.
Coming from a journalism university background, I came across Bitcoin and cryptocurrencies not long ago.
The potential of the Blockchain seduced me and I made it my research topic.