DeFi

Developers don’t know enough about zero-knowledge security – and it’s a ticking time bomb – DL News

Published

8 months ago

31 May, 2024

Developers don't know enough about zero-knowledge security – and it's a ticking time bomb – DL News

Brian Pak is CEO and co-founder of ChainLight, a blockchain security company specializing in smart contract audits and on-chain monitoring.

Zero-knowledge words, once relegated to academic articles and crypto forums, have become commonplace.

ZK technology allows one party, like a blockchain protocol, to prove to another party that something is true, such as a person’s age, while keeping that information completely confidential.

ZK crypto succeeds in scaling the Ethereum smart contract network. More than a dozen ZK-based networks, commonly known as ZK rollups, run on Ethereum, with a 4 billion dollars value of deposits.

But despite all the hype, there’s one big problem. Lack of knowledge about ZK is a ticking time bomb.

Most crypto developers still know very little about this complex topic.

And as more developers begin experimenting with ZK technology, it creates major security risks, and even prevents the technology from reaching its true potential.

At the same time, ZK technology promises to revolutionize the crypto industry, so getting developers and the broader user community up to speed is imperative.

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ZK developers are “out of date”

In 2022, co-founder of Ethereum Vitalik Buterin pointed out security risks of ZK stacks, such as bugs in the circuit’s constraint code.

These codes are essential in ZK rollups because they define and enforce rules for cryptographic proofs ensuring the validity of transactions.

Bugs in these codes can lead to serious security vulnerabilities, such as incorrect proofs or unauthorized access to funds.

Since Buterin’s warning, developers have identified several other vulnerabilities in projects using ZK technology.

In November, ChainLight discovered a bug in ZK Sync Era’s ZK circuits, which could have allowed a hacker to steal $1.9 billion.

Also in 2018, a Zcash cryptographer discovered a vulnerability in zero-knowledge proofs underlying the protocol. If not fixed, the bug could have allowed an attacker to create fake Zcash tokens without being detected.

Such vulnerabilities are a sad indictment of a new form of technology that is clearly not understood by enough people.

Many developers who write the code and the security professionals who must sign off on its security are simply overwhelmed.

And it’s no surprise: everyone will tell you that a PhD level in mathematics is necessary to understand the security aspects of ZK technology.

This means that the number of people qualified to audit ZK code is limited, as are the resources needed to train them.

And the lack of experts to properly audit ZK code is not the only problem.

ZK rollups, such as zkSync Era and StarkNet, are developed in-house and therefore peer review processes are not as thorough as the standards seen in academia.

I will remain skeptical of the security of ZK technology until the peer review process is more standardized.

ZK not reaching his potential

Lack of understanding of ZK technology also prevents it from realizing its full potential.

This is due to a lack of trust in the technology which leads manufacturers to choose more familiar frameworks.

For example, one of the main touted benefits of ZK stacks is instant finality.

This means that as soon as proof of a block is verified on the Ethereum mainnet, the results are final. This notably allows for instant asset withdrawals and also improves security.

Optimistic rollups, the main rival to ZK rollups, require a seven-day waiting period to withdraw assets.

There is a growing consensus that ZK rollups are the best solution for scaling Ethereum beyond optimistic rollups.

Some go so far as to describe them as “Holy Grail» of scaling solutions.

Co-founder of Immutable Robbie Ferguson described ZK rollups as “by far the easiest way to scale high-throughput transactions.”

But, in reality, most developers are still not using the technology to its true potential because they are simply not comfortable with using some of its unique features due to its complexity.

For example, none of the existing ZK accumulations really have the instantaneous purpose announced.

The coding is so technical that developers might be afraid of making a mistake, leading them to choose not to implement the instant finality.

Instead, protocols have what’s called a lead time, in which there is a window of about a day to detect an exploit and roll back changes before they are finalized.

With this, the security of ZK rollups comes with a major compromise and giving up one of its most important advantages.

Only a better understanding of ZK technology will allow manufacturers to maximize its potential without compromising safety.

Security by design

Across Web3 – not just the ZK sphere – projects aren’t taking audits seriously enough.

Many projects view audits simply as stamps of approval to give themselves a reputable appearance, rather than the rigorous security exercises they should be.

There are several cases where known bugs have crept into new DeFi protocols, costing investors millions.

For example, several protocols that derived code from the Compound v2 lending protocol, such as Hundred Finance and Onyx Protocol, did so blindly and did not consider known attack vectors in the code.

Instead, developers should strive to create protocols that are secure by design, meaning they are built in a way that protects against attacks first and foremost.

Building by design starts with staying abreast of threats to the ecosystem.

If a project does not have the resources to perform a thorough audit, it should still track hacks that occur on other projects so that they are not victims themselves.

While failing to create secure protocols by design would be a problem for any project, it is particularly detrimental in the case of ZK technology.

For example, let’s take a look at existing ZKEVMs – ZK rollups that perfectly replicate Ethereum’s operating system.

Many ZKEVMs rely on manually defined circuits, which require human involvement and use young and untested libraries.

The likelihood of developers making errors in this environment is high, making ZK rollups more vulnerable to the risk of attacks.

As investors pile into ZK rollups, incentivized by possible token airdrops, they become lucrative targets for the next major crypto heist.

Solutions

Implementing security early in the development cycle and on an ongoing basis, for example through bug bounties, can help solve this problem.

There is no doubt that ZK technology is a game changer for Ethereum, and constant development is fundamental to scaling the blockchain.

However, the solutions offered by ZK rollups live up to their potential to cause security issues.

Startups must first be honest about whether they are using ZK technology because it is necessary or because they are jumping on the bandwagon.

If they are certain to be first, then they need to be aware of the risks and building with security by design is absolutely fundamental.

Fuente

DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

6 months ago

29 July, 2024

CoinFlix Staff

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.

The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.

Bonk remains strong despite market fluctuations

While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.

Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.

Pepe should see a big rise in the next bull run

Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.

Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.

In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.

Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4

Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.

With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.

Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.

The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.

RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.

Discover the exciting opportunities of the Rollblock (RBLK) presale today!

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Fuente

DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

6 months ago

29 July, 2024

CoinFlix Staff

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.

Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.

According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.

“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.

I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.

The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.

“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”

I expect them to launch actively managed crypto ETFs [in the] coming years. ”

Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.

“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.

Chasing mass adoption of normies may be chasing the wrong Grail from the start.

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