Originally published on: November 01, 2024
As the world delves deeper into the realm of decentralized ecosystems, the conventional security models inherited from Web2 are failing to meet the unique requirements of Web3. In a recent AMA hosted by Cointelegraph, Oliver Hörr, the brain behind Hats Finance, delved into the limitations of current security approaches and shed light on how their platform is paving the way for a more efficient and transparent means of safeguarding decentralized projects.
The landscape of Web3 security is evolving, and Hats Finance is at the forefront of this transformation. By connecting security experts directly with projects in need of auditing through a decentralized protocol, Hats Finance is eliminating the need for intermediaries. This peer-to-peer system leverages incentives and game theory to attract experts, making security more accessible and effective. With over 50 active programs, including collaborations with projects like Safe and Liquity, Hats Finance is on a mission to fortify the security of decentralized ecosystems.
Traditionally, bug bounty programs have been plagued by delayed or denied payments, leaving hackers in limbo, especially during challenging market conditions. Hats Finance, on the other hand, offers a more ethical approach by utilizing onchain escrow services. This transparent system ensures that hackers are fairly compensated for their findings, encouraging responsible disclosure and enhancing overall ecosystem security.
Furthermore, Hats Finance highlights the significance of community participation in bolstering project security. By involving the community in funding bug bounty programs, projects can scale up their security initiatives and foster a sense of collective responsibility towards protocol safety.
In addition to enhancing security, bug bounty programs present new projects with an opportunity to drive activity within their ecosystems. By incorporating liquidity mining with native tokens, projects can stimulate engagement and concurrently build up their security budget. This onchain approach advocated by Hats Finance streamlines security spending, allowing projects to allocate resources efficiently.
In a bid to deter low-quality submissions, Hats Finance has implemented submission fees, ensuring that only legitimate reports are submitted to the platform. This mechanism not only safeguards against spam but also contributes to the growth of the ecosystem by converting gas fees into HAT tokens for the platform’s treasury.
Operating on multiple EVM-compatible chains, Hats Finance offers researchers a unified interface to engage with bounties and submit reports anonymously. With optional profiles and leaderboards, participants can showcase their skills and achievements, fostering a competitive yet collaborative environment.
Looking forward, Hats Finance envisions a future where community-driven auditors take the lead. Top performers on the platform’s leaderboard could potentially offer pre-audit services for a fee, enabling projects to assess their audit readiness before proceeding with a full audit.
By embracing AI-powered audits and remaining open to new technologies, Hats Finance is pioneering cutting-edge security solutions. The platform’s commitment to innovation and community engagement sets a new standard for Web3 audits, ushering in a more secure and collaborative era for decentralized ecosystems wherever they may thrive.
Please note that Cointelegraph does not endorse any specific content or products mentioned in this article. Readers are encouraged to conduct their own research and exercise caution before making any investment-related decisions.
