On June 27, a Singapore-based company Sentinel Protocol is test launching a blockchain platform that will monitor cyber attacks on cryptocurrency exchanges and users wallets. The key aim of the technology would be to block the future usage of the stolen crypto.
Why it is important
- In 2018 hackers managed to earn around a billion U.S. dollars. The most common cases are when intruders forcefully use the computing power of users to mine crypto, or they take over a users computer and demand money for the return of control. 1. In some instances crypto exchanges do not provide the required level of security during the user identification process which may lead to theft. Recent hacks of Bithumb and Coincheck exchanges seemingly have inspired the regulators to step up their efforts to protect users.
The company is also planning to set up a decentralized Threat Reputation Database (TRDB) where all cyber attacks and fraud activity will be protocolled. The system would also track the sub-addresses tied to hackers which would allow exchanges and wallets to identify the stolen cryptocurrency and block it from being used.
The company adds that the more companies join the TRDB effort the harder it will be for intruders to use stolen crypto. Exchanges such as DDEX, Bibox, IDEX, and DEx.top have already partnered up with the security firm.
Sentinel Protocols founder Patrick Kim has stressed the need for a unified security principle:
“The ideology of decentralization is central to both cryptocurrency and the internet, but it is impossible to say that blockchain implements perfect autonomy. Decentralization is not a magical solution to all problems … the ideology of decentralization must develop a philosophy of security.”
Sentinel Protocol system is comprised of three aspects: The Sentinel Portal where the community can share information on cyber attacks and receive expert help. S-Wallet system that will predict future attacks and a Sandbox tool that identifies the threats in the first place.