Finally, the Launch of a Fraud Prevention Blockchain: Sentinel Protocol for the Cryptocurrency Industry that is Plagued with Frauds and Hacks
The daylong initial coin offering (ICO) token sale on 27 May 2018 enabled Sentinel Protocol to achieve its sales target. In just 3 minutes 26 seconds they were able to raise US$8 million. The prominent interest in this platform could very much be due to the urgent need for increased security in the cryptocurrency industry. The platform aims to deliver intelligence on real-time frauds and hacks to cryptocurrency exchanges, payment services, and wallets for increased security. This is done as a free API through their decentralized Threat Reputation Database (TRDB).
Missing Ethers Triggers Awareness
With headquarters in Singapore, Uppsala Foundation is a startup founded by security specialist, Patrick Kim to develop Sentinel Protocol. In 2016, Patrick lost 7,218 ethers that he mined due to security weaknesses in the Ethereum Mist wallet. He investigated the matter and found the loopholes that made this possible. He shared his findings with online communities and on YouTube leading to increased awareness of vulnerabilities in the system.
Building an Ecosystem for Cryptocurrency Security
Ultimately, the aim for Uppsala Foundation is to establish an ecosystem that disincentives fraudulent activities with cryptocurrencies. This is done by rewarding the contributions of security professionals, allowing the reporting of fraud and hacking incidents by individuals and organizations, as well as by curbing the usage of cryptocurrencies that are stolen.
Notable Frauds and Hacks in 2018
It has not been an easy year in 2018 with a staggering more than US$670 million being stolen through cryptocurrencies frauds and hacks. Notably there is the US$530 million Coincheck hack that is a Japanese cryptocurrency exchange. It is due to flaws found in new regulations governing the way exchanges run in the country. There is also the US$170 million BitGrail hack that is an Italian cryptocurrrency exchange. It is a very contentious case as rumors have it that the founder, Francesco Firano alleged misappropriated the funds. And there was also a US$660 million exit scam in ICOs from Ho Chi Minh City, Vietnam. The company, Modern Tech went missing after convincing 32,000 individuals to invest in two bogus cryptocurrency projects that resulted in mass protests on streets.
Frauds and Hacks Prevention Absolutely Needed
Considering the numbers of frauds and hacks that have been taking place in 2018 itself and the many more that has happened in previous years, a platform to strengthened security definitely sounds like a necessity. The success of the Sentinel Protocol would be greatly dependent on whether or not they can garner the participation and collaboration of security professionals and other relevant stakeholders.
Pic – The functions of Sentinel Protocol (from icodrops.com)