Decentralized Auditing
Additionally, Web3 Bug Bounty systems like Immunefi and Gitcoin further extend this concept by offering bounties for identifying security issues, leveraging the broader community’s expertise to enhance project security. These platforms represent a dynamic shift towards engaging a global pool of talent in the ongoing battle against security threats in the blockchain space.
Decentralized Auditing
Decentralized auditing introduces a gamified, community-driven approach to smart contract security. Platforms like Code4rena, Sherlock, and Codehawks, Hat.finance and Cantina create competitive environments where auditors, often referred to as “white-hat hackers,” compete to find vulnerabilities for rewards. This model incentivizes thorough and rapid vulnerability discovery.
Most of these systems function in similar ways but there are some important differences. The tend to be decentralized auditing platform that leverages a competitive environment to identify vulnerabilities in smart contracts. This offers a gamified approach to security auditing, where auditors compete to find and report vulnerabilities for rewards. This model incentivizes thorough and rapid vulnerability discovery, enhancing the overall security posture of smart contracts. Code4rena’s decentralized approach enables a global pool of talent to participate in the ongoing battle against security threats in the blockchain space.
Some platforms also provides “Bot Races” in which different security bots competitively hunt down vulnerabilities in smart contracts. This approach leverages automated tools to complement human expertise, enhancing the efficiency and effectiveness of security audits.
The project being audited typically sets a reward pool, and auditors compete to find vulnerabilities. Once a vulnerability is found, it is reported to the project, and the reward is distributed to the auditor. This model leverages the broader community’s expertise to enhance project security, providing a dynamic and effective approach to identifying and addressing security vulnerabilities.
The project may choose to work with a more select group of auditors in a “by invitation” audit competition or they may require that KYC is performed to ensure the auditor is a citizen of particular country. This done independently of the audit platform by a third party so that the auditor’s identity is protected but regulatory requirements are met. This decision depends on the project’s specific needs and the level of expertise required for the audit.
Additionally, some platforms have a far more finite number of auditors that they allow in based on their expertise and experience. This is to ensure that the quality of the audits is high and that the auditors are able to handle the complexity of the contracts being audited. However, this can also lead to a bottleneck in the number of audits that can be performed at any given time.
Bug Bounty Systems
Web3 Bug Bounty systems like Immunefi and Gitcoin offer bounties for identifying security issues in smart contracts and blockchain projects. These platforms leverage the broader community’s expertise to enhance project security. By engaging a global pool of talent, they provide a dynamic and effective approach to identifying and addressing security vulnerabilities.