As cryptocurrencies are gaining traction and popularity, slowly becoming more and more mainstream, the number of potential exploits and hacks also grows in numbers.
Hackers are constantly evolving their strategies to be able to take advantage of inexperienced users or unsuspecting exchanges. While many projects focus on prevention which has proven to be unsuccessful in the long run, we’ve decided to partner up with Lossless, a project that has taken a different approach to crypto security.
Lossless focuses on exploit mitigation by adding a piece of code to any token that wishes to benefit from their protocol. When suspicious crypto transactions occur, the Lossless protocol can freeze them (either automatically or with help from the community members or finders that discover malicious activities). They also encourage high levels of community participation as users will soon be able to review the transactions through a dashboard and flag suspicious transactions, freezing them for up to 48 hours and staking LSS coins in the process. After a transaction is frozen, the Lossless Decision Making Body inspects and evaluates the situation. If the flagger has correctly stopped an exploit, they get rewarded with a part of the coins they helped save. After the hack has been deemed valid, the transaction is frozen for further 14 days and a Lossless Decision Making Body is enacted for transaction reversal.
To further empower the crypto community and enable everyone to benefit from exploit mitigation systems, the Lossless mechanisms are fully open source for everyone to contribute, as any decentralized blockchain project should be. Token creators are also incentivized with no upfront cost of implementation, making it a win-win solution that only charges a fee in case a hack is successfully frozen and reversed.
With the help of this partnership, we’ll be able to educate our community and users about the new concept of exploit mitigation and transaction freezing while also introducing Lossless as a working solution and protection provider. In the future, we’ll likely also implement their solutions as part of the NewsCrypto blockchain incubator for new projects, helping them take their security to the next level.
While there’s been billions of dollars stolen with the help of DeFi exploits in 2020 alone, such security projects and development are of utmost importance and we’re looking forward to our collaboration with Lossless, creating a safer place for everyone in crypto.