SBF New Approach to Prevent Hacks

Finance

By Aahil

October 27, 2022

Sam Babkman- Fried has developed a framework that caps the rewards for attackers at $5 million in order to reduce the impact of the hacks and Exploits plaguing the industry.

This follows the post-helst transaction in which the hacker kept $50 million of the approximately $100 million that was taken out of the Mango decentralized banking platform.

The crypto industry was robbed of more than $3 billion this year

He proposed a 5.5 standard, under which hackers would only be allowed to keep $5 million or 5% of the money they had stolen from a protocol.

Other important requirements include recovering the customer and the hackers acting in good faith and with the full purpose of cooperating to return the majority of the assets.

He claimed that hacks severely harm the ecosystem of digital assets. His 5-5 strategy can reduce the impact of a hack by more than 98%, but he is dubious about the appropriate criteria.

DeFi Data from blockchain expert chainalysis Inc. shows that Defi was the subject of the majority of attacks and hacks this year.

David Gottesman, 96, Wall St. Power and Warren Buffett Partner