How do we build a trust model with blockchain? Lessons learnt from Nice Hash Hack…
December 08, 2017, one breaking news on major exchanges and TV channels was that NiceHash, a Slovenia-based mining exchange[i], was hacked and lost $80m worth bitcoins from its site. The founders had to apologize on Facebook and other social media outlets.
Our tech team at FarmaTrust believes that transactions should have been red-flagged as soon as the first 1000 coins being withdrawn from the wallet. Hence, the need for a high-alert system for transaction with large values. In our roadmap, we have added a component called Packet Tracker Node (figure below) that will have the high-alerting feature to catch high-volume transactions with abnormal value and frequency.
We envisaged that that mishaps such as NiceHash hack will be prevented with our robust and highly tested Tracker node supporting our platform. The tracker node has transaction data thread running non-stop to monitor expected inbound and outbound transactions of normal value while at the same time notifying or alerting the system of exceptions and anomalies, violating the transactional data rules. For example, a full KYC process is triggered when such rule is fired where more than one signature is required for substantially large value transaction. As any value in the transfer is not what X has requested, the system sends out an alert to X and admin’s as there might be a security issue, the system automation software locks all transfers until 3 admins reapprove the system.