Quantstamp Has Identified a Problem and Knows Just How To Fix It.
If we consider the DAO, the Parity multi-sig hack and other well-known hacks, currently over $80 million dollars worth of Ether has been stolen because of faulty smart contracts. Despite these hacks, smart contract code has not improved. A recent study found vulnerabilities in 45% of existing smart contracts and the number of contracts on Ethereum has exploded to over 2 million that collectively hold over 12 million Ether. This means that potentially $1.6 billion USD worth of Ether is currently vulnerable to exploitation.
Quantstamp is developing a protocol that aims to audit smart contracts and help to stop smart contract based hacks from happening in the future. Quantstamp is creating an off-chain network in which all of their audits will occur. The company has nodes on their network that will automatically audit smart contracts. Are you concerned that Quantstamp’s mathematical auto-audit system may miss a fatal error in a smart contract? Don’t worry! The company has also planned to initiate a bounty system that incentivizes highly skilled hackers to audit and review smart contracts after they have been automatically audited.
So far, the team has only completed one security audit to date. This indicates there is still a lot of work to be done. In my opinion, the team couldn’t be in a better position talent-wise to accomplish their goal. The team consists of experts in the security field from companies ranging from Google, Amazon, Tower Research, Experian and the Canadian cryptologic national agency.
Quantstamp has an idea that, if successful, could revolutionize the standard to which we hold smart contract creators too. This will not only help made the crypto space safer for newcomers to learn about the industry, but also move public blockchain technology towards the point where it becomes mainstream.