EthCC Voices: Sebastien Banescu, Quantstamp & ChainProof Digital Asset Insurance
In this conversation, Sebastian shares that it has been an eventful 12 months from the Terra crash, FTX collapse, and the bankruptcy of SVB, to the SEC suing crypto protocols and exchanges. While this has led to security concerns in crypto, he believes the successful Ethereum Merge and Shapella upgrade has been positive for the Ethereum ecosystem.
Welcome to EthCC Voices, the Medium Series for the EthCC community. Taking place in Paris from 17–20 July 2023, the conference organised by Ethereum France is regarded as Europe’s leading Ethereum conference for the community by the community!
Sebastian Banescu is the CEO of Chainproof Digital Asset Insurance, the world’s first regulated insurer for non-custodial smart contracts and slashing risks. He is also the Managing Director of Quantstamp Germany, a global leader in web3 security.
What do you think are the highlight moments in crypto over the past year?
Firstly, we obtained our insurance license just before the Terra crash, which had a major impact. The crash acted as a catalyst, causing a chain reaction in the industry. It affected prominent names like Three Arrows Capital and Celsius, leading to some turbulence. Then, in November, the FTX incident occurred, which further instilled fear in institutional investors. As a result, our target market faced uncertainties, and we encountered challenges in closing deals during that period.
However, amidst all the chaos, there were also positive moments. One memorable occasion was The Merge last September, which generated excitement among the community. This enthusiasm spread through a live stream and left a lasting impression on everyone involved.
Another significant event this year was the Shapella upgrade. For us, it was a nerve-racking experience because we provide insurance against slashing, and during the upgrade, there were various events and difficulties faced by staking providers. Furthermore, in May, there was an attempted denial of service attack on the Ethereum network. Fortunately, thanks to the diversity of clients using different software, such as Prism, Teku, and Lighthouse, the network remained resilient and gracefully recovered once the attack ceased. This incident indeed demonstrated the strength of the network.
What impact do you think Ethereum updates this year will have on the overall ecosystem, crypto projects, and mainstream adoption?
The Ethereum updates this year have had a significant impact, especially for institutions. One of the key moments was the Shapella upgrade, which enabled the ability to withdraw funds. Prior to this upgrade, institutions faced limitations in staking their assets on Ethereum. For more traditional institutions, liquidity is crucial, and without the ability to withdraw, they were unable to fully participate. However, with the upgrade, the option to withdraw became available, which has attracted a considerable influx of institutional investors.
We can observe the effects of this upgrade by looking at the amount staked after the Shapella upgrade. The numbers have shown a notable increase, indicating the growing interest from institutions and family offices. When I mention institutions, it’s important to note that I’m not referring solely to banks. It encompasses various serious legal entities, and it extends beyond the retail sector.
How has being a part of the EthCC community impacted you/ your team thus far? Has anything come out of it?
Being part of the EthCC community has had a profound impact on us and our team. In my opinion, it is the premier conference for Ethereum in Europe. It is one of the two major conferences we prioritize attending each year, alongside Devcon. EthCC serves as a significant hacker conference in Europe, bringing together key players and enthusiasts in the Ethereum ecosystem.
Over the years, we have consistently sent a team of at least 10 people to EthCC. This has allowed us to forge new connections, make friends, and establish fruitful partnerships. The conference has served as a platform for forming valuable customer relationships as well.
Personally, I have a strong interest in staking, and EthCC has been an excellent opportunity for me to engage with both direct staking providers and liquid staking providers. These conversations fall into different categories, but they are interconnected, and I eagerly anticipate the valuable discussions that will take place around these subjects at the conference.
In summary, being part of the community has provided us with a unique and enriching experience, enabling us to expand our network, foster partnerships, and stay at the forefront of the latest developments in Ethereum.
