Smart Firewalls: The new dApp defenders

Transcript

[Music] thank you [Music] hello

hey everyone thank you for joining my name is oh I'm the co-founder and CEO of iron blocks I led a smart Contour team in Bangkok about five years ago and in 2018 yeah that's true sure in 2018 it was 6 A.M I got a phone call it was summer for my team my team in Benco and he said that there is a person over the support group on tarragon and it's time to convert some tokens and they got an error message over the web app the error message said

99 of slippage I took my laptop and I started digging in I made some phone calls to my team members no one knew what's going on and then I started looking after the recent transaction there is an activity after a while I start calculating and I found out that 20 million dollars were liquidated out of that and then for 72 hours three days and three nights there were no trades over there no one could use it no one could trade no one could withdraw their fans I didn't eat I didn't sleep three days and three nights

and the team the community no one knew what's going on and the only thing that we actually know back then is the fact that the ecosystem is not ready to scale and it's not ready to mass adoption with this kind of security measures and finally we succeed to return about 10 million dollars out of the stolen amount because like an Israeli military operation and we also understood that something is missing that this is not the way to protect on web3 we also understood that Benco was lucky Becca was lucky because the fact that my partner Assaf and I we succeed to save more than 300 million

dollars that could be stolen out of the post and the only reason that we succeed to do that is the fact that we responded immediately and this is why we built we build iron blocks iron blocks provides real-time detection and responding so for Security Suite and it allows the protocols to reduce the chance of being hacked it means that it allows them to respond some time in response within milliseconds and more than that like we understood back then that if it happened to us it can happen to anyone it can happen to anyone

because Security today and also back then centers around code if you are talking about bad bounties or audits or formal verification which are super important but this is code what about what about compromise private keys for example or workers or Market assumptions this is not code and until last year until 2022 no one really did or provide real-time security system for web3 and even if some project want to have some monitoring there to create that by themselves from sketch

it was highly complicated there were no tours back then during 2022 and the maintenance was it was it cost a lot during the last year we can see that there are a lot of detection companies a lot of monitoring services and some are more precise it brought a lot of confidence that was missing into this ecosystem however to prevent an attack a good detection system must come together with a good prevention system and today the most common way to prevent an attack the most common prevention solution is posing posing mechanism it means that posing

it's both the old protocol basically it's more it's common in most of the project and like it has several drawbacks like the first drawback is about the time that it takes to activate it usually it's backed by multisig and those signers based in different locations around the world usually in different time zones and can take hours until it's getting activated we can see the recent acts that happen there in the last few months how much time it took to activate this mechanism more than that the usability of the protocol even legit users they can't use the app or with all the funds during the time that the protocol is posed and if you think about your bank

I don't feel that it makes sense or you will think that it makes sense that you wouldn't be able to withdraw your funds if the band think that there is another client that made the suspicious or malicious action and then the bank block all the other kinds of withdrawing their funds we can improve that even today we can improve that with circuit breakers for example circuit breakers in the traditional world it works in a way that like does some indexes that for example the S P 500 if it drops by seven percent or more there is an automated secret Breakers that get inactivated

and suppose the all trades no one can use the threats and it's actually to protect on the global economy in web3 we can apply a very similar Technique we can apply a technique that allows to pose a specific liquidity pool or specific word we can apply that in like to pose a specific to reduce the withdrawal limits for example we can also oppose the protocol for a very certain amount of time and it actually allow us to balance between risk management on the one end and on the other hand we can balance between risk management and the uh sorry and there's the ability of the protocol

and if we think about that there are several projects that already apply this system for example Ave over there it's possible to post a specific pool instead of posing the or protocol and we can improve that even more for example two weeks ago one of our employees she went to see her family in Colorado she went from Tel Aviv to Colorado see our family and she booked some Hotel she booked some flights to this conference for us over here and I got about 15 text message from MasterCard to verify my identity what happened over there is that MasterCard they saw that there is

unusual activity for example unusual location unusual amount within those transactions and they actually sent me the verification code each time to make sure that I'm the actual person who commit those transactions with this understanding in iron blocks we apply a very similar technique to protecting transactions in web3 it means that we are capable to verify transactions before they are getting executed within the base layer if we are talking about the building blocks of this entire ecosystem centralization privacy transparency it's our job to make sure that we kept on those building blocks on behalf of

the users into the new era in iron blocks we build the most exciting solution in web 2 Security today it's a full security network and it allows us to verify the transaction before they are getting executed within the base layer it means that we actually remove surgically specific transactions and move them into a different security funnel and the other users of the protocol the legit ones can continue to use the protocol in the same time it's completely decentralized it's private and it's transparent it's the most precise solution today

with the best user experience out of all the existing Solutions and if you are talking about decentralization so and if you ask yourself why swans by the way so once usually the flying groups and as we said that like if there is a new Swan or a new member that want to join the group they need to approve them and if one of them drop-offs they continue moving as we said that the decision whether a transaction is legit or not it should be taken by different detection providers not single one to make sure that we keep on decentralization

and if we are talking about privacy we believe that there is there shouldn't be any third any any survey the person that can understand or can take any advantage over over the person who committed transaction and more than that we believe that the transaction that and the user data must remain private and if we're talking about transparency protocols users and their communities should be able to understand what the processes that their transaction are going to go through and be able to choose whether they are okay with that or not so if you build the detection system

we want to work with you we want to collaborate with you to make this ecosystem much more safer for everyone if you have a project in webtream up and running think about prevention think about detection or monitoring This is highly important and if you build the project right now think about embedded security read about that it's super interesting within your smart contacts by the way I hope you enjoyed and thank you thank you

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