Bitcoin may have been labeled as the “world’s most secure transaction settlement layer” by Anthony Pompliano, but the situation might not be the same with regards to the business surrounding this.
Crypto startups have shelled out over $878,000 in bounty to white hat hackers in the year 2018.
Technology news website, TheNextWeb reported on December 30 that around $878,000 in bug bounties had been awarded to White hat hackers this year.
What are Bug bounties? – They are a type of competition in which projects or businesses that develop various software call upon the hackers to hack their software and reliably disclose the weaknesses or loopholes so that the companies can mend the loopholes and fix them before those are broken and exploited.
The TheNextWeb also reported that Block.one was the major contributor for this. Block.one is the company which manages the EOS.
The hackers earned almost 60 percent of the bounty (Almost $534,000) on the HackerOne platform. HackerOne is a bug bounty platform which connects companies with hackers. In fact, the entire 60 percent of the entire Bounty given via HackerOne this year was handed over by Block.one to the hackers.
Considering the fact that the startup, EOS – which was also one of the most talked about cryptocurrencies of all-times, was able to collect an approximated $4 billion from its EOS token offering, it surely is a sensible decision by the company to out-go such a sum to the White hat hackers to rectify their loopholes.
The second position in giving out the Bounty was Coinbase. The irony here is Coinbase was apparently known to be unhackable. Coinbase paid around $290,381 in the form of bounties to the White Hat Hackers.
Tron, headed by Justin Sun, followed Coinbase and was at the third position in spending Bounties. They spent around $76,200 on the White Hat hackers.
As disclosed by a HackerOne spokesman, Close to four percent of all money given in the form of bounties on the HackerOne platform was for blockchain vulnerabilities. The average award this year in the overall blockchain industry was $1,490, while the average on HackerOne platform in Q4 2018 was around $900.
The bottom line is though many crypto projects, blockchains, and cryptocurrency startups display a big business, they remain susceptible.