The solution to Cryptocurrency Hacks: Quantstamp?

Why have large industries, such as the finance and e-commerce sectors, not implemented a system that does not require trust in third parties, is immutable and easily verifiable like smart contracts and blockchains? There is natural fear in relying on very new systems like the “blockchain” to support processes that have not changed for decades. There is a feeling that the applications built on blockchains, “smart contracts”, are not sufficiently robust and safe to use for large scale projects. Cryptocurrency hacks are still holding the industry back. 

And really who can blame them, we’ve seen so many hacks in Ethereum’s smart contracts accounting for millions of dollars. The Coincheck hack and The DAO hack resulted in a combined loss of over $700 million. These incidents and more have created a negative perception of this new emerging technology. To increase the adoption of smart contract technology, it is increasingly important to maintain high levels of security and avoid being hacked.

The problem is that “Solidity”, the code used to write smart contracts in Ethereum, is very new and complex. There is a lack of programmers with experience in this language and too much demand in an industry that is growing more and more every day. The lack of quailed developers creates an environment where smart contracts are written in haste by unqualified programmers…they make mistakes and cryptocurrency hacks can cost millions. 

This is where QUANTSTAMP comes in      

Quantstamp is a protocol to ensure smart contracts. It focuses on securing the application layer working on top of protocols like Ethereum. It is the first scalable, verifiable security audit protocol designed to find vulnerabilities in Ethereum’s smart contracts.

Quantstamp aims to address these issues by offering a decentralized security audit platform. It uses an automated software verification system that can detect these bugs/ vulnerabilities before they get exploited and identify attacks as they happen. By using a series of active nodes, the required computing power is shared, adding both decentralization and redundancy. If a node falls, the network continues to operate, which guarantees that the smart contract is still protected. They also implement a bounty reward system for locating vulnerabilities, radically changing the incentives for bad actors to identify and report failures in exchange for a prize. 

The Audit Network

The Quantstamp audit network is a specialized network that connects developers, investors and users around a fully transparent audit test. The network enables automatic checks for vulnerabilities in smart contracts and rewards users who identify errors. The “tokens” of Quantstamp allow the platform to operate in a scalable and totally decentralized manner, providing rates for verifying/auditing contracts to the verifying nodes and rewarding them for locating vulnerabilities. 

90% of cryptocurrency hacks can be reduced greatly just by doing a few simple checks. The remaining 10% requires more in depth analysis by trained professionals.

The QSP Token 

Quantstamp raised $30 million total during their ICO and have become the first crypto project to be accepted into Y-Combinator. The QSP token has already been added to Binance, the largest alt-coin exchange in the world.  Quantstamp CEO has prioritized returning value to early investors and hodlers of the token with a proof-of-caring concept that air drops tokens with projects that they partner with for audits. So when Quantstamp audits a new project, QSP hodlers get rewarded with tokens from that project. 

A solution to cryptocurrency hacks

In the future I can imagine the Quantstamp logo on the page of any company working with smart contracts. The Quantstamp approval seal could give users and companies confidence that the code of has been audited and verified. I believe that companies like Quantstamp are incredibly important for smart contracts and blockchain based solutions to be adopted by the masses. Cryptocurrency hacks can and will be overcome when the industry adopts solutions like Quantstamp. 

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