As cryptocurrency exchanges has faced a lot of cyber attacks and other security issues these days, there is no surprise that the majority blockchain-based platforms are seeking to improve their defenses and to reassure users that the exchanges can be trusted with both their private data and hard-earned funds.
Buglab represents itself not a cryptocurrency exchange, but a cybersecurity solutions startup that aims to help exchanges protect themselves more effectively. Being a young startup at the dawn of its development, Buglab has recently announced that the company has the amount of its native BGL tokens equal to $2,000,000, which it plans to give out to cryptocurrency exchanges and cybersecurity researchers that take part in its penetration testing contests.
Buglab represents itself an Ethereum-based decentralized platform which aims to connect organizations requiring assistance with a global network of cybersecurity experts, who are eager to test their systems. The cybersecurity platform operates an innovative reward system called the ‘Vigilante Protocol’ which offers rewards to testers that expose and repair system vulnerabilities.
The operation works in conjunction with computer emergency readiness teams (CERTs) to confirm discoveries and warn companies of security threats. Buglab was founded by Reda Cherqaoui, a cybersecurity veteran who has been involved with the scene since he was a teenager. Cherqaoui has previously worked with household names such as Facebook, Hotmail, Yahoo and eBay to improve their cybersecurity.
Just two weeks prior to the Buglab announcement, two large South Korean exchanges were hacked, with over $70 million in multiple cryptocurrencies stolen. Conrail, a leading exchange, was hacked on June 9, followed by Bithumb, one of the largest exchanges in the world, on June 20. The attacks sent shockwaves through cryptocurrency exchanges and users groups alike. Unsurprisingly, there was also a detrimental effect on the market. Exchanges are now scrambling to shore up their security systems and reassure users.
In response to the cyber-attacks, Buglab has released a private beta version of its platform. Exchanges that agree to run a launchpad or promote the platform’s token sale will get free penetration testing, which can seek out system weaknesses and potential threats.
Exchanges taking part in Buglab’s contest will have a chance to win $20,000 under its enterprise scheme, with a $10,000 prize for the top three winners. As an added incentive, Buglab has said it will give away $10,000 in BGL tokens to the exchange with no critical vulnerabilities found as a special reward for its cooperation.
Regarding the future of cryptocurrency exchange, Buglab CEO, Reda Cherqaoui stated that
crypto-exchanges should be concerned about securing the funds of their traders, as these funds equate to billions of dollars. With new exchanges launching every week and increasing danger of security breaches, the company aims to provide the industry with a secure, cutting-edge service to help mitigate against these increasing risks.
With digital financial markets growing exponentially and hackers becoming ever more adept and equipped, cryptocurrency exchanges will need to be more vigilant. Constant monitoring will be required, and knowledge and technical skills will have to be updated regularly. Given also that there are not enough cybersecurity experts worldwide, Buglab will likely have no shortage of customers wishing to improve their security and defend against the increasing number of threats.