A recent HackerOne report has revealed that hackers have been awarded around $878,000 in bug bounties over 2018.
Blockchain technology is often revered for its security, but that does not mean it is impenetrable. Exploits can still exist within the code, and blockchain companies have reportedly received at least 300,000 vulnerability reports in 2018.
A ‘bug bounty’ is a program that is offered as a deal to website and software developers. The purpose of a bug bounty is to detect issues in security such as exploits and vulnerabilities. Developers will attempt to hack the program and, should they be successful, report the security flaws to the company and claim a reward. HackerOne, a breach disclosure platform specialising in providing the latest information on all things related to hacking, have stated that blockchain companies awarded $878,504 in bug bounties to hackers in 2018.
Bug bounties are important as they allow companies to stay ahead of the game in terms of security. By inviting people to ‘break’ into software and disclose vulnerabilities, they are able to fix the issues before a hacker with ill intentions can cause a problem. There have been several big hacking incidents in the last few years, such as the Mt Gox incident, which has led to major exchanges losing a lot of money and wanting to do more to increase security.
According to HackerOne via TNW, “nearly 4% of all bounties awarded on HackerOne in 2018 were from blockchain and cryptocurrency companies.”
A spokesperson from HackerOne also revealed that “the average bounty for all blockchain companies in 2018 was $1,490, which is higher than the Q4 platform average of around $900. One of the top-paid crypto hackers earned 7 times the median software engineer salary in their respective country.”
These stats show that blockchain companies are willing to shell out big bucks to ensure that platforms are running as they should be without internal errors in the code. This is further substantiated by HackerOne, who revealed that there are currently 64 blockchain companies on its platform at present.
Block.one, the original creator of popular cryptocurrency EOS, is the most notable company to have invested in bug bounties. It is reported that Block.one accounts for more than “60% of all bounties handed out in 2018.”
The reports from HackerOne are certainly revealing in more ways than one. On the one hand, it is positive to see blockchain companies paying money to prevent hacks, but at the same time, with more and more being invested in bug bounties, it also shows that blockchain technology is not totally secure and there is potential for more hacks to occur in the future.
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