Israeli Web3 Security Startup Blockaid Raises $33M in Funding Round
Blockaid, an Israel-based Web3 security startup, has announced that it raised $33 million in its latest funding round. The round was led by Ribbit Capital and Variant, with participation from Cyberstarts, Sequoia Capital, and Greylock Partners. The capital injection will be used to expand Blockaid’s product offerings, customer base, and team to address ongoing security challenges in the Web3 space.
The company, founded last year by alumni of Israel’s Unit 8200 cyber intelligence unit, has emerged from stealth mode and revealed its inaugural customers, including Metamask, Opensea, Rainbow, and Zerion. Blockaid aims to protect users from attacks such as fraud, phishing, and hacks.
Blockaid offers two security solutions: the dApp Scanning Engine and the dApp Scanning Sandbox. The dApp Scanning Engine emulates user actions in a decentralized application (dApp) to determine if they are malicious. The dApp Scanning Sandbox safely simulates user interactions with a dApp without risking any user assets.
The company claims to be compatible with any blockchain network and is the only provider capable of simulating off-chain signatures described in EIP-712 effectively. This enhanced security is crucial for Web3 wallets as there are many malicious sites that attempt to deceive users into emptying their wallets.
Blockaid’s Role in Vitalik Buterin’s Twitter Incident
Blockaid’s technology played a crucial role in protecting over $100,000 in user assets during the Twitter incident involving Ethereum co-founder Vitalik Buterin. The company was able to detect the wallet drainer published on Buterin’s compromised Twitter account before any users were connected to the malicious site.
However, the incident still resulted in $700,000 in losses from wallets that were not protected by Blockaid. This incident highlights the existing risks and the need for enhanced security in the Web3 space.
Blockaid’s goal is to make the industry safer so that more users can confidently use Web3 technology. By providing transaction signing with confidence and reducing malicious activity, Blockaid aims to create a safer environment for mass adoption.
Hot Take: Improving Web3 Security with Blockaid
Blockaid’s recent funding round and its innovative security solutions demonstrate its commitment to addressing the ongoing challenges in the Web3 space. With its dApp Scanning Engine and dApp Scanning Sandbox, Blockaid offers added protection for users without additional costs or efforts.
The company’s compatibility with any blockchain network and its ability to simulate off-chain signatures set it apart from competitors. By safeguarding user assets and detecting malicious sites, Blockaid aims to create a safer environment for Web3 adoption.
With incidents like the Vitalik Buterin Twitter hack, the importance of robust security measures cannot be overstated. Blockaid’s technology has already proven its effectiveness in protecting user assets, but there is still work to be done to ensure the widespread adoption of Web3 technology.
Ribbit Capital and Variant led the round, with participation from Cyberstarts, Sequoia Capital, and Greylock Partners.
The capital injection will be used to expand Blockaid’s product offerings, customer base, and team, all aimed at tackling ongoing security challenges within the Web3 space, including fraud, phishing, and hacks.
Launched last year by alumni of Israel’s Unit 8200 cyber intelligence unit and recently emerged from stealth mode, Blockaid also revealed its inaugural customers, which include prominent names like Metamask, Opensea, Rainbow, and Zerion.
“Soon after starting the company, we got a quick seed investment and started to work with some of the biggest and best companies in the space to solve some of the biggest problems, primarily protecting users from nasty kinds of attacks,” Ido Ben Natan, co-founder and CEO of Blockaid, told Decrypt. “Since then, we’ve scanned over 450 million transactions, of which over 1.2 million have been malicious, securing over $500 worth of funds.”
How Blockaid’s Tech Works
Blockaid offers two security solutions. The first is its dApp Scanning Engine, which emulates user actions in a decentralized application (dApp) to determine if they are malicious. The second solution is the dApp Scanning Sandbox, which simulates user interactions with a dApp without risking any user assets. If any transactions within the sandbox are identified as malicious, the entire dApp is marked as malicious to protect all users.
End users benefit from an added layer of protection without incurring additional costs or efforts as both solutions are integrated into wallets. Blockaid is compatible with any blockchain network and can simulate off-chain signatures effectively.
Vitalik Buterin’s Twitter Incident
Blockaid’s technology played a crucial role in protecting user assets during the Twitter incident involving Ethereum co-founder Vitalik Buterin. The company detected the wallet drainer published on Buterin’s compromised Twitter account before any users were connected to the malicious site. However, wallets that were not protected by Blockaid still suffered $700,000 in losses.
This incident highlights the existing risks in the Web3 space and the need for enhanced security measures. Blockaid aims to create a safer environment for mass adoption by reducing malicious activity and providing transaction signing with confidence.
Source: Decrypt
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