Coinbase Wallet Incorporates Blockaid Security to Enhance User Protection and Fraud Prevention
Summary:
In late 2023, Coinbase Wallet incorporated Blockaid, a security tool aimed at enhancing user protection. The technology intercepts harmful interactions, scans transactions, and calculates possible theft attempts, so far saving an estimated $75 million. The integration allows the prediction of transaction results before they're broadcasted on the blockchain, improving fraud prevention. Aside from simulations, Blockaid also facilitates validation for identifying potentially malicious transactions. Additionally, it aids users to foresee outcomes of certain cryptocurrency transactions. The collaboration has enhanced transaction simulations across seven chains including the Ethereum network and six others.
Late in 2023, the Coinbase Wallet, a self-custodial wallet under the management of Cryptocurrency marketplace Coinbase, assimilated the Blockaid security software. According to a joint statement released to Cointelegraph on March 13 by both Coinbase Wallet and Blockaid, the incorporation of the new technology took place five months earlier, in a move aimed at enhancing security for Coinbase clientele.
Using the Blockaid software, Coinbase claims to have secured upwards of $75 million, preventing potential thefts. This success was achieved, as per the declaration, by the interception of approximately 800,000 wallet interactions with harmful decentralized applications (DApps) by scrutinizing and examining 114 million transactions and DApp connections in total.
The figure of $75 million represents at least the lowest estimate of the scams identified by Blockaid, as stated by Raz Niv, Blockaid's Chief Technology Officer. "It collectively registers all the transaction warning screens presented to Coinbase Wallet users and calculates the blocked value in these transactions."
The integration of Blockaid particularly enhances transaction simulation - a safety feature designed to forecast a transaction's result prior to it being sent to the blockchain. This technology allows the system to foresee potential outcomes of specific cryptocurrency trades, subsequently enhancing the prevention of fraudulent activity.
Coinbase reportedly implements three Blockaid APIs to install additional buffers of safety for customers while traversing DApps, transacting with Web3 protocols or addresses, as well as on-chain messaging. Utilizing Blockaid, Coinbase Wallet users can have better insights into verifiable and potential aftermaths of signing a transaction. This includes both on-chain transactions such as Ether (ETH) transfers and off-chain transactions including a Seaport order on OpenSea.
In addition, it has refined transactions simulations across at least seven chains inclusive of the Ethereum network and six other compatible Ethereum Virtual Machine (EVM) chains, as reported by Coinbase's senior engineering director, Chintan Turakhia. Supported EVM-compatible networks incorporate Base, Optimism and Polygon.
The report jointly issued underlines that transaction simulation technologies alone don't furnish sufficient security infrastructure. Validations, the system determining the malicious potential of a transaction, when allied with simulation delivers extensive transaction security. A warning is flagged to Coinbase Wallet customers on their verification screen if a transaction turns out to be malevolent.
Prominent EVM MetaMask wallet adopted Blockaid’s transaction security technology, providing security alerts since November 2023. In February 2024, MetaMask announced the extension of standard security alerts to various blockchains including Linea, BNB Smart Chain, Polygon, Arbitrum, Optimism, and Avalanche.
Published At
3/13/2024 4:10:03 PM
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