Can decentralized finance (DeFi) overcome its vulnerability to hacking by implementing additional layers of decentralized technology? An Israeli cybersecurity company, Ironblocks, is launching a new initiative to achieve this goal.
The company is introducing Venn, a Web3 security layer, which aims to establish a new economic framework for cryptocurrency security, as stated by its creator and Ironblocks' CEO, Or Dadosh. Venn's approach involves connecting security experts with cryptocurrency applications that require enhanced transaction monitoring. Participating DeFi applications may offer cryptocurrency incentives to auditors and cybersecurity firms that scrutinize pending transactions. This process takes place before the actual execution of cryptocurrency transactions.
In the Venn model, transactions are first routed through the network, where security operators identify and halt suspicious activities, while regular transactions are forwarded to the blockchain for confirmation. According to Dadosh, this mechanism functions similarly to a firewall in the Web2 environment. Notable DeFi players, such as Ether.Fi and Ethena, are joining Venn's public testnet, along with several security firms. The network will be distributed across these firms, which will operate as node operators.