Web3 Security Concerns and New Alliances

In a significant move to bolster security within the Web3 ecosystem, UTONIC Protocol and TonBit have announced a strategic alliance aimed at addressing vulnerabilities in the TON and Telegram platforms. This partnership comes in the wake of a recent attack on a popular Telegram trading bot, highlighting the urgent need for enhanced security measures.

Key Takeaways

• UTONIC Protocol and TonBit form a security alliance to protect TON and Telegram ecosystems.
• Recent attacks on Telegram trading bots underscore the need for improved security.
• The alliance introduces a hybrid approach to private key storage using MPC and AVS.
• Comprehensive security strategies will be implemented to safeguard user assets.

The Need for Enhanced Security

The recent attack on DEXX.ai, a Telegram trading bot, resulted in significant losses, including the exposure of users' custodial wallets. This incident revealed that many trading bot applications rely on centralized methods for private key storage, making them susceptible to single points of failure.

In response, UTONIC Protocol has partnered with TonBit to develop a more secure solution that combines Multi-Party Computation (MPC) and Actively Validated Services (AVS). This innovative approach aims to decentralize private key storage, thereby enhancing security for users.

Hybrid MPC + AVS Approach

The new security framework proposed by UTONIC involves a hybrid model that divides users' private keys into three shards:

• User's Device
• The Trading Platform
• UTONIC’s AVS Network

Each transaction will require a 2-of-3 multi-signature, ensuring that no single entity can access user funds independently. This design not only enhances security but also aligns the economic incentives of validators with the stability of the protocols involved.

Comprehensive Security Strategy

UTONIC Protocol's security strategy includes:

1. Periodic Asset Snapshots: Regular snapshots of assets to ensure accurate reporting and enhance security without moving assets.
2. API Access for Scanning: Projects within the TON and Telegram ecosystems can utilize the UTONIC AVS API to scan and verify critical modules, preventing potential attacks.

This strategy is particularly beneficial for sectors like gaming and finance, where security is paramount.

Addressing Security Limitations

While the TON Blockchain is designed to be open and decentralized, it still faces inherent security challenges. The centralized elements within Telegram's infrastructure and the blockchain's core design present vulnerabilities that need to be addressed.

The security alliance aims to provide a complete solution, which includes:

• Security Audits: Conducting preliminary audits to identify vulnerabilities.
• Ongoing AVS Protection: Implementing continuous validation and regular asset snapshot reporting to ensure ongoing security.

Members of the Security Alliance

The alliance comprises several key players in the Web3 space:

• UTONIC Protocol: A revenue-sharing restaking layer for users on TON and Telegram.
• TonBit: A security expert providing smart contract audits and building tools for the TON ecosystem.
• Particle Network: An industry leader in chain abstraction, endorsing UTONIC’s security approach.
• PinkPunk: A smart trading bot team dedicated to implementing advanced security solutions.

Conclusion

As the Web3 landscape continues to evolve, the formation of alliances like that of UTONIC Protocol and TonBit is crucial for enhancing security measures. With the rise of scams and phishing activities in the crypto space, this partnership represents a proactive step towards safeguarding user assets and ensuring the integrity of the TON and Telegram ecosystems.

Sources

• UTONIC Protocol and TonBit join forces to form security alliance for TON and Telegram, Cointelegraph.
• Web3 encryption security data report: Be cautious in the bull market and beware of profit phishing - PANews, PANews.