How Do Crypto Companies Stay Secure? Grineo Partner Hashlock Shares Insights
Grineo has partnered with industry leading blockchain security and Web3 auditing company Hashlock to ensure the security and safety of our users.
Based in Sydney, Hashlock has used its cybersecurity expertise to audit Grineo and check for any potential security risks in accordance with AUSTRAC regulations.
Hashlock is now conducting its security check of all aspects of our services here at Grineo. In the meantime, we took the chance to sit down with Hashlock Director Fletcher Roberts and ask some questions about how blockchain auditing works and the nature of today’s industry from a security perspective.
Contents
- How do You Audit Blockchain and Crypto Companies?
- How Will Hashlock Audit Grineo?
- How Important is an Audit, and How Common Are Audits?
- What Sets Hashlock Apart From Other Security Researchers?
How do You Audit Blockchain and Crypto Companies?
According to Roberts, the auditing process is understandably a lengthy and complex one.
“At Hashlock, our security audit process is meticulously designed to identify vulnerabilities and ensure the robustness of blockchain applications. Our approach involves several stages.”
Initial Assessment
Hashlock starts with a comprehensive analysis of the project’s architecture and codebase. This helps Hashlock understand the project’s scope and identify potential risk areas.
Manual Review
Hashlock’s expert security researchers conduct a thorough manual review of the code. This involves scrutinizing smart contracts and blockchain protocols to identify subtle and complex vulnerabilities that automated tools might miss.
Security Testing
Hashlock performs extensive security testing, including penetration testing and simulated attacks, to evaluate the system’s resilience against real-world threats.
Reporting and Recommendations
After the audit, Hashlock compiles a detailed report outlining all identified vulnerabilities, their potential impact, and recommendations for mitigation.
Follow-up and Verification
Hashlock works closely with the project team to address the identified issues and verify the effectiveness of the implemented fixes.
How Will Hashlock Audit Grineo?
Hashlock will go through each stage of its process with Grineo step by step, from manual review and testing to reporting, recommendations, and verifying the results.
“For Grineo, we will follow this comprehensive process, ensuring that every aspect of their platform is rigorously tested and secured. Our goal is to provide Grineo with actionable insights to enhance their security posture and protect their users.”
We’ll update with another post as soon as the auditing process is complete!
How Important is an Audit, and How Common Are Audits?
Roberts stated that in the current Web3 landscape, having a security audit is absolutely critical. The decentralized nature of these technologies, combined with the significant financial assets they handle, makes them attractive targets for cybercriminals.
“A security audit helps ensure that a project is secure, trustworthy, and resilient against potential attacks.”
However, many companies remain unaudited in Web3, potentially leaving their users at risk.
“Despite the importance of security audits, a significant number of projects dealing with user deposits remain unaudited. While the top-tier and more reputable projects typically undergo thorough security audits, many smaller or newer projects might skip this crucial step due to cost constraints or lack of awareness. This creates a risky environment where users’ funds can be vulnerable to attacks.”
With an estimated $221 million AUD lost to crypto scams in Australia in 2022, security is absolutely paramount in the industry, especially as the space grows and attracts more newcomers.
What Sets Hashlock Apart From Other Security Researchers?
We asked Roberts the pressing question of ‘who audits the auditors’, and how end-users can be sure that the company auditing their services are reputable.
“The auditing industry itself is not immune to quality control issues. There are instances where sub-par auditing services may greenlight projects without conducting thorough due diligence. This can occur due to a lack of expertise, pressure to deliver fast results, or even conflicts of interest.
Hashlock sets itself apart through our commitment to excellence and integrity. Our security researchers are highly skilled professionals with extensive experience in blockchain and cybersecurity. We adhere to the highest standards of transparency and thoroughness in our audits. Additionally, we continually update our methodologies to stay ahead of emerging threats and ensure that our audits provide real value and security assurance to our clients.”
What are the Main Risks to Crypto Users Today?
The main risks to crypto’s end users today include phising attacks, smart contract vulnerabilities, as well as of course, rug pulls and exit scams by fraudulent projects.
Phishing Attacks
Users are often targeted by sophisticated phishing schemes designed to steal their private keys and access their funds.
Smart Contract Vulnerabilities
Bugs and vulnerabilities in smart contracts can be exploited by attackers to drain funds.
“In recent years, we have noticed a trend towards more sophisticated and targeted attacks. Cybercriminals are increasingly using advanced techniques to exploit specific vulnerabilities in blockchain systems.”
Rug Pulls and Scams
Fraudulent projects can deceive users, leading to the loss of their investments.
Additionally, the rise of DeFi has introduced new attack vectors, such as flash loan attacks, which have become more prevalent. It is essential for users to stay informed and vigilant, and for projects to invest in robust security measures to protect their platforms and their users, according to Roberts.
Staying Secure With Grineo
Grineo is an AUSTRAC-regulated service that offers PassKey protection on all user accounts, meaning even Grineo staff can’t access user passwords. As a member of the Digital Economy Council of Australia, Grineo is required to maintain the highest standards of security and business practices.
A Hashlock audit will further establish our service as one that can be relied on safely for Australian crypto and digital asset users.
We’re very pleased to offer a secure, regulated service that allows users to spend and withdraw stablecoins like cash worldwide, and you can expect more updates on our security audit very soon.
