Home Bitcoin Guide Hacker Scoops Up $2 Million Bounty After Recognizing Deadly Flaw In Ethereum Rollup

Hacker Scoops Up $2 Million Bounty After Recognizing Deadly Flaw In Ethereum Rollup

Hacker Scoops Up $2 Million Bounty After Recognizing Deadly Flaw In Ethereum Rollup

A hacker has made off with $2 million in bug bounty after discovering an alarming vulnerability with the Ethereum community. This bug might have been very dangerous if it had been discovered by black hat hackers who might have exploited the digital asset for billions of {dollars} price of ETH. As a substitute, a ‘gray hat’ hacker popularly referred to as Saurik knowledgeable the Ethereum group of the vulnerability, netting himself a large reward in return.

Discovering The Vulnerability On Ethereum

Hacker Saurik had discovered the vulnerability on Optimism, an Ethereum layer 2 rollup answer. The hacker himself revealed a report as to how he discovered the vulnerability on the answer. Wanting via nano funds protocols on the rollup, he had discovered a vulnerability that might permit an attacker to withdraw unbridled a ‘nearly limitless’ quantity of ETH from the answer.

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It was just like the assault methodology deployed on widespread sensible contracts blockchain Solana that resulted within the $353 million hacks on Wormhole. Optimism, like Wormhole, mint what are referred to as “Wrapped Ether.”  Customers deposit their Ether on the sensible contract to mainly function collateral and they’re even these tokens that solely exist on Optimism’s community. They then use nano funds protocol to make transactions quicker and faster.

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Saurik who’s famously identified for growing the Jailbroken iOS had confirmed the vulnerability. Nonetheless, as an alternative of exploiting the vulnerability for his personal private acquire, the self-styled gray hat hacker had reported it to the Optimism devs. In return, Saurik was rewarded with a $2 million bounty for his altruism, which has helped to make the community and layer 2 rollup safer for customers.

Debunking Standard Rumors

After information of the vulnerability and subsequent bounty fee broke, there have been rumors circulating relating to what an attacker might have finished with it in the event that they selected to not report it to the devs. The preferred of those has been that the attacker would have been in a position to withdraw a vast quantity of ETH from the community. Whereas this has some benefit to it, it’s largely false.

Firstly, the vulnerability exists on a layer 2 rollup answer Optimism. Whereas the protocol exists on the ethereum community, it isn’t the community itself. Which means that the vulnerability was localized to the protocol alone. So whereas an attacker would have been in a position to exploit this to withdraw an ‘limitless’ quantity of ETH, they might solely withdraw the out there steadiness on the Optimism deal with.

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However, it’s nonetheless no secret that the outcomes would have been devastating for customers of the layer 2 protocol if a black hat hacker had discovered the vulnerability. This occasion speaks volumes in regards to the usefulness of bug bounties. Whereas the rewards for these bounties could appear too giant at first, one should take into consideration what the choice could be if there was no incentive for hackers to come back ahead with their findings. White hat hackers little doubt assist to avoid wasting hundreds of thousands, if not billions, of {dollars} yearly.

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