How to stop cryptocurrency or DeFi hackers? (HAPI)

Boxmining

24.0K views 468 3 years ago

Description

What can you do if you are the victim of a cryptocurrency, decentralised finance (DeFi) or smart contract hack? Is there a way to get your funds back? HAPI is the FIRST cybersecurity oracle for the De...

What can you do if you are the victim of a cryptocurrency, decentralised finance (DeFi) or smart contract hack? Is there a way to get your funds back? HAPI is the FIRST cybersecurity oracle for the DeFi space which will stop hackers from further transferring the stolen funds by warning other centralized or decentralized exchanges (CEXs, DEXs) or entities from accepting the stolen funds, leaving them with nowhere to send or use the funds. 0:00 Introduction 2:38 What is HAPI? 4:17 How does HAPI work to stop hackers? 7:22 Cybersecurity facts: why is it important? In this video, Nate, Gemmy and I explain how HAPI works to stop hackers and protect the cryptocurrency space. Learn more about HAPI: https://www.hapi.one Check out Nate's YouTube: https://www.youtube.com/c/Cryptonauts Top 10 blockchain security and smart contract audit firms: https://boxmining.com/top-blockchain-security-firms/ ●▬▬▬▬▬▬▬Recommendations▬▬▬▬▬▬▬● 📖 Guides, tutorials and insights: https://boxmining.com/ Recommendation List: https://www.cryptoatlas.io/Boxmining 🌼Buy & Sell Bitcoin: https://join.swissborg.com/r/michaeOQZM 🔒Hardware Wallet: http://boxmining.co/ledger 👍🏻Brave Browser: http://boxmining.co/brave 📲Bybit Exchange (Most powerful): https://partner.bybit.com/b/boxyt 📲Binance Exchange : http://boxmining.co/binance ●▬▬▬▬▬▬▬▬▬▬Community▬▬▬▬▬▬▬▬▬● Boxmining clips: https://www.youtube.com/channel/UCjFy3VBgOZanySOLhQu6GaQ Boxmining News Website: https://www.boxmining.com/ Telegram Announcements: https://t.me/boxminingChannel ●▬▬▬▬▬▬▬▬▬▬▬Social▬▬▬▬▬▬▬▬▬▬▬● Twitter: https://twitter.com/boxmining Discord: https://discord.gg/9qCpqpZm8G Facebook: https://www.facebook.com/boxmining ●▬▬▬▬▬▬▬▬▬▬Disclaimer▬▬▬▬▬▬▬▬● I'm not a professional financial adviser and you should always do your own research. I may hold the cryptocurrencies talked about in the video.

AI Analysis

Hey, so this video dives deep into a major headache in the crypto world: those huge hacks that seem to happen every other week. It talks about how scary it is when millions, or even hundreds of millions, of dollars get stolen, like the infamous $600 million Poly network hack (which, by the way, the presenter was unfortunately a victim of!). The main focus is on a project called HAPI, which is trying to be the superhero of DeFi cybersecurity by preventing hackers from moving stolen funds and making the whole crypto space a lot safer for everyone.

Here's a breakdown of what HAPI is all about and how it aims to tackle the hacker problem:

* The Problem: Crypto Hacks are Rife and Getting Bigger:
* Crypto hacks are super common, with new million-dollar incidents happening almost every week.
* Hackers are getting bolder, targeting larger amounts, with the $600 million Poly network hack being a prime example. It was a heart-stopping moment for the presenter when that news broke because their funds were affected.
* The big challenge is figuring out how to stop hackers from moving these stolen funds and how to track them once a hack has occurred.

* What is HAPI? The Cybersecurity Oracle:
* HAPI is the first security oracle specifically designed for the decentralized finance (DeFi) space.
* Simply put, HAPI helps the "good guys" identify stolen funds and warns everyone else not to accept them. This makes it impossible for hackers to spend their ill-gotten gains.
* It also protects DeFi projects from getting their platforms polluted with illegal, stolen money, ensuring everyone (except the hacker!) stays happy.
* This project is seen as incredibly important, especially with increasing regulations like FATF compliance coming into the crypto space.
* Technically, HAPI consists of cross-chain smart contracts that are embedded into DeFi products to boost their security. It supports many major blockchains like Ethereum, Solana, and Polkadot.
* It also uses an Oracle licensing and DAO (Decentralized Autonomous Organization) system to provide "SAAS" (Software as a Service) in a DeFi environment, which helps prevent hack attempts before they even happen.

* How HAPI Works to Stop Hackers (The Nitty-Gritty):
* HAPI acts like a crucial middleman between centralized exchanges (CEXs) like Coinbase and Binance, and decentralized exchanges (DEXs) like Uniswap and SushiSwap.
* If a CEX is connected to HAPI, it gets an instant warning if stolen funds are deposited, allowing them to block those funds until the situation is resolved.
* For DEXs, HAPI's smart contracts and Oracle can identify suspicious wallet addresses and automatically reject transactions to prevent money laundering, which, as the presenter enthusiastically states, "sucks!"
* HAPI also maintains a security audit database. Exchanges can check if a smart contract has been audited. If not, they can notify traders about potential risks, set limits on trades, or even restrict operations with high-risk tokens.
* Let's imagine a scenario: A hacker takes over a CEX's hot wallet and tries to sell the stolen crypto on a DEX. The CEX immediately sends a signal to HAPI's data provider, flagging the hacker's crypto address (e.g., "0xEvilHacker") as blacklisted. When the hacker then attempts to use a DeFi smart contract, the request goes through the HAPI module. HAPI contacts its data provider, sees the address is blacklisted, and boom – the entire transaction is cancelled. The theft is foiled!
* This information is shared almost instantly across all exchanges connected to HAPI, preventing the hacker from trying to cash out elsewhere. The presenter strongly feels that the DeFi space absolutely needs projects like HAPI to make it safer to trade and grow.

* The HAPI Token ($HAPI): Integral to the System:
* The HAPI token is the native currency of the HAPI protocol and is an ERC20 token, meaning you can store it in any compatible wallet.
* Holding HAPI tokens essentially means you're part of the "DeFi industry security arbiters" who help coordinate between data submitters and security oracles.
* Every transaction submitted to the security oracle database requires HAPI tokens, which then get sent to the oracles as payment for their work. The data provider sets the price based on the demand for off-chain information.
* For those wondering, an "oracle" is basically a server that monitors real-world information changes (like crypto prices or bank data via an API) and feeds that information to the blockchain.
* From an investment standpoint, HAPI has a relatively low market cap and a very limited token supply. The presenter believes that because the token is so essential to the product's function, its value is "inevitable" to appreciate if it sees widespread adoption. They truly see HAPI as a project that could disrupt the DeFi space for the better and advise keeping a close eye on it.

* Why Cybersecurity is Crucial in DeFi:
* A striking statistic: DeFi hacks were responsible for 76% of all major hacks in 2021. This makes sense because, as the presenter points out, why steal user data when you can just steal their money?
* In blockchain, "code is law," emphasizing that the code must be perfectly written to avoid vulnerabilities. There are specific blockchain security companies (like Hacken, Quantstamp, CertiK) that audit this code.
* Stealing funds in DeFi is considerably easier than in the real world. Imagine stealing $600 million in cash – that's six tons, requiring a massive logistical operation with trucks and smuggling. In crypto, it's just a few clicks.

* Final Thoughts: A Needed Innovation:
* The presenter can't stress enough how quickly projects like HAPI are needed. With DeFi growing so fast and more and more money locked into its ecosystems, the opportunities for hackers are increasing.
* HAPI is seen as a vital tool to prevent hackers from successfully using stolen funds and, crucially, to deter them from attempting hacks in the first place.

Transcript

Almost every week we see a million dollar hack happening in the crypto space. And to make matters a little bit worse, hackers are getting bigger and bigger tickets, well they're getting bigger and bigger holes. With the last and most infamous one being a 600 million dollar hack on the Poly network. Now the hacker almost walked away with half a billion dollars of crypto. And as you guys know, I'm a victim of that hack. And literally when I saw that on the news, my heart like skipped for literall...

Almost every week we see a million dollar hack happening in the crypto space. And to make matters a little bit worse, hackers are getting bigger and bigger tickets, well they're getting bigger and bigger holes. With the last and most infamous one being a 600 million dollar hack on the Poly network. Now the hacker almost walked away with half a billion dollars of crypto. And as you guys know, I'm a victim of that hack. And literally when I saw that on the news, my heart like skipped for literally 10 seconds. I was just like... Now the next question is, how do you stop these hackers? Is there a way to prevent the hackers from moving these funds? And is there a way to track these stolen funds once a hack has occurred? And that's why today we're talking about the project HAPPY. It's doing exactly that. HAPPY is the first security oracle for the decentralized finance space. So in plain English, HAPPY is a way for the good guys to identify the stolen funds and warn everyone else not to accept it. This is really good because this way the hacker will have nowhere to spend that illegally obtained hacked funds. And it also protects projects and DeFi projects too, because this way they won't be polluting their vaults with stolen illegal money. This way everyone is happy. Except the hacker, he's sad. Why are we still here? Just to suffer? Oh no! I see this is a very huge project in this space, especially with regulations coming in and requirements for projects to comply with FATF. So anyways, if you guys want to learn more about this project, make sure you stay till the end of the video. We're going to give you a lot of insight into what is happening in HAPPY and the DeFi space. And of course, in this video, I'll be recruiting my friends Nathan and Jemmy to help with the video. And if you guys are interested in what they do, check out their channels. I'll put a link down below. Go check it, damn it! Alright, full disclaimer guys, this video is for educational and entertainment purposes. This is not financial advice. I'm not a financial advisor. So what is HAPPY? HAPPY is a set of cross-chain smart contracts that are embedded into DeFi products that allow them to reach a new security level. It supports cross-chain solutions for most blockchains such as Ethereum, Solana, Polkadot and many others. Also, HAPPY's Oracle licensing and DAO system delivers SAAS in a DeFi environment that prevents hack attempts. What the? Speak English, Jemmy! What does that mean? What does that even mean? So in simple terms, HAPPY acts like a middleman between centralized and decentralized exchanges. If connected to HAPPY, any centralized exchanges like Coinbase or Binance will be won in case stolen funds are deposited on their platform, which allows the exchange to block those funds until the situation is resolved. But what if the hackers are using decentralized exchanges to cash out? With the HAPPY smart contract and the Oracle taxes like Uniswap, Chusiswap will be able to identify suspicious wallet addresses and reject any transaction requests to prevent money laundering. Yeah, money laundering sucks! Yeah, screw money laundering! With a security audit database, decentralized and centralized exchanges can access info on whether the specific smart contract has undergone security audit. If not audited, the crypto exchange can notify the trader on possible risk or even impose a limit for buy or sell order amount or restrict any operations with such high-risk tokens. To better understand how HAPPY works, Nathan is gonna give you some examples and tell you more about the HAPPY token. Alright! What's up guys? Nathan here to tell you about an example. Let's take a look at a scenario so that you have a better picture of what's going on. Let's say a hacker has taken control of the CEX hot wallet and now would like to use a decentralized exchange to sell his stolen crypto. So he hacked Binance! Oh no! Ewww, CZ take a look at this! However, the CEX sends a signal to the HAPPY data provider with the hacker's crypto address. This crypto address, let's say 0xEvilHacker, is now blacklisted. The hacker attempts to use a DeFi smart contract and because of the HAPPY module, the request goes to the HAPPY smart contract. The smart contract contacts the HAPPY data provider and realizes, nope, the 0xEvilHacker address is blacklisted. So the entire order is cancelled and the hacker can no longer trade his funds. The theft is foiled. Oh no! Haha! Yeah, sucks to be the hacker. Every exchange connected to HAPPY receives this information almost instantly and can now block any further attempts by the hacker to exchange stolen funds. This substantially increases security for the entire DeFi industry. I don't think the DeFi space can continue to grow without projects like HAPPY making it safer to trade. The HAPPY token is the native token of the HAPPY protocol and is also an ERC20 token, meaning you can store your HAPPY tokens in any wallet that supports ERC20 tokens. Being a HAPPY holder also means being the whole DeFi industry security arbiters to circulize between data submitters and security oracles. It's really important. Every transaction to be submitted in the security oracle database will require HAPPY tokens that would be further sent for oracles to review their work. The data provider determines the final price according to the demand for the off-chain resource and similar information supply. For those of you who don't know what an oracle is, basically, it's just a server that monitors changes in information from the outside world, usually accessed by an API or application programming interface and informs the blockchain of those changes. When you're accessing your bank information on your phone, your phone is connected to the bank's API. Same thing, if you're constantly checking crypto prices like I am, you're accessing a crypto price API and getting data in real time. There are other competitors in the space too, but HAPPY seems to offer something special. From an investment point of view, HAPPY has a relatively low market cap and a very limited supply of tokens. As the token is integral to the product, token appreciation is inevitable should widespread adoption take place. Some say HAPPY is here to disrupt the whole DeFi space, but in a good way, of course. So definitely watch this project closely and don't miss out on this amazing opportunity. Digital security fact number one. DeFi hacks accounted for 76% of all major hacks in 2021. And it makes a lot of sense. I mean, after all, why steal user data when you can just steal user funds? When it comes to blockchain security, code is law. That's why making the code right is of utmost importance. So in blockchain, there are blockchain security companies that audit this code and some of the top companies include Hacken, Quantstomp, Treobits, OpenZeppelin, and CertiK. It is a lot easier to steal funds in DeFi, Banadis to steal funds in real life. If it was $600 million of funds in cash in real life, it would be literally six tons. So hackers will probably have to be planning out a getaway vehicle, how to drive that out, a big truck, and you know, probably how to smuggle it out of the country. Now it's time for me to wrap things up. Honestly, I think something like HAPPY cannot come at a faster pace. With the rapid development of DeFi and more and more money locked in DeFi ecosystems, there's more opportunity for hackers to kind of steal just a little bit of that. So this is why products like HAPPY can prevent the hacker from using those stolen funds and it can deter hackers from hacking in the first place. So if you guys are interested to learn a little bit more about HAPPY and the future, well, there's a lot of updates. I'll link them down below to the current HAPPY medium and their latest tweets about what's happening. If you guys like content like this, make sure you hit the like button down below and of course subscribe to this channel. Don't be shy. Also, check out Nathan and Jemmy's channel. They're in the links down below too. And I'll see you next video. VEFI industry Art in plain, in plain, in plain, in plain English. In what?