- Blockchain security platform Ironblocks has a new tool for DeFi developers who want to add security to their smart contracts.
- Ironblocks At launch, the service has three big-ticket users: the zkEVM chain Linea, AltLayer and the layer-2 network Kinto – with more on the way.
Ironblocks a cottage industry of crypto security firms police the aftermath of protocol hacks and heists. Now one of them is out with a “firewall” aimed at stopping those thefts beforehand.
Blockchain security platform Ironblocks’ new tool is a free service for developers who want to add security to their smart contracts, CEO Or Dadosh told CoinDesk. Called Firewall, it allows them to plug-and-play various security “policies” to monitor transactions on their decentralized finance protocols for suspicious attempts.
Ironblocks The open-source toolkit could offer at least some salve to the ever-present threat of hacks in DeFi. Dadosh estimated any given week brings with it as many as 10 different hacks of protocols offering lending, trading, staking or other financial services to crypto holders. Those heists add up: PeckShield estimated $60 million in losses in April.
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Ironblocks a Firewall sits inside the smart contracts processing protocols’ transactions, Dadosh said. Developers get their pick of a handful of policies that scour the flow for sketchy patterns and other tells that a hack is in progress.
“It doesn’t stop or pause the application, it just stops the specific transaction that may attack the application, just like in web2 firewalls,” Dadosh said.
At launch, the service has three big-ticket users: the zkEVM chain Linea, AltLayer and the layer-2 network Kinto. Dadosh said more are on the way.
Because the service is free to use, it is not meant to be a direct moneymaker for Ironblocks, an Israeli startup that last raised $7 million in venture funding in early 2023. Instead, it’s a feeder for the company’s other crypto cyber defense products including the upcoming “Venn Security Network,” according to its website. Dadosh was hesitant to discuss what the network would look like.
But the Firewall toolkit could offer a step forward for security in an ecosystem where code immutability makes incremental updates – a bug here, a potential exploit there – hard to patch on the go. Dadosh said developers can add more policies to their code after the fact, and remove them, too.
Ironblocks How the developers make these changes is really up to them. Perhaps they could turn the decisions over to their projects’ token-holding governance communities, to a wallet controlled by multiple parties (a multisig) or to the DAO.
Ironblocks The point is to stop the hacks before they happen.
“Once you get hacked, in most of the cases, you’re done,” Dadosh said. “And this is what we’re trying to prevent.”
That’s right! Ironblocks recently launched a new tool called “Firewall” specifically designed to enhance security for DeFi protocols. It functions like a firewall, but for blockchain applications.
Here’s a quick rundown of Ironblocks’ Firewall:
- Free and Open-Source: Ironblocks Developers can integrate it into their DeFi protocols for free, with the code readily available for scrutiny and customization.
- Focuses on Transaction Monitoring: It keeps an eye on transactions occurring within the DeFi protocol and can flag suspicious activity.
- Modular Security Policies: DeFi developers can choose from a variety of pre-built security policies to target specific concerns, like only allowing transactions from user-controlled wallets (EOA) or restricting certain methods from being called within the smart contract.
- Real-Time On-Chain Protection: The firewall operates directly on the blockchain, enabling immediate intervention if a malicious transaction is detected.
- Minimizes Disruption: Ironblocks claims that their Firewall can block malicious activity without impacting the overall functionality of the DeFi protocol, allowing regular operations to continue.
Overall, Ironblocks’ Firewall seems like a promising tool to improve DeFi security. It remains to be seen how widely adopted it will be, but it does offer a new approach to mitigating the ongoing threat of hacks within the DeFi space.
Ironblocks a firewall is a network security system that monitors and controls incoming and outgoing network traffic based on predetermined security rules. It acts as a barrier between a trusted network, like your home network or a company’s internal network, and an untrusted network, typically the internet. Firewalls essentially decide whether to allow or block specific data packets based on their characteristics.
Here’s a breakdown of key aspects of firewalls:
Types of Firewalls:
- Packet Filtering Firewalls: These are the most basic firewalls that examine individual data packets and allow or block them based on source and destination IP addresses, port numbers, and protocols.
- Stateful Firewalls: In addition to packet filtering, stateful firewalls track the connection state between devices. This allows them to make more informed decisions about allowing traffic that is part of an established communication session.
- Application-Level Firewalls (ALFs): ALFs inspect data packets at a deeper level, examining the application data itself to identify and block malicious content or unauthorized applications.
- Next-Generation Firewalls (NGFWs): These advanced firewalls combine features of traditional firewalls with additional functionalities like intrusion detection and prevention, deep packet inspection, and application control.
Benefits of Firewalls:
- Enhanced Security: Firewalls act as a first line of defense, filtering out potentially malicious traffic like malware, viruses, and unauthorized access attempts.
- Network Segmentation: Firewalls can be used to segment a network into different zones, limiting access between them and improving overall security.
- Improved Control: Firewalls allow administrators to define access control policies, restricting unauthorized traffic flows and protecting sensitive data.
- Reduced Risk: By filtering out malicious traffic, firewalls can help reduce the risk of cyberattacks, data breaches, and system disruptions.
Things to Consider:
- Firewall Configuration: Proper configuration of a firewall is crucial for its effectiveness. Defining clear and appropriate rules is essential for balancing security with allowing legitimate traffic.
- Firewall Type and Features: The type of firewall you choose depends on your specific needs. Consider factors like network size, security requirements, and budget when making this decision.
- Limitations: Firewalls are not foolproof. They cannot always detect and block sophisticated attacks. It’s important to use firewalls in conjunction with other security measures like anti-virus software and user education.
Ironblocks Overall, firewalls are a fundamental component of network security. They play a vital role in protecting your devices, data, and network from unauthorized access and cyber threats.
You’re absolutely right! Firewalls are a critical first line of defense in protecting networks from unauthorized access and cyber threats. Here’s a deeper dive into how they achieve this:
Filtering Mechanisms:
- Packet Inspection: Firewalls examine individual data packets traveling across the network. They analyze characteristics like source and destination IP addresses, port numbers, and protocols defined in the security rules.
- Rule-Based Decisions: Based on the packet inspection, the firewall decides whether to allow the traffic to pass through or block it. The rules are configured by network administrators to define permitted communication patterns.
- Blocking Malicious Traffic: Firewalls can block various types of malicious traffic, including:
- Denial-of-Service (DoS) attacks: These attacks aim to overwhelm a network with traffic, making it unavailable to legitimate users. Firewalls can identify and block suspicious traffic patterns associated with DoS attacks.
- Malware and Viruses: Malicious software can exploit vulnerabilities in systems. Firewalls can filter out traffic known to be associated with malware distribution.
- Unauthorized Access Attempts: Hackers might try to gain access to a network through unauthorized login attempts. Firewalls can block traffic originating from suspicious sources or attempting to access unauthorized ports.
Additional Security Features:
- Network Segmentation: Firewalls can be used to segment a network into different zones with varying security levels. This limits access between zones, potentially containing a security breach within a specific segment and preventing it from spreading to the entire network.
- Application Control: Some firewalls offer application control features. This allows administrators to define which applications are allowed to communicate on the network, potentially restricting unauthorized or high-risk applications.
- Deep Packet Inspection (DPI): Advanced firewalls (NGFWs) can perform DPI. This involves inspecting the data payload within packets, allowing them to identify and block malicious content or unauthorized applications trying to bypass security measures.
Limitations to Consider:
- Evolving Threats: Cybercriminals constantly develop new and sophisticated attack methods. While firewalls are effective, they might not always be able to detect and block the latest threats.
- Human Error: Accidental misconfigurations or a lack of awareness about security best practices can render a firewall ineffective.
- Internal Threats: Firewalls primarily focus on external threats. Malicious insiders or compromised devices within the network can still pose a security risk.
Beyond Firewalls:
For comprehensive network security, firewalls should be used alongside other security measures:
- Anti-Virus and Anti-Malware Software: These programs scan devices for malicious software and prevent them from infecting the system.
- Intrusion Detection and Prevention Systems (IDS/IPS): These systems monitor network traffic and system activity for suspicious behavior, potentially detecting and stopping attacks in real-time.
- User Education: Educating users about cybersecurity best practices like strong passwords, identifying phishing attempts, and avoiding suspicious links can significantly reduce the risk of human error leading to security breaches.
In the context of computers and networks, a protocol refers to a set of rules or standards that govern how data is formatted, transmitted, and received between electronic devices. These protocols establish a common language for communication, ensuring devices from different manufacturers and running various software can understand and interact with each other.
Here’s a breakdown of key points about protocols:
Types of Protocols:
- Network Protocols: These protocols define how data is transmitted across networks. Examples include:
- TCP/IP (Transmission Control Protocol/Internet Protocol): The foundation of the internet, TCP/IP breaks down data into packets, ensures reliable delivery, and routes them across networks.
- UDP (User Datagram Protocol): UDP prioritizes speed over reliability, making it suitable for real-time applications like video streaming.
- HTTP (Hypertext Transfer Protocol): The protocol used for communication between web servers and browsers, enabling us to access websites.
- Communication Protocols: These protocols define how devices communicate with each other. Examples include:
- USB (Universal Serial Bus): A common protocol for connecting peripherals like keyboards, mice, and external storage devices to computers.
- Bluetooth: A wireless protocol for short-range data exchange between devices like smartphones, headphones, and speakers.
- Wi-Fi: A wireless networking protocol enabling devices to connect to the internet or a local network.
Importance of Protocols:
- Interoperability: Protocols ensure different devices and software can communicate and exchange information seamlessly.
- Efficiency: Protocols define efficient data formatting and transmission methods, optimizing network performance.
- Reliability: Protocols like TCP/IP incorporate error checking and retransmission mechanisms to ensure data integrity during transmission.
- Security: Some protocols include security features like encryption to protect data confidentiality during communication.
Examples of Protocol Usage:
- When you browse the web, the HTTP protocol dictates how your browser communicates with a web server to request and display web pages.
- When you print a document, the printer communication protocol ensures your computer transmits the document data correctly to the printer for physical output.
- When you connect your smartphone to a wireless network, the Wi-Fi protocol establishes a connection and enables data exchange between your device and the network.
Overall, protocols are the foundation of communication in the digital world. They ensure devices can exchange information seamlessly, fostering data exchange, network functionality, and our overall digital experience.
