Learn Lessons from Blockchain Security Incidents

Recently, BlockSec CEO Zhou Yajin was interviewed and shared his views and experiences on cryptocurrency security. He introduced BlockSec's three major business sectors: on-chain protocol security, asset security, and compliance regulation.

Zhou Yajin shared three safety tips for novice investors:

1. Properly store your private keys, you can use a hardware wallet or dedicated device for storage.
2. Stay vigilant when conducting on-chain transactions; there are no free lunches.
3. Understand the basics of cryptocurrency assets, especially the authorization mechanism.

He also described three impressive security incidents:

1. After the Duck-billed Platypus protocol was attacked, BlockSec used the vulnerabilities of the attacker to counteract and recover some funds.
2. ParaSpace was attacked, BlockSec intervened in time, saving $5 million in assets.
3. Bybit faced a $1.5 billion theft incident, exposing the risks of an overly long trust chain.

Zhou Yajin emphasized that when interacting with DeFi protocols, one should:

1. Conduct background research on the project parties.
2. Check if it has been audited by a well-known security company.
3. Use a progressive investment approach.
4. Use professional security monitoring tools.

He believes that DEX is relatively safe, mainly because the protocol is simple and there are mature examples. In contrast, complex protocols like lending carry higher risks.

Regarding the blockchain security industry, Zhou Yajin stated:

1. The current market size is approximately 3 billion USD, which is still relatively small compared to traditional cybersecurity.
2. The industry development has encountered bottlenecks, but the entry of traditional financial institutions brings new opportunities.
3. The moat of top security companies includes brand trust, innovative technology, and an understanding of compliance regulations.

Overall, with the compliance of the industry, the blockchain security industry still has great development potential.