Ethereum Developers Introduce New Smart Contract Security Standard
Date: 2023-09-19 Author: Dima Zakharov Categories: BLOCKCHAIN, CRYPTO PAYMENTS
Enhancing Smart Contract Security with ERC-7512
The recently proposed ERC-7512 standard represents a collaborative effort by developers from prominent organizations such as Safe, Ackee Blockchain, OtterSec, ChainSecurity, OpenZeppelin, and Hats Finance. Their goal is to introduce a heightened level of security within the Ethereum ecosystem by implementing on-chain audits of smart contracts.
In-Depth Audit Analysis
ERC-7512's key feature is its ability to meticulously analyze the results of smart contract audits. Currently, audits are performed manually by teams, lacking authenticity verification within the network. If this standard is accepted and implemented, it could revolutionize the way audits are conducted, ensuring greater trust in the process.
Building an In-Network Reputation System
Beyond enhancing audit procedures, ERC-7512 has the potential to create an in-network reputation system for trusted auditors of decentralized applications. This innovation could further solidify the Ethereum community's commitment to maintaining a secure and trustworthy environment.
Addressing DeFi Sector Losses
The need for this new standard arose due to substantial losses incurred by the DeFi sector as a result of exploits. Experts estimate that the industry suffered losses totaling $655.6 million in the first half of 2023 due to hacks and fraudulent activities. ERC-7512's implementation seeks to mitigate such vulnerabilities.
Previous Security Standards
In July, a group of Ethereum community programmers proposed ERC-7265: Circuit Breaker, another standard designed to bolster the security of DeFi protocols. This solution allows developers to embed an automatic "breaker" into smart contracts, halting token movement when a certain threshold of asset outflow rate is reached.
In March, the Ethereum team activated ERC-4337, a standard that implements the concept of account abstraction, further advancing the security features of the Ethereum network.
As Ethereum continues to evolve, these new standards represent critical steps toward enhancing the security and trustworthiness of smart contracts and decentralized applications within the ecosystem.
