In 2021, the DeFi movement is expanding rapidly and in all directions. Every month, new projects appear and provide new and exciting financial instruments. Meanwhile, the total value locked (TVL) in decentralized protocols has increased by $80 billion in only one year.
While the DeFi revolution offers promising financial opportunities, it also comes with considerable dangers. Both the DeFi projects and their users are always at a high risk of illicit attacks. After all, decentralized finance doesn’t only attract innovation and capital. It also appeals to fraud, money laundering, and cybercrimes.
In this bustling environment, the need for optimal safety is more imperative than ever. And, the solution may come from Solidproof, an up-and-coming audit company from Germany. With new and innovative security solutions, this platform aims to make the crypto space safer for everyone.
The Solidproof project spurred from the idea that everyone should be able to use DeFi protocols safely. That includes not only investors but project developers, too. The latter always see their work cut off by hackers and cyber attacks. For instance, from January to July of 2021, hackers have stolen more than $474 million from DeFi platforms alone.
To reduce the risk of digital fraud and qualm everyone’s worries, Solidproof proposes security solutions, such as:
- Manual and automatic audits
- High KYC standards
- DocuSign implementation
- A high level of privacy through safe data storage.
Solidproof uses top blockchain experts to implement these services for DeFi projects of all kinds. Through KYC and auditing, both DeFi platforms and their users can interact in safe and legal surroundings.
Solidproof Puts Privacy First
Blockchain protocols that choose Solidproof services can count on the security of the data they provide. Because it operates from Germany, the company is subject to EU General Data Protection Regulation (EU GDPR). This law prohibits any company from publishing any data regarding their customers and users.
To make data storage even more secure, Solidproof keeps it on a separate server. Access to it is subject to complex encryption mechanisms. Above all, only the Solidproof.io Company can enter it.
Another powerful security feature comes in the form of DocuSign fields. Solidproof enables its users to create and execute documents in a safe environment. Once the document is complete, the company stores it securely for easy retrieval.
Solidproof KYC and Audit Services
Two of the best Solidproof security solutions are KYC and auditing. Through them, the company seeks to reduce the risk of DeFi protocols functioning on faulty source codes. This way, they should reduce the risk of hacking and fraud.
Know Your Customer (KYC) is a procedure that enables blockchain projects to understand better their users. Only high KYC standards can help protect a protocol against money laundering, financial fraud, and terrorist financing.
Solidproof’s KYC starts by establishing a customer’s identity. Next, it tries to understand the nature of the customer’s activities. This way, it can certify that the source of funds is legitimate. Lastly, it tries to confirm that the client does not pose any potential money laundering risks.
Hackers look to exploit smart contract bugs in DeFi protocols. That’s why Solidproof urges all decentralized finance projects to undergo auditing.
The German-based company performs manual audits to reduce the risk of faulty contracts. However, in September, the company will release an Auto Audit Tool. Through it, the security and efficiency of Solidproof audits should increase.
With the Audit Auto Tool, developers can quickly submit their projects for auditing. Also, they can ask for an additional manual audit. This in-depth testing process should reveal if a project has any potential vulnerability.
A Safer Future for DeFi
Solidproof has been around for less than a year. Still, it offers some of the best security solutions for blockchain projects and DeFi protocols. With premium KYC standards and efficient auditing tools, the company should help increase the credibility and transparency of the crypto space.
While still young, Solidproof has already audited up-and-coming projects, such as Jaguar Swap, Doge DNA, and Hive Protocol, among others.
As a Holding and Gmbh company, Solidproof.io is occupying one of the highest business levels in Germany. This status helped it strike auspicious partnerships with other successful blockchain entities, such as Unicrypt, Etherlite, and Pathfund.
Today, Solidproof is spearheading a new generation of audit companies striving to make DeFi safer for all participants.