BUSINESS

How The Number One Crypto Problem Could Be Solved

With the increasing popularity of cryptocurrencies, the number of attacks targeting their networks has grown exponentially. Cybercriminals are now turning their sights to web wallets, exchanges and other critical infrastructure to steal funds from unsuspecting investors. The amount of stolen crypto was 10 billion dollars and with banks entering the crypto world the appeal of the hackers is spurred on more and more.

However, the future is not completely dark because companies like Lossless try to provide more security for investors and institutions.

What is Lossless in simple words?

Lossless is a cyber security protocol in the decentralised finance area with scam detection solution. LSS is its native token which can be staked on the network or for making payments and receiving rewards. Rewards can be earned by successfully reporting a fraudulent transaction.

How does the fraud detection protocol process work?

Step 1: Freezing of the transaction after report

This is done with a smart contract that allows hack-spotting bots to freeze fraudulent transactions.

Step 2: Fraud analysis

The fraud analysis lasts 24 to 48 hours where the so-called “Decision-Making Body ” decides whether the transfer was made with a scam intent or not.

What are the parts of the” Decision-Making Body”?

  • The ERC20 Token Creator (Token owner): 1/3
  • Lossless Company expert team (Cybersecurity experts from Lossless): 1/3
  • Lossless Committee (a group of people from diverse sectors within the blockchain ecosystem) 1/3
    A report needs a majority of 2/3 of all votes to be verified as a hack

Step 3: Returning of stolen funds

The Decision-Making Body enacts a proposal for a transactional reversal, the code reverts stolen funds back to the original owner.

Step 4: Commission

The total commission is 7% and distributed to:
2% Finder
2% LSS token stake holders
2% Lossless Committee
1% Lossless company
Sources: Lossless blog and Lossless whitepaper

Other products:

Vault protection:

Whitelisting (allows project owners to mark certain addresses as beneficiaries while every other address would be denied any form of interaction, good against fraud suspicious addresses)

Withdrawal limiting (freezes transactions when they surpass a certain value of transferred tokens over a specified time, useful to identify suspicious activity)

Token Minter for free (Project owners can easily mint their own Lossless-protected tokens on Ethereum, Polygon and four other supported chains, includes burnable and mintable tokens)

Security Oracle

Identifies risky, suspicious wallet addresses which are potentially initiating a hack or exploit to prevent the attack which will become accessible for protocols that will activate our oracle for higher security.

Token Relaunch Toolkit

For tokens that are already established in the market but would like an easier relaunch process to apply the Lossless protocol to their token’s smart contract for more security.

Should I invest in the web 3 security company?

– Small market cap ($$14,688,018)
– Early investing stage, could be too risky
+ Only a few cybersecurity companies in Web3 and none with a high market cap
+ First crypto hack mitigation tool
+ Proven system successfully saved ($$25,661,986.3)
+ Huge security problems, $10 billion stolen last year, tendency increasing
+ Could increase crypto popularity for financial institutions, governments and sceptical crypto observers
+ Staking a token is necessary to use protocol feature
+ Supply 100.000.000 with 56% in circulation

Conclusion

Now the trust for small caps is limited as they have normally fewer financial reserves. In this case however I don’t see it as a problem as the web3 security space is not very stuffed with billion-dollar competitors that could take advantage of the current situation. This also means it’s a good time to penetrate this niche to get a big market share and with an increasing amount of funds stolen the demand for security will continue to rise.
In addition, I would love to see more security in the crypto space as it’s still the number one problem holding people and institutions back from being part of the future. From a technical perspective the mitigation tool is an interesting idea that can contribute to more web security. The project could also be interesting for investors as the security sector will play an important role and is continuously growing.

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