Zengo Wallet’s Unconventional Bug Bounty Approach
The developer of Zengo Wallet is taking a bold step in the realm of cryptocurrency security. In an innovative twist to traditional bug bounty programs, Zengo Wallet is not just offering rewards for discovering vulnerabilities but is actively daring hackers to breach their wallet. The company is setting aside a substantial bounty of 10 Bitcoins, valued at over $430,000, to anyone who can successfully hack into a developer-controlled account.
The Staggered Release of Bounty and Security Factors
This unique bounty will span 15 days, from January 9 to 24. The challenge kicks off with the revelation of the wallet’s address, initially loaded with 1 BTC. As the days progress, Zengo Wallet will incrementally increase the bounty and disclose crucial security factors. By January 21, the total bounty will reach 10 BTC, accompanied by the revelation of two out of three security factors used in safeguarding the account.
Advanced Security Features of Zengo Wallet
Zengo Wallet prides itself on a “no seed phrase vulnerability” design, where users aren’t burdened with memorizing seed words. The wallet employs a multi-party computation (MPC) network for transaction signing. This innovative approach splits the private key into two separate “secret shares,” enhancing security. Users can recover their share through a robust three-factor authentication process, including a face scan, adding an extra layer of security.
Emergency Backup and Recovery Provisions
In addition to its robust security features, Zengo Wallet has also implemented a backup method for the MPC network’s share. A master decryption key has been entrusted to a third-party law firm, ready to be released under specific emergency conditions. This contingency plan ensures that users can reconstruct the MPC network’s share and regain access to their accounts, even in the event of network failures.
Fostering Crypto Security Conversations
Elad Bleistein, Zengo’s chief marketing officer, views this on-chain bounty as a catalyst for discussions about MPC technology in the crypto sphere. This challenge is expected to shed light on the security benefits of MPC wallets, distinguishing them from traditional hardware wallet solutions. The Zengo Wallet Challenge aims to engage and educate the crypto community about advanced security technologies in the rapidly evolving world of cryptocurrencies.
Rising Concerns Over Wallet Security
The initiative by Zengo Wallet comes at a time when security in the crypto space is of paramount importance. Recent breaches, such as the Atomic Wallet incident and vulnerabilities in the Libbitcoin Explorer wallet library, have led to significant financial losses. These events underscore the critical need for continuous improvement and innovation in cryptocurrency wallet security. Zengo’s challenge marks a significant step towards fostering a safer and more secure environment for crypto users worldwide.