Blockchain security firm Quantstamp open sources its bounty protocol

Quantstamp bounty

Quantstamp, a blockchain security company developing automated security tools such as the Quantstamp Security Network, has announced it is open-sourcing the code for its bounty protocol.

A bounty protocol is a marketplace for developers to identify bugs in smart contracts that automation cannot detect. The bounty protocol has the potential to leverage software engineering talent from around the world to add an essential layer of infrastructure for blockchain security.

“By open-sourcing our code, we anticipate that Quantstamp Security Network users will benefit in two ways: Enhanced security and code quality: We anticipate the quality and security of the network to increase because engineers from the open source community have the option to suggest edits to the code. Transparency: Users will be able to independently verify that our network operates as we claim it does.”
– The Quantstamp Team

Why It’s Needed

Over 250 million USD has been lost or stolen due to bugs in smart contract code. In order to scale the security of smart contract blockchains using automation, the Quantstamp team created the Quantstamp Security Network. Although the Quantstamp Security Network detects vulnerabilities such as the re-entrancy bug that led to the DAO hack in 2016, there are certain bugs that currently only human auditors can detect.

The bounty protocol supplements Quantstamp’s automation by allowing human developers from around the world to report more nuanced vulnerabilities and check for bugs against specifications.

The Quantstamp bounty protocol has 3 functions: bounty providers, bug hunters, and judges

How It Works

Commit-Reveal Schemes

The bounty protocol uses two commit-reveal schemes in order to prevent judges and bug hunters from gaming the system.

Bug hunters submit reported vulnerabilities using a commit-reveal scheme in order to prevent front running. Without a commit-reveal process, a malicious actor can wait until an honest bug hunter submits a report on the blockchain. While that transaction is pending, the malicious actor can submit that exact answer but with a higher gas fee. If the transaction is processed first, the malicious actor succeeds.

Judges only receive a reward if they vote with the majority. In order to prevent early votes from biasing the votes of judges who vote later in the process, judges first submit a hash of their vote. After this period is over, judges submit a second transaction with their revealed vote.

Check out the Quantstamp GitHub repository for more information.

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