Building a Defensive Formal Verification Platform to Protect Smart Contracts and Blockchains from AI-Driven Attacks

Paris, France
How Tokenization Makes Treasury Work 24/7 ? Imagine receiving $1 billion on a Friday afternoon. For most of us, that's fiction. For the treasury departments of global corporations, banks and financial institutions, it's business as usual. Today's financial system is remarkably efficient if you want to invest cash for months or years. But if you want to lend excess liquidity for just a few hours or a weekend, it becomes surprisingly inefficient. Treasurers often have to submit orders during a narrow morning window. Settlement follows business-day calendars. Miss the cut-off on Friday, and your cash may remain idle until Monday. Programmable money changes that. Whether implemented with deposit tokens, tokenised money market funds or other forms of tokenised cash, the principle is the same: cash becomes available to smart contracts that can allocate it continuously. This expands treasury in three dimensions. 1. More days Liquidity is no longer limited to five business days. It becomes productive seven days a week. 2. More hours Instead of a narrow morning dealing window, liquidity can be deployed 24 hours a day. 3. More time zones While your treasury team is asleep in New York or London, an institution in Singapore, Tokyo or Sydney can borrow that liquidity and return it before your business day even begins. Your money works while you sleep. Consider a company holding $1 billion in excess cash. Using an overnight rate close to today's SOFR of 3.5%, putting that liquidity to work for just one additional weekend generates roughly $200,000. Multiply that opportunity across weekends, public holidays, different currencies and global treasury operations, and you begin to understand why every major financial institution is investing in tokenised finance. This isn't about crypto. It's about turning money into programmable infrastructure. Smart contracts automate financial agreements. Blockchains synchronise transactions between participants. Tokenised cash allows liquidity to circulate continuously. For the first time, financial markets are no longer constrained by business days, office hours or geography. The computerisation of markets in the 1980s digitised finance. Tokenisation makes finance programmable. It's time to stop talking about crypto and memecoins and start paying attention to what really matters: the transformation of the global financial system through smart contracts and blockchain.
Made with AI
1
5
539
❤️ formal verification of everything for security ❤️
Two weeks ago, Ethereum researchers met in Berlin to continue charting the protocol's long-term trajectory, following along discussions with client teams in Svalbard in April. The updated strawmap is at strawmap.org, and I attached a picture of it to this post. My own high-level takeaways: * "Lean Ethereum" is not a single one-shot upgrade, it is a collection of improvements that will come online to the Ethereum network over the course of three or four years. But make no mistake, this IS the third major iteration of Ethereum in the same way that the Merge was the second. Almost every major piece of the protocol will be replaced: - Verification through recursive STARKs, rather than direct re-execution. Recursive STARKs become an enshrined first-class core component of the protocol - Replacing everything quantum-vulnerable with quantum-safe alternatives - Consensus: decoupled available chain and finality, one or two-round finality. Theoretically optimal security properties, simpler than today, and faster than today - Multidimensional gas - State: not just tree structure, but what *types* of state are available - Changes to client architecture ... At the same time, simplification, cleanup and future-proofing. And this will all be done in a way that minimizes disruption to existing application. We've done this before (the Merge), we can do it again. * H-star (aka Hegota) is probably Ethereum's last thematically "pre-Lean" fork. Starting from I-star, most of everything we do will have a very strong "Lean" feel to it in one way or another. * Privacy is no longer an afterthought, it is a first class goal. When designing Frames, the mempool, additions to the state tree, we explicitly ask the question "okay, how do quantum-safe, intermediary-free privacy protocol transactions go through this, and what is the overhead?" * Formal verification of everything for security. * FV also makes us much more comfortable with canonicalization (having pieces of the protocol that are directly defined as a piece of bytecode expressed in some language). evm-asm is being written in part to become a canonical proof system for the EVM. * Quantum safety has shifted up a LOT in priority. This adds a lot of work (eg. finalizing a quantum-safe blobs design has become urgent; this work has already been ongoing for months) * Probably the single most disruptive part of the plan is the changes to state. There is growing consensus around leaving present-day-style "dynamic state" mostly unchanged, but scaling it only a medium amount, and adding new types of state that are more scalability-friendly (eg. no need for builders to sync/store all of it) but more restrictive, and that will scale a large amount. eg. possible Ethereum in 2030: 2 TB of present-day-style (dynamic) state, and 100 TB of new-style (scalable but restrictive) state This "new-style" state would work very well for ERC20s, NFTs, many defi use cases, but not eg. highly "central" objects like Uniswap contracts, or onchain order books, or other complex things (which are crucial for Ethereum but which only take up a small percentage of state) Hence, it will not be *necessary* to rewrite any apps, but it will be *very cost-effective* to eg. rewrite an ERC20 token into a newer design that uses a new type of UTXO storage that is currently being explored, so that it will have >10x lower txfees. Design of these new state types (current ideas: keyed nonces, ring buffers, UTXOs, statically accessible state, temp state) is an area where we will need a lot of feedback from application developers (incl. privacy-friendly application developers) and probably several rounds of rethinking and iteration. * In the context of a much larger total state size, we need to figure out the incentive issues around who stores this state and what motivates them to. Even saying "each node stores 1%" is not good enough - why do they store that 1% and why are they willing to serve it? This is being elevated as a first-class research area. * Ethereum will need to have a "VM" other than EVM in one form or another - at the very least, we need something like leanISA for recursive STARKs - and the gains are large in exposing it to users so that we support programmable privacy and better scalability. Right now, the most likely contenders are leanISA and RISC-V. My own ideal is that in this world, we adjust the protocol so that the EVM becomes a high-level-language compiler-level feature, and the protocol only "sees" RISC-V / leanISA directly. But this is still far away. * Gas limit increases, blob increases and slot time decreases will happen many times over the next ~5 years. We expect a large gas limit increase with Glasterdam. Each step of increased scale or decreased slot time is a matter of getting to the point where it is safe to do it, which comes from a combination of client optimization and protocol changes. Ethereum is CROPS. Ethereum is scaling. Ethereum is reinventing itself. Onward.
5
297
Patrick Azzopardi retweeted
AI gives attackers the edge. One flaw is all they need. Protofire × @DowsersFinance now give the Solhint community free smart contract security analysis. 500+ checks in seconds, the first step toward formal verification. Find the flaw before hackers do 👇
1
2
6
1,331
Patrick Azzopardi retweeted
Allez Paris! 🔴🔵🤙🏾
1,483
21,618
253,048
3,315,096
Patrick Azzopardi retweeted
In 1876, Western Union said "the telephone has too many shortcomings to be seriously considered as a means of communication." It later revolutionized global communication. 📢 You can listen to the noise… or trust Dowsers. #TechHistory #Innovation #SmartContracts
2
5
98
Patrick Azzopardi retweeted
💡 Did you know ? Smart contract vulnerabilities led to $3.8B in losses in 2023. That’s nearly $10M lost daily ! 🚨 Investing in robust audits is a fraction of this cost. Protect your funds. 🛡️💰 #BlockchainSecurity #SmartContractAudit #Web3Finance
6
9
124
Patrick Azzopardi retweeted
🧐In your opinion, what’s the BIGGEST flaw causing smart contracts to lose millions of dollars ⁉️ #Web3 #Security #Blockchain #SmartContracts #Crypto #DeFi #SmartContractSecurity
100% Code bugs (hidden risks)
0% Reentrancy attacks
0% Unreliable oracles
0% Other (explain below)
6 votes • Final results
4
7
110
Patrick Azzopardi retweeted
🔍 Find out how smart contracts are revolutionizing security and boosting trust in the Web3 ecosystem. 📖 Read the article here : medium.com/@developsmartcont… #SmartContracts #BlockchainSecurity #Web3Innovation #CryptoSecurity
6
9
70
Patrick Azzopardi retweeted
📊How many millions of dollars do people lose every year because of smart contract flaws, you ask? Nearing $45 million losses during smart contract breaches in Q1 2024. Averaging $2.8 million per flaw in 16 major incidents combined. #DeFi #BlockchainTechnology #SmartContracts
7
11
332