Community Engagement: A Key Driver in Web3 Security – An Interview with Hats Finance
Web3 security has evolved into a complex battle between exploiters and auditors. Oliver Hörr, the founder of Hats Finance, a community-focused onchain audit platform, shares his vision on how incentivizing community involvement could enhance Web3 security.
The State of Web3 Security
Oliver Hörr notes that Web3 security is maturing, with founders increasingly understanding the critical importance of security to their projects’ survival. In 2021, the lack of available audits led some projects to deploy unaudited code, resulting in significant negative outcomes. Now, there’s a growing recognition of the importance of security and an influx of talent in the audit space, partly due to decentralized security (DeSec) approaches that allow anyone to prove their expertise.
Integrating Security into Blockchain
Hats Finance integrates onchain security through bug bounties and audit competitions, with all results recorded onchain. The platform is part of an initiative to standardize security processes with EIP-7512, which will help users make informed decisions about their interactions with smart contracts.
Addressing Audit Inefficiencies
Hats Finance offers a decentralized approach to audits, allowing anyone worldwide to participate and only rewarding successful submissions. This model reduces overhead costs associated with traditional audit organizations, making audits more affordable. Auditors can focus solely on finding vulnerabilities, rather than administrative tasks, which Hörr believes will eventually lead to onchain audit DAOs replacing traditional audit companies.
Rewards-Only Payment Model
Hats Finance charges a fee only for successful submissions, meaning if no vulnerabilities are found, the audit is free for the customer. This model addresses the issue of paying for audits that provide no value and ensures that even top firms cannot guarantee the best results every time.
Permissionless Participation
Hats Finance allows for broad participation in audit competitions, helping to uncover new talent, particularly in regions like South America and India. This approach supports emerging security researchers who can build their reputations without the constraints of traditional audit firms.
Community Involvement
Community involvement is crucial in Web3 security. The community, often the most affected by security breaches, is typically excluded from security decisions. Hats Finance empowers the community to influence security measures, ensuring projects are more secure and allowing community members to benefit from the growth and potential of Web3 security.
Future Vision for Hats Finance
Hats Finance aims to address future security challenges in Web3, focusing on AI safety and onchain security for smart wallets. The platform’s decentralized infrastructure is seen as ideal for mitigating AI risks and addressing the UX bottlenecks in Web3. The immediate goal is to decentralize the Hats protocol, activating the community to shape its rules and economic mechanisms.
Hörr envisions a future where Web3 security is more transparent and community-driven, helping to overcome security concerns and supporting the mainstream adoption of Web3 technologies.
