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Comprehensive security — the only way to succeed in burgeoning GameFi industry
Comprehensive security — the only way to succeed in burgeoning GameFi industry
19 Oct
Gamefi

Blockchain — a promising technology that can be applied to many spheres
of life, replacing entire industries and companies with a single smart contract. But why, despite the fact that blockchain technology has been known for about 15 years, and smart contracts in their current understanding were designed already 7 years ago, there is no full adoption and widespread use of technology in most of our life?

The core problem — heists and hacks. It leads to restraining the growth of the entire blockchain industry. And the current solution — blockchain and smart contracts’ code audit, which contains code review and testing — can’t completely solve this problem. We provide another solution — formal verification (FV), as most accessible and effective.

Why?
  1. In the blockchain industry, there is a gradual adoption of technology at many levels of decision-making:
  2. Blockchains invest in FV to make their virtual machines formally verified to let their developers run smart contracts on correct platforms — Tezos, Elrond.
  3. Some auditors try to conduct FV manually, as the most secure way to create trustful smart contracts.
  4. Pruvendo’s FV approach to Solidity smart contracts security is a scalable product, not only a service. Its application for the entire blockchain industry will not require the involvement of tens of thousands of formal verification engineers (after all, such a number does not exist) — unlike the traditional audit of smart contracts, which requires huge human resources of auditors.

One of the fastest growing and promising industries of web 3 is GameFi. Even in crypto-winter in 2022, GameFi projects lead in the amount of IDOs and fundraising.
The emergence of Play2learn games has had a strong impact on the online gaming industry. The new model of the game, which occurred due to the development of blockchain technology, quickly became one of the most popular trends in the industry. More and more web2 entertainment companies are thinking about the implementation of GameFi technologies into their monetization systems, so they need smart contracts.

The main problem of GameFi is the same as that of any other blockchain project — security. However, due to the particularities of the business, the security requirements on the part of end users of smart contracts in GameFi are much higher than in other blockchain projects. And it’s not just about thefts of hundreds of millions of dollars (Axie Infinity — $615M hack in 2022), but also about signs specific only to the gaming industry:
  1. Honesty and uniformity of the gameplay for all players — in case of bugs, some players may get an unfair advantage (cheating), in GameFi this is compounded by linking real assets to game progress, which always finds an extremely negative response in the project community.
  2. The absence of chance to lose the result of the game for any of its participants, because the energy, time and money have been invested to obtain the desired achievements, their loss will cause a storm of negativity in the community and may even provoke an outflow of players.
  3. And the most important part of the GameFi industry — the players themselves. They
  4. are not only fans of online games, but also blockchain enthusiasts, along with crypto traders, making up the bulk of the wide blockchain community. Their experience is reflected in the entire community, and most importantly affects the speed of adoption of blockchain technologies by society.

The main pain of any GameFi project is that any mistake, vulnerability, or bug, thanks to a huge active community, can lead to an outflow of players, as in usual online games. However, due to the unique feature of GameFi — the presence of a token traded on the exchange and the possibility of withdrawing invested funds — a rapid outflow of funds from the project provokes a collapse of the token price on the exchange — and at the same time the capitalization of the project.

So, even one exploit can lead to an instant bankruptcy to the entire project and the loss of all investments.

How to protect the GameFi project from cyber threats?
  1. Take as a project basis formally verified, secure by design smart contracts, which grant trustworthiness, speed and uninterrupted operation of the highload system.
  2. Secure the game financial smart contracts to protect payments and ingame money transaction, defending players from any asset security exploit.
  3. Use trustful blockchain protocol with a strong consensus mechanism, multi-signature transactions, etc.
  4. Apply the on-chain monitoring of smart contracts to track work of running smart contracts, collect all the suspicious activity data and also get the alarm in case of hacking.
  5. If there are any supported wallets and dApps, they also should be formally verified, to prevent bypassing the security systems.

The core idea — comprehensive approach. Once created, a formally verified system provides absolute security and due to heritability, the properties have not to be reverified when embedding the proven subsystem into a bigger one.

Contact us if you are going to build trustwortful, secure blockchain infrastructure for your GameFi project and read about the FV approach for smart contracts security.

Blockchain — a promising technology that can be applied to many spheres
of life, replacing entire industries and companies with a single smart contract. But why, despite the fact that blockchain technology has been known for about 15 years, and smart contracts in their current understanding were designed already 7 years ago, there is no full adoption and widespread use of technology in most of our life?

The core problem — heists and hacks. It leads to restraining the growth of the entire blockchain industry. And the current solution — blockchain and smart contracts’ code audit, which contains code review and testing — can’t completely solve this problem. We provide another solution — formal verification (FV), as most accessible and effective.

Why?
  1. In the blockchain industry, there is a gradual adoption of technology at many levels of decision-making:
  2. Blockchains invest in FV to make their virtual machines formally verified to let their developers run smart contracts on correct platforms — Tezos, Elrond.
  3. Some auditors try to conduct FV manually, as the most secure way to create trustful smart contracts.
  4. Pruvendo’s FV approach to Solidity smart contracts security is a scalable product, not only a service. Its application for the entire blockchain industry will not require the involvement of tens of thousands of formal verification engineers (after all, such a number does not exist) — unlike the traditional audit of smart contracts, which requires huge human resources of auditors.

One of the fastest growing and promising industries of web 3 is GameFi. Even in crypto-winter in 2022, GameFi projects lead in the amount of IDOs and fundraising.
The emergence of Play2learn games has had a strong impact on the online gaming industry. The new model of the game, which occurred due to the development of blockchain technology, quickly became one of the most popular trends in the industry. More and more web2 entertainment companies are thinking about the implementation of GameFi technologies into their monetization systems, so they need smart contracts.

The main problem of GameFi is the same as that of any other blockchain project — security. However, due to the particularities of the business, the security requirements on the part of end users of smart contracts in GameFi are much higher than in other blockchain projects. And it’s not just about thefts of hundreds of millions of dollars (Axie Infinity — $615M hack in 2022), but also about signs specific only to the gaming industry:
  1. Honesty and uniformity of the gameplay for all players — in case of bugs, some players may get an unfair advantage (cheating), in GameFi this is compounded by linking real assets to game progress, which always finds an extremely negative response in the project community.
  2. The absence of chance to lose the result of the game for any of its participants, because the energy, time and money have been invested to obtain the desired achievements, their loss will cause a storm of negativity in the community and may even provoke an outflow of players.
  3. And the most important part of the GameFi industry — the players themselves. They
  4. are not only fans of online games, but also blockchain enthusiasts, along with crypto traders, making up the bulk of the wide blockchain community. Their experience is reflected in the entire community, and most importantly affects the speed of adoption of blockchain technologies by society.

The main pain of any GameFi project is that any mistake, vulnerability, or bug, thanks to a huge active community, can lead to an outflow of players, as in usual online games. However, due to the unique feature of GameFi — the presence of a token traded on the exchange and the possibility of withdrawing invested funds — a rapid outflow of funds from the project provokes a collapse of the token price on the exchange — and at the same time the capitalization of the project.

So, even one exploit can lead to an instant bankruptcy to the entire project and the loss of all investments.

How to protect the GameFi project from cyber threats?
  1. Take as a project basis formally verified, secure by design smart contracts, which grant trustworthiness, speed and uninterrupted operation of the highload system.
  2. Secure the game financial smart contracts to protect payments and ingame money transaction, defending players from any asset security exploit.
  3. Use trustful blockchain protocol with a strong consensus mechanism, multi-signature transactions, etc.
  4. Apply the on-chain monitoring of smart contracts to track work of running smart contracts, collect all the suspicious activity data and also get the alarm in case of hacking.
  5. If there are any supported wallets and dApps, they also should be formally verified, to prevent bypassing the security systems.

The core idea — comprehensive approach. Once created, a formally verified system provides absolute security and due to heritability, the properties have not to be reverified when embedding the proven subsystem into a bigger one.

Contact us if you are going to build trustwortful, secure blockchain infrastructure for your GameFi project and read about the FV approach for smart contracts security.

Inquire us for the details and we’ll make it worth your time
Interested in unprecedented security of your smart contracts?