Kraken, along with other key players in the industry, has taken a significant step towards enhancing security within the crypto sector by co-founding the Blockchain Security Standards Council (BSSC). The non-profit organization aims to establish uniform security standards across the crypto industry to address pressing security threats such as fraud, cyberattacks, and protocol exploitation.
The BSSC’s mission is to develop consensus-driven security benchmarks and a robust audit process by the end of 2024. These efforts are expected to strengthen the industry’s security framework and build trust in digital assets. By collaborating with regulators and policymakers, the council also aims to ensure the development of balanced and effective security standards to protect consumers and foster innovation within the blockchain ecosystem.
Kraken’s Chief Security Officer, Nick Percoco, highlighted the importance of voluntary security standards for the maturation of the crypto industry. He emphasized the need for collaborative efforts among industry players to enhance confidence in cryptoassets. Kraken’s involvement in the BSSC underscores its ongoing commitment to security, following its role in establishing the Crypto Information Sharing and Analysis Center (ISAC) to reduce cybersecurity risks across the sector.
The formation of the BSSC also addresses the blockchain trilemma by focusing on security standards to balance decentralization, security, and scalability. This approach aims to mitigate risks while supporting the growth and scalability of blockchain networks.
The establishment of the BSSC comes after Kraken’s recent dispute with blockchain security firm CertiK. In June, CertiK uncovered a critical vulnerability in Kraken’s system, leading to a major security challenge for the exchange. The dispute escalated when CertiK exploited the vulnerability to withdraw $3 million from Kraken’s accounts, prompting accusations of extortion from the exchange.
However, CertiK maintained that its actions were preventive and aimed at securing the platform. After both firms went public with their sides of the story, CertiK returned the funds to addresses it had on hand, resolving the dispute.
Overall, the collaboration between industry leaders to establish the BSSC demonstrates a proactive approach to enhancing security within the crypto sector and building trust in digital assets. By setting uniform security standards and engaging with regulators, the council aims to create a more secure and resilient blockchain ecosystem for the future.