Blockchain and crypto exchange platform, Binance Labs have partnered with data privacy software company, Oasis Labs to launch an alliance aimed at combatting crypto fraud and theft.
Called the Cryptosafe Alliance, the venture aims to establish a global ecosystem of collaborators especially software and cybersecurity companies to tackle the ever-rising problem of crypto scam, fraud and theft. Oasis Labs will serve as an inaugural member and primary infrastructure provider of the CryptoSafe Alliance. Other members will be admitted into the system.
With the growing popularity of blockchain technology and increasing adoption of cryptocurrency like Bitcoin, incidents of crypto scam and crypto theft has continued to rise.
Just last month, the world witnessed the biggest social media hack ever recorded when a group of crypto scammers hacked the Twitter accounts of popular persons including Bill Gates and Barrack Obama to perpetrate a carefully thought out cryptocurrency fraud.
According to reports, Crypto scammers made away with over $4 billion worth of Bitcoin in 2019 alone. As of July 2020, scammers have already stolen $24 dollars worth of cryptocurrency due to increasing online activity, especially during the lockdown when remote work became the new normal.
And online activity is ever-increasing which means crypto scams are set to increase. The newly launched CryptoSafe Alliance, if effective, would be w welcome development as it would increase public confidence in the security of cryptocurrencies.
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“The formation of the CryptoSafe Alliance is a representation of Binance’s commitment to building a more resilient crypto industry for everyone in the ecosystem. Together, we can make a concerted effort to safeguard the global cryptocurrency community through collaboration and open data sharing.”
Changpeng Zhao (CZ), Binance CEO
How CryptoSafe Alliance Works
The alliance basically aims to reinforce and strengthen the security and anti-fraud intelligence around the work. This it would achieve through a network comprising exchanges, blockchain protocols, cybersecurity experts and compliance firms from around the world.
There would be a decentralized system powered by the Oasis Network and the Oasis Labs privacy SDK, Parcel. Members of the Alliance will be able to share and access real-time intelligence and reports on hacks, scams and other malicious incidents privately through the system without having to share sensitive industry or user data with competitors.
The CryptoSafe platform will begin by supporting post-mortem analysis against the combined anti-fraud intelligence from the Alliance partners. The platform will expand to provide proactive real-time fraud analysis for Alliance members to fight cryptocurrency hacks, theft, and laundering, as well as improve upon the industry’s standard for defense against bad actors.
“Oasis is the perfect partner to help Binance execute such a groundbreaking initiative. With the increasing focus on security and confidentiality, the CryptoSafe Platform leverages the Oasis Network to empower exchanges and other key players in the ecosystem to share threat analysis and reports without compromising sensitive data.”
Dawn Song, CEO and Founder of Oasis Labs
According to Binance, the Alliance is founded with a mission to build an ecosystem of privacy-first applications and platforms. Therefore, Oasis Labs offers data privacy APIs for enterprises and developers to easily enable privacy and define secure data access policies. Thus, members of the Cryptosafe Alliance will be able to store and analyze sensitive data while Oasis remains oblivious to the interpretation of the data each exchange uploads.
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