Keeping pace with the rapidly developing decentralized finance niche within the crypto industry, major crypto exchange Binance has called on blockchain auditing company CertiK to beef up its platform's security.
"The rapid innovation and experimentation of DeFi is what makes it so great, but speed should not compromise security," CertiK's chief operating officer, Daryl Hok, told Cointelegraph.
"We're providing a way for early adopters to continue to reap the benefits without having to be the guinea pigs bearing the brunt of the risk. As security experts in the field, we're in a unique position to extend the security promise to include an insurance-like reimbursement program to protect users of smart contracts."
Using its own blockchain, known as Binance Smart Chain, or BSC, Binance plans to build a new interoperability protocol in tandem with CertiK's blockchain, as per a Sept. 22 statement provided to Cointelegraph. The move aims to add safeguards to DeFi — a burgeoning niche of the crypto space that resembles the Wild West in opportunity, sentiment and regulatory vacuum.
DeFi has also suffered scaling difficulties, which Binance addressed with the unveiling of Binance Smart Chain. CertiK "will provide BSC with best-in-class cybersecurity services such as customized security audits and penetration testing, as well as decentralized security products such as CertiK Security Oracle scores and CertiKShield reimbursement pools," the statement said.
DeFi has grown at a breakneck pace, drawing a mass amount of speculatory money in the process. This has resulted in flying prices and subsequent crashes for numerous projects. The sector has also hosted its fair share of suspicious and nefarious activity, proving the need for security and safeguards.