In light of the recent ByBit Hack claiming over $1.5 Billion ETH from the exchange, over $4 billion of outflow has followed this month due to understandable security concerns from users on the platform. (ByBit total inflow Stats)
This breach of security didn't just shake ByBit users or Ethereum holders, it brought devastation and ultimately awareness to the entire crypto community, prompting adjacent blockchain teams to analyze future or potential risks corresponding to signature model compromisation.
Can Solana Security be Better?
To understand blockchain security, you have to understand the signature models. While Ethereum and Solana both host multi-signature wallet models, the underlying difference is the architecture, implemented tools and technoligal variations.
Implemented tools eg. Solana features platforms like Squads and Ethereum has established multisig solutions like Safe (formerly Gnosis Safe)
Ethereum primarily relies on the Ethereum Virtual Machine (EVM) for smart contract execution. Multisig functionality is typically implemented through these smart contracts deployed on the EVM.
Solana utilizes a different architecture with its own runtime environment combining Proof of History (PoH) with Proof of Stake (PoS) and additionally Sealevel Virtual Machine (SVM). This leads to variation in how multisig logic is executed and optimized.
Some newer multisig implementations are using Multi Party Computation (MPC) which is a technology that can be used on both Ethereum and Solana. This technology changes how private keys are handled, which can produce different security and cost profiles.
With a currently fortified Solana multisig security model in place, preemptive measures are always the safest option when handling financial security but can it be better? Recent post by OtterSec founder, security research and software developer Robert Chen suggests possible scenarios using a threat model involving durable nonce transactions, however this would be difficult to orchestrate. Additionally, Solana Team got the message and reposted the blog.
(Direct link to Robert Chen blog)
Taking Action Behind Lines
While the current Solana signature model has unique properties regarding protocols, many more open source tools are at the request of developers to further mature the space and validate safe transaction hashes. The developer community has spoken with high regard to scalable and safe solutions. This can essentially be seen as a positive prospect for the future of potentially needed solutions. Solana has not only a strong but also a very resilient community foundation with an exponentially growing user base. White Hat developers and projects backed by renowned partners is the true diligence in taking action to fortify what has already been established.
Summary
While no blockchain is completely without risk, Solana has been leading the way as proven by the recent testament of record level market volumes derived from meme coins in the past few months. The network stability with minimal technological error and high transaction speed maintained at these peak moments has been very valuable insight specifically for Solana. I do believe this high ground of foundation in established solutions is a big green flag for investors and developers, regardless of recent disaster revolving around meme coins.
