Forta, a web3 security firm backed by a16z crypto, Coinbase Ventures and other investors, has launched Firewall, a new product to help detect and prevent smart contract exploits.
"The same way a web2 application firewall screens and blocks malicious Internet traffic, Forta Firewall does the same for onchain transactions," Forta said Tuesday. "Firewall integrates into the transaction flow and blocks malicious transactions before they are included in a block."
Crypto losses from exploits and scams, including smart contract vulnerabilities, have surpassed $1.4 billion this year, according to Immunefi. A16z crypto said that with the anticipated crypto market bull run, cybersecurity will become a top priority for users, emphasizing that Forta Firewall helps alert and prevent onchain threats.
Firewall is not Forta's first product. In 2022, the firm launched the Forta Network, which lets decentralized finance (DeFi) platforms monitor and detect threats in real time, Andy Beal, head of the Forta Foundation, told The Block. The network has been used by over 40 DeFi projects, including Compound, Lido, and MakerDAO, and remains operational, Beal said.
The Forta Foundation has also developed threat intelligence APIs, such as Attack Detector 2.0 and Scam Detector, to identify addresses involved in end-user attacks (scams) and smart contract attacks (exploits). These APIs are used by compliance firms, security companies and wallets, Beal said.
Beal said the Firewall is specifically designed to detect and prevent smart contract exploits like reentrancy attacks and oracle manipulation across the Ethereum ecosystem, including Ethereum Virtual Machine-compatible Layer 2 and Layer 3 networks. However, it does not address attacks unrelated to smart contracts, such as private key compromises.
Forta Firewall employs a machine learning and AI model called FORTRESS, which examines transaction logs to analyze and detect high-risk transactions.
"Each transaction simulated and screened by FORTRESS receives a risk score from 0 to 1," Forta said. "The closer the score is to 1, the more likely it is malicious. Each rollup and protocol that uses Firewall sets their desired threshold, above which transactions are blocked at the firewall."
Web3 security competitor Hypernative, which recently raised $16 million in Series A funding, also utilizes machine learning and AI for hack prevention. When asked about Forta's differentiation, Beal highlighted two advantages of Firewall: its complete visibility into pending transactions, including those submitted through private channels, and its independence from being faster than the attacker.
"Regardless of how the exploit is submitted, and how efficient it is, it must pass through the Firewall before it can be executed," Beal said.
Forta's business model for Firewall involves a flat monthly fee, though Beal declined to disclose the specific amount. Initial customers include Euler, Plume and Balmy.
The Forta Chain, a Layer 3 network, underpins the Firewall product by providing decentralized verifiability for all its activities. Forta introduced its FORT token in 2022 to facilitate staking, governance and now gas payments. The token is currently priced at around $0.1068, with a market cap of $51 million, according to CoinGecko.
Forta raised $23 million in 2021 in a funding round led by a16z crypto, with participation from Coinbase Ventures, Blockchain Capital and others. Beal declined to comment on whether Forta is currently raising or planning to raise additional funding.
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