Immunefi has rolled out the first-ever blockchain arbitration system for bug bounties. This new system aims to boost trust and make legal agreements more enforceable in the cybersecurity field.
As a leader in blockchain security, Immunefi has launched a legally binding dispute resolution platform. This is a big deal. Announced on January 21, it’s the first of its kind for bug bounty programs. These programs invite developers to check a project’s code for security flaws, prevent hacks, and earn rewards.
In the past, bug bounty programs relied heavily on trust. But with the new Immunefi Arbitration system, projects are legally required to pay their bounty rewards. This is a significant change, as detailed in a recent announcement to Cointelegraph. The system will provide fair assessments of vulnerability reports and determine the right rewards. It’s based on the London Chamber of Arbitration and Mediation, and its rulings can be enforced in international courts.
This initiative seeks to enhance efficiency, trust, and integrity in bug bounty programs and the broader cybersecurity industry. Mitchell Amador, Immunefi’s founder and CEO, stated, “We’ve clearly seen how crucial bug bounty programs have been in saving projects from catastrophic vulnerabilities.” He added, “We aim to build on their success and make the entire process smoother for both ethical hackers and projects.”
The rules for this blockchain arbitration system were developed with the help of Greenberg Traurig, a legal firm with over 2,750 attorneys across 48 locations. Plus, the system benefits from the New York Convention, which makes its rulings enforceable in 172 countries.
This legal system could set a precedent for more blockchain-based legal applications. The transparency of a shared blockchain ledger opens up many possibilities. While it focuses on cybersecurity, especially bug bounty disputes, Amador noted that this launch is a significant step in connecting blockchain technology with traditional legal systems. He said, “The possibilities are really endless.”
As blockchain technology evolves, Amador believes we will see these two worlds come together even more.
Immunefi is the largest on-chain crowdsourced cybersecurity platform, protecting over $190 billion in user funds. Currently, it offers more than $181 million in bug bounties for ethical hackers, often referred to as white hat hackers.