What Happened: Crypto exchange Coinbase Global Inc (NASDAQ: COIN) has launched a smart contract security tool called Solidify to detect and classify smart risks within crypto protocols.
The new tool was unveiled by Coinbase’s Principal Blockchain Security Engineer Peter Kacherginsky, who said in a blog post that Solidify would help “automate, standardize, and scale” their due diligence process for new token listings.
“Manual smart contract analysis is a time intensive and error prone process. Experienced teams miss occasional vulnerabilities which can lead to significant monetary loss (sic),” said Kacherginsky.
“To solve this problem we developed a tool called Solidify (a play on Solidity) to increase the rate of new asset security reviews without lowering our high security standard that Coinbase customers have come to expect for protecting their tokens.”
Why It Matters: Solidify will evaluate the risks of “hundreds of smart contracts” and ultimately determine whether a Coinbase should list a crypto token or not.
In automating this process, crypto assets approved to be listed on Coinbase may come at a much quicker pace.
Read also: Cathie Wood Loads Up Heavily On Bitcoin Plays Coinbase, Grayscale Bitcoin Trust On Dip
So far, Solidify is limited to the Ethereum blockchain to review ERC-20 tokens but plans to expand to other EVM-based platforms in the future, while also making the tool open source.
Coinbase expects that this tool will be used by smart contract auditors, asset issuers, and other exchanges to help make digital asset ecosystems more secure.
Price Action: Coinbase shares closed 0.79% higher at $227 at press time.
Image: Courtesy of Coinbase
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