Bybit Reveals Fund-Freezing Mechanisms on 16 Blockchains

Bybit’s Lazarus Security Lab disclosed on November 12 that 16 major blockchains incorporate mechanisms to freeze or restrict funds, with 19 more capable through minor adjustments.

These findings highlight security measures’ importance against potential exploits and bolster governance transparency, indicated by past asset freezes on Sui and BNBChain.

Bybit Report Highlights Freezing on 16 Major Blockchains

Bybit’s Lazarus Security Lab has identified fund-freezing mechanisms in 16 major blockchains.

The report classifies freezing methods as hard-coded, configuration-based, or contract-based. BNBChain, VeChain, and Sui are notable examples. These mechanisms, in some cases, helped prevent large-scale thefts, improving security and governance in the sector.

This report sparks significant discussions on blockchain autonomy and security. Social media platforms and forums show varied reactions from the community, with some stakeholders calling for greater transparency in the implementation of such mechanisms to maintain user trust and industry’s integrity.

Community reactions vary, with some praising the initiative’s potential for improved security, while others question its implications on decentralization. David Zong, Bybit’s Head of Risk Control, emphasized the transparency benefits of this disclosure. Users express concern over potential misuse or lack of control over their assets due to these built-in freeze options.

Regulatory Implications and Future of Blockchain Security

Did you know? The revelation of these mechanisms could spur regulatory attention, potentially leading to tighter controls on blockchain governance.

According to CoinMarketCap, Ethereum (ETH) currently trades at $3,539.64, with a market cap of $427.22 billion. ETH’s 24-hour volume is $32.51 billion, marking a decline of 13.50%. Over the past 24 hours, ETH decreased by 0.34%, yet saw a 7.28% rise over the week.

Coincu research suggests the revelation of these mechanisms could spur regulatory attention, potentially leading to tighter controls on blockchain governance. Historically, these freezing tactics prompt mixed reactions concerning their compatibility with decentralization and user rights, indicating a future trend in greater regulatory scrutiny and adjustments in blockchain ecosystems.