ost recent fintech news has centered around the failures of cryptocurrency – from the wild variation of speculative pricing, to recent security breaches which have allowed hackers to make off with millions in vulnerable digital assets.
With all the negative publicity surrounding the cryptocurrency space – and the shocking lack of accountability which tends to accompany it – the delayed launch of one more ICO might come as no surprise. But in the case of CORION, the reasons behind the delay are quite a refreshing change from the Silicon Valley shrug-off which has become the norm.
When the CORION team heard of the recent CoinDash security breach, and the subsequent hack of the Parity system, they decided to take a proactive approach. Though still in the final days of their ICO, they were very close to launch – yet, instead of pushing to profit by launching their completed platform as promised, they decided to call in a panel of experts to conduct a 3rd-party review of the CORION platform, prior to release.
“We place the highest priority on the protection of user assets. That’s what we’re here for – to help our users grow their wealth – and we wanted to make sure we were doing everything we could to support that mission,” said Mike Denkler, CORION CEO. “In light of the recent attacks, we wanted to make sure our code was not only bullet-proof, but hacker-proof.”
But instead of the “all-clear” progression expected, the CORION team turned up more than they bargained for – a major loophole in the code which governs storage of digital assets in the secure wallet.
With a little digging, they realized they were onto something big. The discovered error wasn’t just a flaw in CORION’s secure wallet – it was a backdoor affecting the secure wallets of more than 90% of cryptocurrency exchanges and 3rd-party wallet providers.
“We never expected we’d uncover something this serious, or widespread. The vulnerability we found was a coding error which left most supposedly secure wallets completely exposed. One wouldn’t even really need to be a hacker to gain access to your digital assets – or your personal data.”
Motivated simply by the desire to protect the interests of all cryptocurrency enthusiasts and investors, they decided to move quickly. First, they halted the progression of their own ICO.
“We basically threw the brakes on the release of the full CORION platform and secure wallet – not because we aren’t confident in our code, but because the safety and security of our users data and digital assets is our top priority.”
It was a risky move, and one which may or may not pay off for them, in the longterm. The establishment of trust is paramount to gaining support for any new ICO, and a security breach such as that experienced by others in the crypto world can seriously damage the reputation of any provider – but their failure to release the full platform by the original closing date may have long lasting effects on the value of the new CORION token.
“We are well aware of the risks involved – but we wanted to do the right thing.”
Brave approach, for a fledgling cryptocurrency which has yet to establish itself as a key market player. Especially when the one considers the current enforcement (or, more accurately, lack thereof) surrounding cryptocurrencies.
Due to a lack of industry standards, the creation and set-up of a secure wallet is entirely unregulated (as is the ICO process, itself). Had CORION simply chosen to continue onward with their own offering, security be damned – their supporters would have little or no repercussion, should a security breach actually occur.
The good news? This particular flaw was discovered before any major damage could occur. CORION’s team moved quickly, postponing their own ICO and platform release, in order to work side-by-side with globally-renowned security experts. They have now identified a solution to the potential breach, which is available via GitHub as an open-source solution. https://github.com/CORIONplatform/SafetyLook
But they aren’t stopping there. They’ve also offered the solution up to other secure wallet providers, worldwide – for free.
“We’re hoping to raise the bar by providing this critical resource to others free of charge. We hope it will help boost security standards industry-wide, supporting the protection of user assets, and preventing future cryptocurrency hacks,” said Mike Denkler.
When asked why they chose not to leverage their position into one of great potential profit, the team was pretty frank.
“We don’t really need to compete that way. CORION’s built-in security features allow us to offer a truly fortified wallet – which means we stand apart from other providers. Our exchange is smart contract-based, which helps us exclude fraud and theft, and also eliminate the involvement of costly 3rd-party intermediaries… which, in turn, reduces risk by limiting exposure.
We offer additional protection through the use of two-factor authentication, and a secure web application. The use of these secure features does not entirely eliminate the risk of loss – but it certainly reduces the exposure of digital assets to the threat of malicious actors. And it really sets CORION apart from other service providers.”
“We want to put our money where our mouth is – and we think CORION is truly special.”
So far, CORION – we tend to agree.
To learn more about how CORION is leveraging advanced tech to create a truly secure wallet, eliminate security risks, and protect their users’ digital assets, read this recent whitepaper, or join the community by participating in their ICO, prior to the extended closing date of August 27th, 2017.