Security infrastructure firm Firewall raises $3.7 million in pre-seed funding

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The Block2024/03/06 17:14

By:The Block

Quick Take North Island Ventures, Breyer Capital and Hack VC co-led a $3.7 million pre-seed funding round for the blockchain security firm Firewall. Firewall will use the funds to grow its team of six employees, develop its tech and bolster community building and marketing endeavors.

Firewall, a blockchain security infrastructure firm, announced on Wednesday that it raised $3.7 million in a pre-seed round co-led by North Island Ventures, Breyer Capital and Hack VC .

As Firewall's first funding round, the money raised will be used to grow its current team of six full-time employees, develop its tech and bolster community building and marketing endeavors.

Firewall is developing a firewall solution for blockchain networks to prevent smart contract exploits. Unlike traditional network firewalls, which monitor incoming and outgoing transactions to identify threats using predefined security criteria, Firewall employs rollups — aggregating multiple transactions into a single batch — and "programmable transaction finalization rules" to intercept exploits before they are recorded on the blockchain. The "proof-of-exploit" consensus mechanism it is creating classifies smart contract exploits as “invalid state transitions” to be reversed.

"Blockchain consensus is meant to formalize social consensus into programmatic rules. We know it's already a social consensus that smart contract exploits shouldn't be accepted as valid state transitions, you see this clearly after every exploit," the firm's co-founder Devan Purhar told The Block. "Do people refer to the Kyber 'transactions' that netted $50 million? No, instead it's the ' Kyber exploit ,' synonymous with theft. That's why we're updating blockchain consensus to correctly reflect this mechanically."

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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