CertiK, a U.S.-based end-to-end cybersecurity solutions provider, announced on Tuesday the launch of CertiKShield, which is a decentralized, membership-based plan to provide reimbursements for lost of stolen cryptocurrency assets of any blockchain network.
According to CertiK, CertiKShield membership enables claimants to be reimbursed if their crypto is lost or stolen from their shielded accounts. Memberships are open to both individuals and blockchain projects, with secured projects such as Kava joining as one of CertiKShield’s first members.
“CertiKShield is fully collateralized; members purchase “Shields” that represent reimbursement limits, and the underlying collateral needed for these Shields is reserved from the collateral pool. The collateral pool is filled by members who provide their own crypto to be used to pay out approved reimbursements, and in exchange, the Collateral Providers collect the Service Fees paid by the Shield Purchasers.”
CertiK further revealed that Collateral Providers who stake CTK also earn normal staking rewards from CertiK Chain’s proof-of-stake network, compounding earning rewards. Speaking about the program’s launch, Daryl Hok, COO of CertiK, stated:
“While security audits are essential in identifying and remediating vulnerabilities, there is no silver bullet; companies and individuals seeking safeguards must diversify with multiple methods of risk mitigation. A security audit is effective at preventing vulnerabilities, and a CertiKShield membership is a valuable safety net in case anything unexpected happens.”
Founded in 2017, Certik describes itself as a blockchain and smart contract verification platform founded by top formal verification experts from Yale and Columbia University. The company stated:
“Different from the traditional testing approaches, CertiK attempts to mathematically prove blockchain ecosystem and smart contracts are hacker-resistant and bug-free. CertiK’s key features include a layer-based decomposition approach, pluggable proof engine, machine-checkable proof objects, certified DApp libraries, and smart labelling.”