Solidproof is among the most adopted smart contract and blockchain security auditing companies in the crypto space today. This Germany based entity has its aims to fix the transparency and security issues smothering the crypto space. Unfortunately, as the sector attains more progress, so do the chances for malicious actors to victimize honest investors.
As per a yearly report on crypto crimes by Chainalysis, $14 billion of all the transactions in digital currency were involved with money laundering or scams. These figures amount to a close 100 percent increase in comparison to the 2020s $7.8 billion. Along with that, the rate rises as the DeFi space, NFTs, and metaverse prevail to boom.
The DeFi space seems to be among the most impacted spaces, with 72 percent of the total crypto stolen from digital currencies arriving from DeFi protocols. Along with that, money laundering in the protocol is also something to worry about, directed to their prevailed growth over the years.
By introducing KYC procedures and auditing services in decentralized finance, this smart contract auditing company aims at limiting the avenues for bad actors to access the crypto space. This way, it tries to enhance the credibility of platforms and digital assets at large. The Solidproof Telegram and Solidproof Twitter channels are also quite wide.
What Pain Points Is Solidproof Trying To Address?
Digital currencies are anonymous and decentralized by nature, leading to a hard time following up on crimes despite their endless advantages. One of the most outstanding problems is anon projects, where the team stays anonymous. This factor offers them a way to escape if they plan to swindle their investors. However, doxxed projects are also at risk as revealing prominent details can raise the security risks.
Another point to highlight is the raised rug pulls in the space. Some teams wait for investors to purchase coins at the time of a presale, then eliminate all the funds from the venture. Slower rug pulls are more complicated for investors to catch on to, as the bad actors find an aveto siphon funds via a back-end process.
As such, you might find a venture vesting funds for an offered period and still manage to get away with user funds. The same occurs in liquidity locks, where rug pulls can go on with the team steadily withdrawing the superior coin in the pair while leaving their yet-to-mature crypto in the pool.
Smart contract ownership usually departs to the team, offering them control over alterations on a protocol and its tokens. However, to raise trust, some relinquish the right to offer more power to the community. For those who do not, the chance of the above problem is at a higher percentage.
Solidproof KYC And Auditing
Investors can turn to other ways of mitigating risks, which include the healthy spread of investments. However, the requirement to focus on the root of the issue remains.
Solidproof assures a transparent avenue during auditing to assure quality services for all its users. It takes advantage of the best German technology to stay at par with its expectations of the customer while enhancing the benefits it provides. Also, it distinguishes itself from free auditing services that could ignore several dimensions of a project, putting investors and their funds at risk.
The entity holds communication as a core value in delivering what it provides. The KYC and auditing procedures assure there is an open pathway to inform a project of the process while advising on the best avenues forward in case of an issue.
Lately, the platform released the Solidproof Automated Auto Tool (SAAT), including a faster and also a more accurate auditing process for ventures. The automated process will raise the overall efficiency of its team in producing comprehensive reports on a code of a project, compliance, security risks, and many more.
KYC Procedures Of Solidproof
On the contrary, KYC procedures highlight the user transactions and their risk of money laundering or any other illicit activities. It also investigates the relationship of the customers with the platform they are dealing with. It will provide the best course of action on how the project requires to safeguard its users in the long run.
Privacy is an important value to what a Solidproof audit does. As such, no company, user, or audit information becomes public without the approval of the parties. This way, it creates trust between projects and also their users while assuring a fruitful relationship between its customers and teams.
So far, Solidproof is constructing lasting collaborations with ventures, with the most notable one being Unicrypt. The mutually advantageous relationship assures this firm attains users; while Unicrypt releases credible projects, fair launches, and presales. As it stands, DeFi and other spaces have the most advantage from Solidproof’s operations to bring transparency and trust back to crypto space, navigating mass adoption.