Blockchain cybersecurity firm Ironblocks raises $7 million
Ironblocks announced today that it raised $7 million in seed funding for its blockchain-native cybersecurity platform that uses smart contracts to automate threat detection for Web3 app developers to take steps to stop hackers.
The funding round was led by Collider Ventures and Disruptive AI, with participation from ParaFi, Quantstamp and Samsung Next. Others who joined the round included Balaji Srinivasan, former chief technology officer at Coinbase and general partner at Andreessen Horowitz and Alan Leung, co-founder of crypto infrastructure company Simplex, among others.
Iornblocks uses smart contracts as part of its security solution to catch hackers and anomalies early before they become bigger threats. Smart contracts are pieces of self-executing code written on blockchains that run when predetermined conditions are met and are fundamental parts of decentralized applications.
The entire Web3, otherwise known as the decentralized web, and the decentralized financial ecosystem are built on top of blockchains and smart contracts. Attackers often target smart contracts when stealing tokens from DeFi and other Web3 applications, making them a prime security infection point.
“We believe that smart contract security is a given right for all crypto traders and protocols, and we aim to ensure the security of data and crypto assets in the best way to achieve widespread adoption in DeFi and Web3,” said Ironblock’s CEO. Or Dadosh.
Tel Aviv-based Ironblock was launched in 2022 by co-founders Or Dadosh and Chief Technology Officer Assaf Eli. Both Dadosh and Eli are seasoned software engineers with blockchain backgrounds and DeFi cybersecurity experience who have been part of the team that developed Bancor, a DeFi trading and reward protocol.
Last year, blockchain protocols suffered huge losses due to hacks and exploits with more than $3.8 billion stolen, according to a report by Chainalysis. DeFi protocols were by far the biggest victims, followed by cross-chain bridges – which allow users to transport cryptocurrency between blockchains. Examples of major hacks from 2022 include $615 million stolen from Ronin Network, the blockchain behind the popular “Axie Infinity” game, $570 million taken from Binance Holdings Ltd.’s BNB chain, and $320 million stolen from the Wormhole bridge.
As more and more decentralized apps have been built and deployed, the need for increased security has only become more critical. A report by Immunefi, a Web3 bug bounty program, isolated more than 155 incidents during 2022 affecting DeFi protocols, representing a 56% increase compared to 2021.
Users who sign up for the platform get end-to-end security for their Web3 product, including real-time detection and notification of suspicious activity, a customizable dashboard, and a threat prevention system that can take immediate action to prevent exploitation. The dashboard also allows users to set up their own threat metrics and personalized alert monitoring for specific thresholds.
Ironblocks said it would use this funding to further develop its product and expand its current team across engineering, sales and marketing. It will also support a number of upcoming product launches and partnerships.
