Israeli Web3 security startup, Blockaid has today announced that it recently raised $33 million in a VC-led investment round. The round was co-led by Variant and Ribbit Capital, with Cyberstarts, Sequoia Capital, and Greylock Partners also participating. For its customers’ protection, Blockaid scans blockchains for wallets owned by malicious entities, then issues warnings against transacting with those wallets.
Blockaid is a blockchain-agnostic solution founded in 2022 by former members of the Israel Defence Force. As part of its strategy to align itself with major industry players to provide security solutions for Web3 applications and shield customers from fraudulent transactions, Blockaid has partnered with MetaMask, and also has OpenSea among its clients.
The startup received start-up capital and quickly began collaborating with industry leaders to address the most difficult security challenges in the blockchain ecosystem, such as malicious attacks.
A look at Blockaid’s security functionality
Blockaid primarily protects users from three kinds of security threats: phishing, fraud and hacks. In addition to identifying harmful DApps, its security solution can also mimic off-chain signatures (EIP-712s) in full. The company says it intends to use the new to expand its blockchain security product line. This, it says, will strengthen the industry’s defences against hackers and frauds.
Blockaid offers two types of security solutions. The first is its decentralised application (dApp) scanning engine. The solution works by simulating all possible user activities in a dApp and deciding whether or not the actions themselves or the dApp are malicious.
The second solution is the decentralised application scanning sandbox. The solution offers a risk-free environment for simulating user interactions with a decentralised application. A dApp is immediately labelled as a threat if even a single transaction within the sandbox is determined to be risky. Ultimately, this protects any user who relies on Blockaid from the dangers posed by the malicious dApp.
According to the startup, its solution does more than only prevent sophisticated attacks on blockchains; it also protects regular users. The system checks every interaction a wallet has with a decentralised application or a smart contract and analyses it for risk.