We are excited to announce that MonitorChain has been launched on the Ethereum mainnet.
“It pains us to see the endless headlines of multimillion dollar hacks and exploits which could have been prevented so easily. Our goal is to stem the tide of these unwanted losses and bring trust and confidence back to the blockchain.
As cryptocurrency trading matures as an industry, new tools are needed to reduce the damage caused by hacks and theft. This is where MonitorChain comes in.
Monitorchain provides Real-Time Security Alerts for Ethereum Token Creators and Exchanges.
What is MonitorChain?
Designed for use as an oracle by cryptocurrency exchanges and token smart contracts, MonitorChain is an on-chain Ethereum smart contract subscription feed tied to security alert detecting block explorer node. Ethereum blockchain activity is monitored, analyzed and recorded in real time by a combination of encoded rules and heuristics to detect activity that indicates the presence of potential hacks or frauds. When an exploit or theft occurs, MonitorChain securely sends notifications to subscribers over the Ethereum network. The sent notifications include actionable information related to the incident, addresses and tokens impacted, and severity in a format that can easily be integrated to both smart contracts, as well as centralized systems via API. Once integrated, MonitroChain is allowed to instantly take preventative actions, such as temporary token contract freezes and exchange trading suspensions.
How does MonitorChain Work?
MonitorChain consists of the following components:
- MonitorChain Smart Contract (MCSC)
- Tracker and AccessInterface library (AIL)
MCSC is the main part of the MonitorChain system. It is a central point of integration for MonitorChain components. Information from other components flow towards it and all other stakeholders get data by querying its functions.
It serves as an Oracle that can be queried by other smart contracts or off-chain applications to get useful information about the statuses of blocked addresses or specific tokens. It also controls access to the token statuses and blocked addresses and governs the process of token changes.
Monitor is the listening component, through a Ethereum node endpoint provider, it listens for transaction related events which are sent to the Ethereum blockchain. Monitor performs transaction validation for each token transaction that is executed. Validation is based on the general token validation rules. These rules include checking of the considerable total supply increase, transaction of an amount bigger than sender’s balance, surprisingly big token transaction etc. The accounted rules are modeling the exploits that have already been discovered. But it also covers future exploits since it is monitoring the transferred amounts and the total supply of the token.
Each token smart contract has its own specific implementation, to further secure a token smart contract MonitorChain can perform token specific validation. This can include change of a hard cap value predefined in the contract, violation of the token release rules encoded into the contract, massive transfers from the token reserve addresses etc. Such per token monitoring requires specific development of dedicated validation scripts for token smart contracts. Based on the level of detected validation error, Monitor sends the status change to MonitorChainSC that includes token address, error level and error description. Error levels are currently defined in the following way:
0 – Good
1 – Notice
2 – Warning
3 – Severe
4 – Emergency.
Once the suspicious transaction has been detected by Monitor, it sends the transaction destination address to MonitorChainSC and spawns the Tracker component. Tracker is used for tracking the transaction tree whose root is the detected suspicious transaction destination address.
During tracking, Tracker triages the involved addresses based on previous transactions of other tokens, interactions with well-known DApps and the transaction amount value to identify whether the address should be blocked. AIL is the helper library that should be used by MonitorChain users to access MCSC. It contains two parts. The first part is the AIL contract which implements the smart contract functions available for the client and AIL library that enables Node.js developers to call MonitorChain programmatically.
Read the original article for more details: https://monitorchain.com/monitorchain-an-overview/
View Website: https://monitorchain.com
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