In the OpenSea marketplace, a wallet security team has launched a real-time dashboard that enables community members to follow, monitor, and detect suspected nonfungible token (NFT) hacks using offline signatures.
The developers of the cryptocurrency wallet ZenGo claim to have developed an easy-to-use NFT hack detection. This includes tracking realized NFT trades in the NFT market and contrasting the trade amount with the floor price of the NFT collection. A suspected hack will be notified if the ratio between the two trade values is suspiciously low.
At the time of publishing, the dashboard indicated that offline signatures had been used to hack nearly $25 million worth of NFTs. First of all, this kind of hack does not have a standard method for indicating the significance of the messages that users must sign. This implies that users must “blindly sign them” and “blindly trust” the message. Be’ery added that this kind of hack involves platform contracts and stated that platforms bear some of the blame in these circumstances.
Crypto wallet ZenGo team looks forward to more partnerships
ZenGo executive responded that there is presently no good answer to the issue when questioned about potential community alternatives. He made it clear that users have access to several proprietary browser extensions that provide some visibility into some offline signatures, but they need to be updated as they do not cover all offline signatures.
The ZenGo team has reportedly begun collaborating with the Ethereum Foundation, other decentralized programs, and other wallets to produce a draft Ethereum Improvement Proposal (EIP) that, if adopted, would remedy the problem.
Beery stated according to the ZenGo wallet software, The EIP allows a contract to define the precise meaning of the offline signature, so that the user may view it and decide whether or not they want to sign the offline signature and are not required to sign it blindly.
It is worth noting that the rising interest in NFT started in 2021 with the bull run in the cryptocurrency market. One year later, after a phishing attempt cost Opensea users NFTs valued at $1.7 million, that initial interest had changed to skepticism.
When the hack first happened, OpenSea was in the middle of revamping its contract system. The NFT marketplace disputed that the attack was a result of one of its new contracts, hence the majority of the attack’s specifics are unclear.
The trading volume in the NFT market has significantly decreased over the past year. The worldwide cryptocurrency market, in comparison, has experienced a downturn over the previous year, dropping from a height of over $2 trillion to below $900 billion end of last year.