Crypto

Ethereum Layer-2 Solution Blast Responds to Security Concerns

courtesy of bitcoinist.com

Introduction

The development team behind the newly launched Ethereum Layer-2 solution Blast has released a statement addressing negative claims about the protocol's security and operations. The platform has gained significant attention, with a reported Total Value Locked of $443 million within just four days of operation.

Concerns Raised by Polygon Developer

Jarrod Watts, a developer relations engineer at Polygon, expressed concerns about several aspects of Blast's operation in a series of posts on X on November 23. He questioned the protocol's proposed aim, user asset safety, and accessibility.

Blast's Unique Approach

Launched on November 21, Blast claims to be a layer-2 solution that offers users native yields on ETH and stablecoin deposits. Unlike most blockchains with an immutable smart contract, Blast operates an upgradable security contract managed by a ⅗ multi-sig authorization model. While upgradable contracts are typically temporary, Blast's permanent security model raised concerns about potential threats to user assets if a malicious third party gains control of the contract keys.

Is Blast Truly an L2 Solution?

Watts argues that Blast does not qualify as an L2 solution, as it lacks a testnet, transactions, bridge, roll-up, and proof of data communication with Ethereum. He also points out that Blast currently only offers yields on deposits, with no withdrawal feature available for investors.

Blast's Response to Security Concerns

In a separate post, Blast addressed the concerns raised about user asset security. The development team defended the upgradable security model, highlighting its superiority in handling complex operations compared to immutable smart contracts. They emphasized that no smart contract can ever be completely bug-free, and bugs in immutable contracts can have severe consequences for blockchain networks.

Blast also assured users of the strength of their multi-sig model, which grants access to the upgradeable security contract. They explained that all five keys are kept in cold storage, managed by separate individuals in different geographic locations, following the common practice of platforms utilizing a multi-sig model.

Conclusion

As the attention surrounding the Blast Ethereum Layer-2 solution continues to grow, the development team has addressed concerns about the protocol's security and operations. While critics question Blast's status as an L2 solution and raise concerns about user asset safety, the team defends their upgradable security model and emphasizes the strength of their multi-sig authorization model.

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