Immunefi, a blockchain security firm, launched the world’s first legally binding blockchain dispute resolution system, which may set a precedent for more blockchain-based legal applications. The system, announced on Jan. 21, is the first blockchain-based dispute resolution platform for bug bounties — open calls for developers to review a project’s code for vulnerabilities, prevent hacks and earn rewards.
While previous bug bounty programs relied on trust between parties, the new Immunefi Arbitration system legally binds projects to pay their bounties, according to an announcement shared with Cointelegraph. Immunefi Arbitration will provide impartial assessments of vulnerability disclosures and determine the appropriate rewards. It is based on the London Chamber of Arbitration and Mediation, with rulings recognized and enforceable in international courts of law.
The new system aims to enhance efficiency, trust and integrity in bug bounty programs and the wider cybersecurity industry, according to Mitchell Amador, Immunefi’s founder and CEO. “We’ve clearly seen how crucial bug bounty programs have been in saving projects from catastrophic vulnerabilities,” Amador told Cointelegraph. “We aim to build on their success and ensure that all processes related to running a bounty program are seamless for both white hats and projects,” he added.
The rules for the blockchain-based arbitration system were developed in collaboration with Greenberg Traurig, a legal firm with over 2,750 attorneys in 48 locations. The system also benefits from the New York Convention, which makes rulings enforceable in 172 countries.
A “groundbreaking step” in bridging blockchain with the legal system The new legal system could set a precedent for more blockchain-based legal applications, thanks to the transparency and transformative use cases of the shared blockchain ledger. The system’s basics could theoretically be applied to resolve any legal disputes in blockchain environments, not just bug bounty-related issues. Amador explained: “While focused on cybersecurity, particularly bug bounty dispute resolutions, the launch of our arbitration system is a groundbreaking step in bridging blockchain technology and traditional legal systems. But the possibilities are really endless.” “Over time, we will likely see these two separate worlds merge further,” thanks to the utility of blockchain technology, Amador added.
Immunefi is the largest onchain crowdsourced cybersecurity platform, safeguarding over $190 billion in user funds. The platform is currently offering over $181 million worth of bug bounties for ethical hackers, also known as white hat hackers.