Immunefi introduces a blockchain-based arbitration system for bug bounties

Immunefi has implemented the pioneering blockchain-based arbitration system for bug bounties with the objective of enhancing cybersecurity, legal enforceability, and trust within the industry.

Immunefi, a blockchain security company, has introduced the world’s first legally binding blockchain dispute resolution system, which has the potential to establish a precedent for additional blockchain-based legal applications.

The system, which was unveiled on January 21, is the first blockchain-based dispute resolution platform for bug bounties. These bounties are open offers for developers to examine a project’s code for vulnerabilities, prevent breaches, and receive rewards.

The new Immunefi arbitration system legally obligates projects to pay their bounties, in contrast to previous bug bounty programs that were reliant on trust between parties, according to an announcement shared with Cointelegraph.

Immunefi Arbitration will conduct impartial evaluations of vulnerability disclosures and ascertain the appropriate rewards. It is founded on the London Chamber of Arbitration and Mediation, and its decisions are acknowledged and enforced in international tribunals of law.

According to Mitchell Amador, Immunefi’s CEO and founder, the goal of the new system is to improve the efficacy, trust, and integrity of bug bounty programs and the broader cybersecurity sector.

“We have definitely observed the critical role that bug bounty programs have played in protecting projects from catastrophic vulnerabilities,” Amador stated to Cointelegraph.

“We are committed to leveraging their success and guaranteeing that all processes associated with the operation of a bounty program are seamless for both white hats and projects,” he continued.

A legal firm with over 2,750 attorneys in 48 locations, Greenberg Traurig, collaborated with the development of the principles for the blockchain-based arbitration system. The New York Convention, which ensures that rulings are enforceable in 172 countries, also benefits the system.

Thanks to the shared blockchain ledger’s transformative use cases and transparency, the new legal system has the potential to establish a precedent for future blockchain-based legal applications.

It is theoretically possible to apply the fundamental principles of the system to resolve any legal disputes in blockchain environments, not just those related to bug bounty programs. Amador elaborated:

“The introduction of our arbitration system is a significant step in the process of bridging blockchain technology and traditional legal systems, while our primary focus is on cybersecurity, specifically bug bounty dispute resolutions.” However, the potentialities are truly limitless. Amador further stated that the utility of blockchain technology will likely result in the further integration of these two distinct worlds over time.

Immunefi is the most extensive onchain crowdsourced cybersecurity platform, ensuring the protection of over $190 billion in user funds. At present, the platform is providing bug bounties valued at more than $181 million to ethical hackers, collectively referred to as “white hat hackers.”

Also Read: El Salvador adds 12 Bitcoin to reserve despite IMF accord