Cutting-edge web3 threat detection for the Cardano Network by Check Point Software Security

[GENERAL] Name and surname of main applicant

Dan Danay Head of Web 3.0 at Check Point

[GENERAL] Are you delivering this project as an individual or as an entity (whether formally incorporated or not)

Entity (Incorporated)

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

12

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language.

No

[GENERAL] Summarise your solution to the problem (200-character limit including spaces)

We will develop a cutting-edge web3 threat detection for Cardano leveraging our expertise in cybersecurity. We aim to make it safer and easier for institutional players to build on Cardano.

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

No

[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.”

No dependencies.

[GENERAL] Will your project’s output/s be fully open source?

No

[GENERAL] Please provide here more information on the open source status of your project outputs.

No, the IP generated during the project is Check Point's proprietary technology

[METADATA] SDG rating

https://checkpoint.com/about-us/esg/

[SOLUTION] Please describe your proposed solution.

Public blockchains offer a great potential for business innovation, but they are also highly susceptible to cyber threats and exploits. Although Cardano was designed with security in mind, the lack of (1) real-time security measures and (2) reputable cyber-security vendors that “web2” brands recognize and value, hinders large-scale institutional adoption of Cardano. To address this, we will develop a cutting edge web3 threat detection system tailored specifically for Cardano. This system will integrate advanced threat intelligence and monitoring to protect the Cardano ecosystem. This web3 threat detection system can later enable real-time prevention systems, such as wallet and/or smart contracts firewalls, protecting the Cardano ecosystem.

The proposed solution:

Phase 1 - research and development:

Leveraging Check Point's industry-leading cybersecurity technology, we will port existing capabilities developed for other blockchain ecosystems, and tailor them to address the specific vulnerabilities, threats and technical implantation of the Cardano network. During this project, we aim to engage with different Cardano ecosystem stakeholders such as node operators, developers, and the broader community to ensure widespread adoption and feedback integration. 

To demonstrate impact, we will provide transparent reporting on the system's effectiveness. Key performance indicators will include the number of threats detected, system uptime, and user feedback. For 30 years, Check Point has provided world-class cyber security solutions to many of the world's biggest brands and enterprises, who value our security capabilities and reputation. This project is a first-step, we hope that through shared work with the Cardano ecosystem over time, we can make Cardano a leader in security, meeting the security standards and requirements of these enterprise clients and foster broader adoption.

Phase 2 - promotional:

The second part of the project focuses on marketing activities, such as PR, community events, and workshops with web3 industry leaders, and businesses interested in entering web

• Web3 conferences: Check Point will co-host and participate in industry conferences (i.e. Cardano summit, Consensus, Paris Blockchain Week), panels, events and side events presenting the project and the security value and leadership of the Cardano Network. 
• Joint marketing campaigns: develop joint marketing initiatives showcasing the unique real-time threat detection system, its performance and Check Point’s innovative work over the Cardano Network.
• Blog posts and articles: Check Point will publish blog posts and articles about topics such as Cardano’s security, vulnerabilities and attack vectors discovered, technological advancements, and best practices in relation to the project on Cardano.
• Press releases: announcing the collaboration with the Cardano ecosystem, help generate media coverage and industry buzz.
• Product demos and trials: When and if applicable, we will offer demos of the solution and encourage potential customers to experience the benefits firsthand.

We will coordinate the activities with the community and will aim to feature & collaborate with multiple companies in the ecosystem. The collaboration between Check Point and Cardano could be a key access point to many of the brands as security and compliance are basic requirements for leading brands adoption.

The Web3 cybersecurity Threat Detection for Cardano by Check Point Software Technologies solution we are offering to develop, is unique as it aims to serve the Cardano ecosystem as a whole, monitoring the entire blockchain, not only specific partners. We believe that this could be beneficial in the positioning of Cardano as a secured network, ready for adoption. 

Connecting both on a technical level as well as understanding the ecosystem dynamic will support those joint activities for mutual success, aiming to support Cardano mass adoption.  

[IMPACT] Please define the positive impact your project will have on the wider Cardano community.

Integrating Check Point's security solutions to secure the Cardano network will have several positive impacts on the wider Cardano community:

Innovation and Ecosystem Development

1. Encouraging Innovation: With improved security, developers can focus more on innovation and business logic. This will likely lead to the development of more sophisticated and diverse dApps, enriching the Cardano ecosystem.
2. Supporting Decentralized Finance (DeFi): Security is a critical concern for DeFi applications. By improving security through Check Point, Cardano can become a more attractive platform for DeFi projects, fostering growth in this dynamic sector.

Enhanced Security and Trust

1. Robust Intelligence Against Cyber Threats: Check Point is a leader in cybersecurity solutions, offering advanced threat prevention, malware protection, and network security. Check Point entering the Cardano ecosystem can have a profound impact on its security, reduce the risk of cyber attacks, ensuring the safety of user assets and data.
2. Improved wallet and smart contract security: This will enhance the reliability and trustworthiness of decentralized applications (dApps) running on Cardano.

Boosting Adoption and Growth

1. Increased Confidence Among Users and Developers: A more secure network will attract more users, developers, and institutional investors. Knowing that the Check Point is collaborating with Cardano, stakeholders will be more inclined to engage with the network.
2. Facilitating Regulatory Compliance: Enhanced security measures can help Cardano meet regulatory requirements more effectively, which is crucial for wider adoption, especially in regulated industries like finance.

Community and Economic Benefits

1. Protecting Community Investments: Enhanced security measures protect the investments of community members, including $ADA holders and participants in staking pools. This helps maintain the value and stability of the Cardano network.
2. Economic Growth: A secure and robust Cardano network can lead to economic growth within the ecosystem by attracting more projects, partnerships, and users, leading to a vibrant and dynamic blockchain community.

Education and Awareness

1. Raising Awareness on Security Best Practices: Partnering with a renowned cybersecurity firm like Check Point can also raise awareness and educate the Cardano community on best practices in cybersecurity, fostering a culture of security-mindedness.

In summary, integrating Check Point’s security solutions into the Cardano network will not only enhance the network's security and trust but also drive adoption, foster innovation, and contribute to the overall growth and resilience of the Cardano ecosystem.

[CAPABILITY & FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

About check point

Check Point Software Technologies Ltd. (www.checkpoint.com) is a leading provider of cyber security solutions to corporate enterprises and governments globally.

Check Point protects over 100,000 organizations of all sizes.

Check Point provides a comprehensive cyber security solution for banks and financial institutes to secure the network, cloud, users, and access, using one unified management.

Check Point also provides cyber solutions for the crypto realm in the form of smart contract scanning and identifying malicious transactions.

Check Point and smart contract security:

Check Point is working with key financial institutions worldwide and they can see the growing interest from the market regarding blockchain tech. However, they are still at an early stage concerning their strategy for blockchain security. They have a dedicated team evaluating the market, needs, risks and opportunities. 

Check Point has already developed an initial solution that aims to identify attacks for web 3 and blockchain, looking for exploitation of transactions and sophisticated analysis to analyze any transaction and smart contract.

The team's engagement in several Cardano initiatives has allowed us to establish relationships with key companies within the Cardano ecosystem, such as Genius Yield, Minswap, SundaeSwap, Optim Finance, Cardano Foundation, and more. These relationships will be invaluable during the design and dissemination phases of this project.

Examples of the world class research team's work from the past 2 years:

Web 3.0 security by Check Point

ETHEREUM’S CREATE2: A DOUBLE-EDGED SWORD IN BLOCKCHAIN SECURITY

CHECK POINT RESEARCH ALERTS ON A NEW NFT AIRDROP CAMPAIGN

THE RISING THREAT OF PHISHING ATTACKS WITH CRYPTO DRAINERS

CRYPTO DECEPTION UNVEILED: CHECK POINT RESEARCH REPORTS MANIPULATION OF POOL LIQUIDITY SKYROCKETS TOKEN PRICE BY 22,000%.

Securing the chain

[Project Milestones] What are the key milestones you need to achieve in order to complete your project successfully?

This milestone is the initial one, Check Point researchers will search for vulnerabilities and exploits in Cardano and Haskell

Outputs:

• Research report for the Cardano blockchain

Acceptance Criteria:

• Several vulnerabilities and exploits found in Cardano

Evidence of Completion:

• Link to the research report

This milestone focuses on creating the threat detection system, ensuring it meets all performance, technical and security requirements.

Check Point will develop, train and improve its detection engines to tailor suit Cardano giving it the top tier threat intelligence based on milestone 1..

Outputs:

• Threat detection system developed.

Acceptance Criteria:

• Running system on a private testnet identifying simulated malicious transactions

Evidence of Completion:

• Demo video showing the system’s ability to detect malicious transaction in simulation mode on a private testnet

This milestone focuses on deploying the threat detection system in a test environment and conducting thorough pilot testing to ensure its effectiveness and reliability.

Outputs:

• Threat detection system deployed in a test environment.
• Pilot test plan and testing protocols.

Acceptance Criteria:

• Successful pilot test results demonstrating the system's effectiveness in detecting threats.

Evidence of Completion:

• Video of a working demo on the pre-prod testnet

This milestone involves the full deployment of the threat detection system on the Cardano network, along with training for users to ensure effective operation.

Outputs:

• Fully deployed threat detection system on the Cardano network.
• Conduct workshops to demo the system.

Acceptance Criteria:

• System is operational and performing as expected on the Cardano network.

Evidence of Completion:

• Dashboard monitoring the Cardano Mainnet

This milestone focuses on executing co-marketing efforts to promote and present the threat detection system, positioning Cardano as a technical pioneer and a leading blockchain in terms of cyber security. This co-marketing effort will include PR, field marketing (events, conferences) and workshops.

Outputs:

• Marketing campaign plan, including promotional materials, and partnership announcements.
• Conducted marketing activities, such as press releases, community events, and workshops.
• Finalized business model and multi-year security plan.

Acceptance Criteria:

• Successful execution of marketing activities with measurable engagement metrics.
• Positive feedback from participants and stakeholders.

Evidence of Completion:

• Reports on marketing activities, including detailed events, and promotional campaigns.
• Participant feedback from community events, and workshops.
• Workshop documentation, including agendas, presentations, and feedback.

This milestone focuses on creating a comprehensive project close-out report and a summary video that encapsulates the project's achievements, learnings, and overall impact on the Cardano ecosystem.

Outputs:

• Comprehensive project close-out report.
• Summary video highlighting the project's goals, processes, outcomes, and impact.

Acceptance Criteria:

• The project report is detailed, covering all aspects of the project, including challenges faced, solutions implemented, and metrics of success.
• The summary video effectively communicates the project's story and key achievements to a broad audience.

Evidence of Completion:

• Published project report, shared with stakeholders and the broader Cardano community.
• Video link to the summary video, shared on appropriate platforms (e.g., YouTube, project website).

[RESOURCES] Who is in the project team and what are their roles?

Dan Danay - Head of Web3 security 

Dan Danay is an experienced crypto entrepreneur, a Ycombinator alum (Airmada, W16) with an MBA from MIT Sloan (2015). Dan is a venture partner and a founding member at Orange DAO. Dan advises, mentors and is active at different capacities @ Ycombinator (fellowship, start-up school), Outlier Ventures, and several other VCs and accelerators. Prior to Check Point, Dan led a number of crypto infrastructure projects focusing on advanced cryptography and privacy, including keyTango and Clan Network.   

Oded Vanunu - Chief Technologist & Head of Products Vulnerability Research

Oded Vanunu boasts two decades of InfoSec expertise, serving as a distinguished Security Leader and Offensive Security authority. Transforms security concepts into innovative products, with a portfolio of 5 patented cybersecurity defense methods. As the author of "Cyber and Hacking in the Worlds of Blockchain & Crypto," Oded is a speaker at prestigious events like BlackHat and Defcon. Renowned for uncovering critical vulnerabilities, he has left an indelible mark on major platforms including Facebook, Instagram, WhatsApp, TikTok, Amazon's Alexa, Fortnite, Atlassian, OpenSea, and many more WEB3 platforms.

Roman Zaikin - Security Researcher

Roman Zaikin is a distinguished cybersecurity expert specializing in Web3 technologies, with a focus on securing decentralized applications (dApps) and blockchain networks. Leveraging his extensive experience in information security and hacking research, Roman identifies vulnerabilities and develops advanced security solutions to safeguard digital assets in the decentralized ecosystem. His work ensures the integrity and resilience of Web3 infrastructures, protecting against emerging threats. As a leading figure in the Web3 security community, Roman frequently shares his insights at conferences and through publications, significantly contributing to the advancement of security practices in the decentralized technology landscape.

Dikla Barda - Security Researcher

Dikla is a Security Researcher at Check Point Security Technologies with over ten years of experience. She has identified vulnerabilities in major companies like Facebook, WhatsApp, Telegram, AliExpress, LG, DJI, TikTok, and Alexa. Recently, she has focused on blockchain security, publishing significant research on smart contract vulnerabilities, liquidity pool manipulation, rug pull scams, and NFT airdrop scams.

Yair Ziv - Group Manager Web3 security

Yair is a technology leader with a strong focus on cybersecurity and software development. With extensive experience in managing and developing innovative security solutions, Yair has significantly contributed to enhancing the security frameworks of various organizations. He excels in leading cross-functional teams and driving complex projects from inception to successful completion. Yair's expertise in threat intelligence, risk management, and incident response has established him as a trusted advisor in the cybersecurity community. Yair led a couple of services serving millions of users today.

Gidi Zisk - Software Engineer Web3 Security

Gidi Zisk is a dynamic professional in the software industry, known for his expertise in software development and project management. With a proven track record of leading development teams and delivering high-quality software solutions, Gidi excels in creating innovative products that meet market demands. His skills encompass full-stack development, agile methodologies, and the integration of advanced technologies to enhance software functionality and user experience. Gidi's dedication to continuous improvement and his ability to navigate complex technical challenges make him a valuable asset in the tech industry. Through active participation in professional forums and knowledge-sharing platforms, he contributes to the growth and evolution of the software development community.

Shay Gammer - Partnership Coordinator

Shay is a seasoned professional with a rich background in computer science and finance, adept at leveraging blockchain technologies to drive innovation. Serving as project lead for several related Catalyst Funded Projects, Shay will be responsible for coordinating efforts between Check Point and the Cardano Ecosystem, ensuring the ongoing alignment of the project with Catalyst’s goals and standards, thus ensuring the project's overall success.

[BUDGET & COSTS] Please provide a cost breakdown of the proposed work and resources.

1. Project Planning and Management: 

• Planning Tools and Software: $5,000
• Consultation Fees: $10,000

2. Cloud costs: 

• Servers: $80,000
• Storage: $35,000
• Networking: $25,000
• Backup: $25,000
• Miscellaneous: $15,000

 3. Development: 

• Front-end Developers: $100,000
• Back-end Developers: $100,000
• UI/UX Designers: $30,000
• Development Tools and Environments: $10,000

 4. Testing: 

• QA Engineers: $80,000
• Automated Testing Tools: $20,000

 5. Training and Documentation: 

• User Training Sessions: $10,000
• Documentation Tools: $5,000
• Technical Writers: $5,000

6. Marketing: 

• Marketing Strategy and Planning: $10,000
• Digital Marketing Campaigns: $20,000
• Content Creation and Advertising: $15,000
• Public Relations and Outreach: $10,000
• Community engagement: $30,000 

Total Budget: $640,000 = 1,422,000 ADA based USD/ADA value of 0.45 

Adding 5% admin and contingency budget, total requested budget = 1,493,000 ADA

[VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

The provided budget does not encompass the total cost. Corporate overhead expenses, which will be incurred by Check Point, are not included in this estimate

Enhanced security represents significant value for money in the Cardano ecosystem in several ways:

1. Trust and Adoption:

• User Trust: Enhanced security builds trust among users and investors, ensuring that their assets and data are safe. This trust is crucial for widespread adoption and long-term engagement.
• Institutional Confidence: Institutional investors and enterprises are more likely to engage with and invest in a secure platform, increasing overall market value and liquidity.

2. Risk Mitigation:

• Prevention of Hacks and Thefts: By investing in robust security measures, Cardano can prevent costly hacks, thefts, and breaches that can lead to financial losses and damage to the ecosystem’s reputation.
• Regulatory Compliance: Enhanced security helps in meeting regulatory requirements, avoiding fines, and ensuring compliance with legal standards.

3. Sustainability:

• Long-term Viability: A secure ecosystem is more sustainable and resilient to attacks, ensuring its long-term viability and operational integrity. This stability attracts more developers, users, and projects to the platform.
• Innovation: Security investments allow developers to focus on innovation rather than constantly dealing with security vulnerabilities and incidents.

4. Economic Benefits:.

• Reduced Recovery Costs: Preventing security incidents reduces the costs associated with incident response, recovery, and restitution.

  

5. Reputation and Market Position:

• Competitive Advantage: A secure platform differentiates Cardano from competitors, positioning it as a preferred choice for users and developers concerned about security.
• Brand Reputation: Maintaining a strong security posture enhances Cardano’s reputation in the market, fostering loyalty and attracting new participants.

6. User Experience:

• Peace of Mind: Enhanced security provides users with peace of mind, knowing their transactions and data are secure, leading to higher satisfaction and retention.
• Smooth Operations: A secure ecosystem ensures smooth and uninterrupted operations, preventing disruptions that could affect user experience.

7. Community Growth:

• Developer Engagement: A secure environment attracts developers who want to build and deploy applications on a reliable platform, leading to a vibrant and innovative ecosystem.
• User Base Expansion: Enhanced security can attract more users who prioritize security, expanding the user base and increasing network effects.