Audit Firm to Build a Bug Prediction Market for Smart Contracts

Ethereum-based startup Solidified is developing a decentralized, smart contract audit platform, aiming to make the process easier to arrange and to provide a transparent and accountable metric of smart contract security.

The company recently conducted a Seed round with Innogy New Ventures to develop a new initiative in security - the Bug Prediction Market.

The Solidified team is working to develop the first Bug Prediction Market, where smart contract security experts can stake on whether a severe vulnerability will be found in a contract by a certain date.

By introducing the Solid token, Solidified allows access to the largest community of smart contract security experts and holds them accountable via bug bounties and the Bug Prediction Market.

According to the Solidified team, there are three general problems in a smart contract audit that the Bug Prediction Market is aiming to resolve.

Second, a single auditor or a connected group might wait and exploit a bug when the smart contract is live.

Solidified aims to offer an alternative solution to these problems by implementing the bug bounties and the Bug Prediction Market.

"In this system, every endorsement is economically backed by auditors. Auditors bid Solid tokens to take an audit job. Those who make incorrect assessments would have their stakes transferred to those who correct them during [the] bug bounty. The risk involved in securing smart contracts would be accurately modeled and capitalized, instead of externalized," explains the text of the white paper.

According to the project's roadmap, Solidified is going to launch a beta version of the Bug Prediction Market on its testnet in Q1 2019, accompanied by extensive testing of the security-confidence metric.

In Q3 2019, the startup plans to launch the Bug Prediction Market on the mainnet, giving a big start to the development of decentralized audits and the bug bounty platform.