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Blast network achieves $400M TVL, refutes allegation of excessive centralization

Blast network achieves $400M TVL, refutes allegation of excessive centralization

In response to claims of centralization, the Blast team took to social media to defend their protocol’s security. However, Polygon Labs developer Jarrod Watts raised concerns about Blast’s security risks and centralization. Watts argued that Blast’s multisignature upgrade functionality, which requires three out of five signatures, could pose a significant risk if compromised.

According to Watts, if an attacker gains control of three team members’ keys, they could potentially steal the entire $400 million locked in Blast’s contracts. He also questioned Blast’s classification as a layer 2 network, stating that it lacks a bridge or testnet and simply accepts and stakes users’ funds.

Furthermore, Watts pointed out that Blast’s contracts can be upgraded to set any smart contract as the “mainnetBridge,” potentially allowing an attacker to steal user funds without needing to upgrade the contract.

Despite these concerns, Watts expressed doubt that Blast would lose its funds but cautioned against sending funds to the protocol in its current state.

In response, the Blast team defended their protocol’s security, claiming that it is as safe as other layer-2 networks. They argued that while non-upgradeable contracts may seem more secure, they can still contain bugs that render them vulnerable. The team emphasized that the keys for the Safe account are stored in cold storage, managed by an independent party, and geographically separated.

It is worth noting that Blast is not the only protocol to face criticism for having upgradeable contracts. Other protocols, such as Stargate and Ankr, have also been scrutinized for similar vulnerabilities.

Summary:

– Blast network has gained over $400 million TVL since its launch.

– Polygon Labs developer Jarrod Watts raised concerns about Blast’s centralization and security risks.

– Watts highlighted the potential for an attacker to steal funds if they gain control of three out of five team members’ keys.

– He also questioned Blast’s classification as a layer 2 network, stating that it lacks a bridge or testnet.

– Watts pointed out that Blast’s contracts can be upgraded to set any smart contract as the “mainnetBridge,” potentially enabling fund theft.

– The Blast team defended their protocol’s security, arguing that it is as safe as other layer-2 networks.

– They emphasized the storage of keys in cold storage, managed by an independent party, as a means of safeguarding user funds.

– Blast is not the only protocol criticized for having upgradeable contracts; Stargate and Ankr have faced similar scrutiny.

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