The Blockaid security technology was included into Coinbase Wallet, a self-custody wallet run by Coinbase’s owner in late 2023.
Coinbase Wallet and Blockaid announced the announcement in a joint article on March 13. They stated that the new technology was implemented five months ago to give Coinbase users extra protection levels.
According to the companies, Coinbase has prevented the theft of over $75 million in cash by integrating Blockaid technology. As per the statement, the security tool examined and analyzed 114 million transactions and DApp connections, resulting in the prevention of nearly 800,000 wallet connections to dangerous DApps.
According to Blockaid CEO Ido Ben Natan, the platforms counted the quantity of saved funds by evaluating the fraudulent transactions that users were shown through integration at the wallet level and computing the amount of the suggested transaction at that precise moment. “With confidence, we can state that users have saved a minimum of over $75 million in funds,” he stated.
According to Blockaid CTO Raz Niv, the $75 million is a “lower band” compared to the scams that Blockaid has identified for users of Coinbase Wallets.
“It computes the value that was blocked on these transactions and takes all the transaction warning screens we provided to Coinbase Wallet users,” he continued.
The statement states that Coinbase adds an extra degree of protection for consumers when they browse DApps, deal using Web3 protocols or addresses, and send on-chain messages by utilizing three Blockaid application programming interfaces (API).
Users of Coinbase Wallets may now better understand what will happen when they sign a transaction, including off-chain transactions like a Seaport order on OpenSea, and on-chain transactions like the transfer of Ether, thanks to Blockaid’s technology.
According to Chintan Turakhia, senior director of engineering at Coinbase, the integration has enhanced transaction simulations on at least seven chains, including the Ethereum network and six more Ethereum Virtual Machine (EVM) networks. He mentioned that Base, Optimism, and Polygon were among the supported EVM-compatible networks.
The joint research emphasized that even with transaction simulations’ promising potential, users cannot be adequately protected by this technology on its own.
A user receives extra transaction security when combined with validation, which is the process of figuring out whether a specific transaction is fraudulent. When a transaction is considered fraudulent, Coinbase Wallet customers will see a warning in their confirmation screen.
Not just Coinbase Wallet has adopted Blockaid’s transaction security solution. November 2023 saw the introduction of security alerts using Blockaid by popular EVM wallet MetaMask. The default security alerts will now be available on several blockchains, including Linea, BNB Smart Chain, Polygon, Arbitrum, Optimism, and Avalanche, according to a February 2024 announcement from MetaMask.
