What is Lossless Crypto

What is Lossless Crypto

What is Lossless Crypto

In order to assist impacted companies in recovering their stolen assets, the Lossless Protocol is the first technology that monitors and identifies hacks. Because of this, Lossless has the ability to freeze any fraudulent transaction that meets a set of fraud detection criteria. What is Lossless Crypto

There are two stages of loss mitigation in the Lossless protocol, both of which were meant to decentralize the process by enlisting a variety of independent companies as well as the larger DeFi community in fraud prevention.

What is Lossless Crypto

What is Lossless Crypto

First and foremost, Lossless will deliver a proof-of-stake hack discovery platform, which will be accompanied with an easy dashboard that will enable manual overview and reporting for hackers who are on the lookout. Bot-friendly APIs will be made available, allowing a diverse range of community-created bots to automatically detect hacks to be hosted on the system.

Hack-spotters will get substantial prizes that will be awarded in a transparent manner in order to ensure high levels of community involvement and continued innovation. Lossless will become the first platform to reward and motivate white hat hackers for their efforts to make DeFi safer for everyone as a result of this. Once the hackers have been identified, the money that have been taken will be blocked until they can be reviewed in the second stage. What is Lossless Crypto

Second, the Lossless Decision Making Body (LDMB) will be established to review and validate the transactions that have been stopped. Participants in the Decision Making Body will include investors who own a considerable amount of $LSS tokens and public personalities who offer reliable and impartial decision-making, such as auditing companies, among other people and organizations. Following verification of the hack, the committee will put out a proposal for returning the monies that were taken from the original account.

With our team of seasoned engineers, financial professionals, DeFi specialists, and white hat hackers, we are committed to make cryptocurrency investment as accessible and secure as possible to the general public. What is Lossless Crypto

What is the Lossless protocol and how does it work?

How Lossless Reduces the Risk of DeFi Hacks

Lossless has a two-step method to recover stolen funds: first, the hacker’s wallet is frozen, and then the theft is verified by a decentralized Decision Making Body, according to the company.

The urgent or immediate freezing of a transaction after a hack will be based on community and technology, and the person who recognizes the hack and freezes the transaction will be rewarded.

After a hack has been validated by the Lossless committee, the business, and the token inventor, the freeze will be extended for a longer period of time until the fraudulent transaction has been reversed.

In the next sections, we will go through each step in further depth.

Identifying and freezing fraudulent transactions

Anyone holding LSS tokens will be able to report potentially fraudulent transactions using the Lossless system. We will offer **an easy dashboard that will enable manual overview and reporting for hack spotters** in order to achieve this goal (see above).

Our data analyst team will put in place the first round of hack-spotting mechanisms**, which will include monitoring the blockchain for anomalous token behavior and listening for on-chain events. Everyone will be able to contribute to these systems since they will be open source. On the other hand, due of the open method for paying hack-spotters, we anticipate significant community engagement in the hack-spotting process. What is Lossless Crypto

What is Lossless Crypto

 

As a result of the winner-takes-all incentive, the community will be encouraged to build on top of this basic model and to enhance it on a regular basis. The market will be able to decide the most effective methods of identifying hackers, and the prize will be awarded to the person who spots the hack the fastest. Due to the fact that hack spotters will strive to develop the quickest hack-spotting tool, the effectiveness of the system will only increase with time. As a result, Lossless will be the first platform to recognize and reward white hat hackers who work to make DeFi a safer environment for everyone.

As a result, Lossless will expose bot-friendly APIs in order to encourage the creation of hack-spotting bots developed by the community. Because of this, anybody will be able to denounce a possibly fraudulent transaction, providing they stake LSS tokens in the process.

Regardless of whether our procedures or bots built by the community report the breach, the transaction will be stopped for 24–48 hours after it has occurred. After that, the Lossless team will check the frozen address, assess the code, contact the contract owner, and decide whether or not the submission is legitimate. What is Lossless Crypto

If there is no evidence of suspicious behavior, the staked tokens of the finder will be seized as a punishment for making a fake submission.

When a transaction is found to be legitimate, the decision will be sent to the Decision Making Body for** further consideration and action. Following the first confirmation of a probable hack, the money will be blocked until the Decentralized Lossless Decision Making Body conducts an investigation and verifies the situation.

The Token Creator, the Lossless Company, and the Lossless Committee will make up the Decision Making Body, which will meet once a week. In addition to investors that own a considerable amount of $LSS tokens, the Committee will include prominent individuals and organizations who offer reliable and impartial decision-making, such as auditing companies. A corollary of this decentralization is that the validation process for hacks will be distributed to many different independent organizations — and none of those entities will have complete authority over determining the trustworthiness of a hack.**

The address will be frozen for a further 14 days if it is determined that the hack occurred, and a committee recommendation will be implemented for permanent freezing and reversal of the transaction if it is determined that the hack occurred.

By incorporating decentralized procedures into the technological architecture outlined above, hack prevention efforts will be able to more accurately represent the fundamental ideals of the ecosystem. While hack prevention was somewhat effective during the early phases of worldwide DeFi adoption, more stronger solutions are required in order to establish confidence and safety for all parties concerned.

In this blog we have provided information about What is Lossless Crypto

ALSO READ: HOW TO BUY DECENTRALIZED CRYPTOCURRENCY

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