Fireblocks, a pioneer in the field of cryptocurrency custody, has introduced new security solutions for institutions that want to step into the field of decentralized finance (DeFi). These products, called dApp Protection and Transaction Simulation, aim to protect institutional investors against increasing threats in the DeFi world.

The recent rise in crypto asset prices has also increased interest in the field of decentralized finance (DeFi). Popular DeFi platforms such as Uniswap, Aave, Curve, 1inch and Jupiter offer institutions a variety of financial transactions such as exchange, lending, staking and bridging. But alongside these exciting opportunities, the DeFi ecosystem also faces security risks.

Some analysts note that DeFi platforms are not yet mature and may be vulnerable to attacks due to security vulnerabilities in smart contracts. This allows malicious actors to steal funds or manipulate transactions.

Fireblocks helps organizations reduce these risks with its dApp Protection and Transaction Simulation products. These products, which have been in beta since December, can currently be used to control decentralized applications (dApps) on more than 40 blockchains.

So how exactly do these products work?

• dApp Protection: Detects suspicious smart contracts, phishing websites and compromised dApps. This detection is accomplished by identifying malicious patterns such as spoofed URLs, malicious javascript code, and suspicious registrars.

• Transaction Simulation: Predicts the results of transactions that users will need to sign. This way, users can understand exactly what to expect before confirming the transaction. This feature plays an important role in preventing potentially harmful operations.

Fireblocks officials note that some institutions have their own Web3 research teams, but the majority have difficulty finding security personnel who specialize in this field. The solution offered by Fireblocks eliminates the need for security expertise that understands DeFi and Web3.

Fireblocks official Shahar Madar emphasizes that their solution protects the entire transaction journey of a DeFi and Web3 user. “When you connect to a dApp with your phone and are asked to start signing a transaction, we step in. We scan the transaction and counterparty, try to understand the smart contract, and provide you with full information by providing transaction simulation,” says Madar.

Fireblocks’ new products could be an important step in removing security barriers to enterprise entry into DeFi. This may contribute to the DeFi ecosystem attracting more institutional investors and maturing. However, developers still have responsibilities to increase the security of DeFi platforms and reduce the risks of attacks.

As a result, Fireblocks’ solutions offer a valuable layer of security for institutions interested in DeFi. This development can enable both traditional financial institutions and innovative startups to step into the DeFi world more safely.