Certik Report by Jesse

Select altcoins gained some major traction this week. With Voyager, Curve DAO, IOST, Avalanche, and Polkadot getting the 7 day 100%+ treatment. As more and more coins get moved to the spotlight, we get a slight feeling that it could be the beginning of altcoin season. While quality projects are getting more attention, the board hasn’t turned completely green yet. With plenty of time to keep packing our bags and dollar-cost averaging into small and mid-cap gems. This week is a project that checks off a lot of the boxes we look for in low-cap assets. Released on Binance Launchpad late last year and still flying well below the hype radar is smart contract auditing enterprise services CertiK.

Introduction

The CertiK platform is now the very first decentralized verification framework developed for building trustworthy smart contacts and blockchain ecosystems. Different from traditional testing approaches to detect bugs by private firms, the CertiK platform mathematically proves that blockchain ecosystems are bug-free and makes all information publicly available. Securing the crypto space is like a game of cops and robbers. As developers mature in figuring out ways to protect themselves from known attacks, the attackers keep finding different ways to steal. We’re no strangers to the constant Defi rug pulls happening on an almost daily basis this last year. Elaborately executed pump and dump schemes that have left even the savviest of investors empty-handed. CertiK wants to help fix this trend by providing provable trust for all. In the true spirit of blockchain, Certik feels that users should have access to on-chain, decentralized security intelligence that is immediately accessible to anybody at all times. To become a multi-faceted security solution for blockchain CertiK is utilizing Security Oracles, Reimbursement Shields, and the most secure smart contract programming language in existence, DeepSEA. With the goal of ensuring complete security of blockchains across their entire lifecycle, from development to post-deployment. These combined systems create the CertiK Chain, a security-first, delegated proof-of-stake blockchain, built to be an anchor for blockchain security integrated systems.

At the core of CertiK is DeepSEA. A collaborative effort developed by researchers from CertiK, Yale University, and Columbia University. DeepSEA is considered the most secure programming language smart contracts can be written and proven on. Working as a functional programming language that allows developers to handle complex code while verifying through the Coq proof assistant. Originally designed for implementing systems software such as OS kernels, DeepSEA uses the same set of features that are used for encapsulating states inside a kernel for implementing smart contracts. Built around four key principles, DeepSEA uses Equational Reasoning, Layered Specification, Encapsulation and Composition, and Built-In Abstract Refinement to combine all the best features of several other programming languages. DeepSEA provides a streamlined solution that automatically generates both executable code and a formal model that can be loaded into the Coq theorem prover. By integrating smart contracts and Coq, users can apply Formal Verification to the most challenging tasks, allowing for a completely verified program. With the CertiK Chain, smart contract publishers have the option to store ABI (Application Binary Interface) on-chain along with deployed smart contracts. A feature not found in many other blockchain ecosystems that allows users to interact more easily with smart contracts without the need to keep track of and manually copy-paste ABIs every time.

CertiK Security Oracles use this special language to retrieve a set of security scores from decentralized networks of security operators. These Security Oracles relay these assessments and combine them to create a real-time, on-chain aggregate score that can be used by anybody seeking to confirm the security of a contract. Allowing projects to get their code audited in an agile fashion to meet their aggressive timelines. By using a decentralized group of security operators, this suite of security primitives is constantly growing. Allowing new static analyzers and security tools to be created, and incorporated into the ever-updating Security Oracle score. These Security Oracles allow CertiK to offer a service called QuickScan. CertiK QuickScan is a unified set of security tools that leverage automated technologies to check deployed smart contracts against a wide range of known vulnerabilities at scale. It produces accurate smart contract security scores that state the risk potential for hacks and code malfunctions. CertiK QuickScan consists of a combination of static and dynamic technologies, which are called Security Primitives. Security Primitives are like security service endpoints but are used for scanning smart contracts. Each Security Primitive assesses a specific security area against a smart contract and assigns a security score between 0–100. Currently, there are five QuickScan Security Primitives from two categories (Static and Dynamic). With CertiK actively integrating new Security Primitives into QuickScan. Smart contracts are scanned against five thorough security checks during a single run of QuickScan (Whitelist Primitive, Blacklist Primitive, Quality Primitive, Bytecode Analysis Primitive, and Source-Code Analysis Primitive). Depending on the complexity, it may take up to 6 hours for completion as these Security Primitives need huge volumes of computational resources to complete.

Created to be a flexible and decentralized way for members to be reimbursed for any lost or stolen crypto is CertiK Shield. CertiK Shield Pools use CertiK Chain’s governance system to reimburse lost, stolen, or inaccessible crypto assets of any blockchain network. CertiKShield Pools are intended to serve as discretionary community funds used to protect its members in the event of irretrievable loss. Pool Members may submit detailed Claim Proposals and open a voting period for the CTK network to determine whether reimbursement is appropriate. This decentralized, on-chain voting process allows CertiK Chain users to actively take part in determining reasonable coverage scenarios, creating a dynamic and fully flexible coverage model. Additionally, CertiK is interoperable and able to be utilized in conjunction with existing blockchains and smart contract platforms. The CertiK Chain was built as a Cosmos Hub while maintaining full EVM compatibility, designing itself to not only co-exists with many other blockchains but to have deep technical integrations and collaborations with them for stronger security. As soon as a contract is audited by CertiKOS it becomes eligible for Shield services. By applying risk-reward structures to different members, CertiK Shield shares risk among members, strengthening the trust and reliability of the entire CertiK ecosystem. Currently, available Shield projects are Kava, Pancake Swap, Multiplier, Hard, BUSD, WBNB, Nexus Mutual, and of course CertiK. With Certik Shield, users gain access to CertiK Noops, making available some of the most robust Node Solution Services provided in blockchain to date. Allowing developers to launch and set up customized infrastructures with a few clicks. With full-stacks deployed and hosted through leading cloud providers and local data centers to serve clients worldwide. Services include 24-hour monitoring, experienced DevOps to offload technical burdens, and a user-friendly interface for easy configuration. All starting at less than $20 USD a month.

The Token

Designed to play a major role in the functioning of the ecosystem and intended to be used solely as the primary utility token on the platform is the CTK token. The project initially raised $39M USD from five rounds of private token sales, where 38% of the total token supply of 100M CTK was sold between $0.77 USD and $1.90 USD per token between December 2017 and June 2020. With the initial Public Sale taking place on October 23rd, 2020, a total of 1.5M (1.5%) CTK was made available for sale on Binance Launchpad. The remaining tokens have been distributed as 10% for the Team, 25% for the Foundation, 17.50% for the Community Pool, and 8% for the CertiK Shield Pool. Of the total supply currently, 25.3M CLK are in circulation with a timeline for release placing 50% of the total supply in circulation by August 2021. The goal of introducing CTK is to provide a convenient and secure mode of payment and settlement between participants who interact within the ecosystem on the CertiK Platform. The CTK token also functions as the economic incentives which will be consumed to encourage users to contribute and maintain the ecosystem of the CertiK Platform, creating a win-win system where every participant is fairly compensated for their efforts. CTK is an integral and indispensable part of the CertiK Platform because, without CTK, there would be no incentive for users to expend resources to take part in activities or provide services for the benefit of the entire ecosystem on the CertiK Platform. As a proof-of-stake protocol based on the Tendermint PoS architecture, CertiK Chain provides staking rewards to the CTK bonded validator nodes. These staking rewards are used to incentivize a network of secure, high availability validator nodes to provide computing resources that strengthen the security of the entire chain. CertiK Chain’s decentralized Security Oracle is a core dApp that requires CTK to function. To retrieve security analysis from the decentralized Security Oracle, CTK is required as the incentive. Tokens are awarded to the party that ultimately provides the security analysis, allowing for a more transparent and competitive system of security investigators. Users can store and transfer their CTK on the chain’s native DeepWallet.

The Founders

Certik Global Ltd. is a privately held company founded in Singapore in 2017 and currently operating its headquarters out of New York City under the jurisdiction of the Cayman Islands. Founded by Assistant Professor at Columbia University Ronghui Gu, Professor of Computer Science at Yale University Zhong Shao, and Oracle Cloud Developer Muhan Zou. The team has expanded greatly since starting to build and develop working relationships with many individuals in the blockchain space. Giving CertiK a massive and valuable team of over seventy individuals currently working to develop this new level of blockchain security. With positions still available the project has no intentions of passing up good people who continue to join them.

Early investors in the project include 8 Decimal Capital, Nirvana Capital, NEO Global Capital, Eden Block, DHVC, Chainfund Capital, Kosmos Capital, Binance Labs, AU21 Capital, Consensus Lab, and Fundamental Labs.

Market Impacts

After releasing through Launchpad the CTK token suffered many of the same downfalls other new assets face. Hitting the market at $1.85 USD and still below private sale prices, CTK fell rapidly to $0.70 USD in the first week. Since then there have been continued signs of accumulation happening between $0.80 and $1.20 USD as the daily volume remains steady in the $5M USD range for the last 90 days. Giving a great opportunity for entry at this point, CTK’s total market cap is under $30M USD and the token price remains well below early entry pricing. In social channels, CertiK has gained little or no interest for the community as a whole. So much that the project had not been on my radar until just a few weeks ago. Showing that even when you eat, sleep, and breathe crypto there’s no way to keep up with everything. In a sea of new projects, CertiK remains steady in its development and focus on building a top tier enterprise service with many weekly updates to the projects GitHub. But, a shift to the community will have to happen if CertiK’s market capitalization intends to make its way into the list of top tier projects. As the project currently only has 10K Twitter followers and 5k Telegram members, these numbers should be much higher with over two years of project knowledge available.

Concerns

Aside from the lack of interest in the community for Certik, the token supply allocations for public vs private sales can not be considered a fair distribution model. While many early investors dating back to late 2017 have waited a long time to make a return on that investment. It’s come at the cost of a better, more community-driven distribution model.

Conclusion

As the number five Binance Lanchpool project by market capitalization with barely $30M USD. I’m pleasantly surprised to see this CertiK fall between the cracks the past few months. With an abundant team of engineers and intellectuals, everything about this project screams perfection. Coming up on its third year in development, the level of detail is abundantly clear throughout. With a lot of people putting a ton of effort into giving everyone fair and useful tools to secure blockchain contracts function as intended. As seventeen major Defi exploits and hacks took place in 2020, this resulted in a loss of over $154M USD. While two of these attacks were the result of the founding team exit scamming. The other fifteen instances were the result of contract exploitation. Showing the majority of problems are equated to bad code more than bad actors like many think. By developing CertiK Shield, Certik Chain OS, Executive Node Services, and Security Oracles before the thought of creating a token was even relevant. CertiK shows a clear motive in adapting positive and verifiable changes in the security of blockchain ecosystems. Projects no longer have any excuse to not have a 100% secure and audited chain operating. Cheers to you Certik, keep up the good work.

Until next time, remember that the only guarantee is BTC. So keep stacking that Satoshi.

-Jesse Koz

#MrHarrilasagna

Follow Jesse on Twitter

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