It is advised to move your funds to a hardware wallet or major crypto exchange for security purposes.Who were the Solana hackers?
Investigators identified the following four wallets as the address of the attackers: CEzN7mqP9xoxn2HdyW6fjEJ73t7qaX9Rp2zyS6hb3iEu Htp9MGP8Tig923ZFY7Qf2zzbMUmYneFRAhSp7vSg4wxV 5WwBYgQG6BdErM2nNNyUmQXfcUnB68b6kesxBywh1J3n GeEccGJ9BEzVbVor1njkBCCiqXJbXVeDHaXDCrBDbmuy
Is Solana dead?
The widespread Solana wallet hack certainly impacts the market sentiment toward Solana, and many investors have expressed doubt about the project’s future.
Is solana layer 1
The total number of compromised wallets has edged past 8,000 and is rising by approximately 20 per minute. However, since there is no clear answer to what caused this, the market is flooded with speculation about the root cause.
Data compiled by blockchain tracking platform MistTrack highlights four wallet addresses that might be linked to hackers. These wallets currently hold around $5 million in SOL, USDC, USDT, BTC (BTC-USD), and ETH (ETH-USD).
Meanwhile, the Solana team has confirmed the breach, revealing that approximately 7,767 wallets have already been compromised.
The Solana team has also clarified that this breach is affecting its wallets’ mobile apps and web extensions. Experts are urging users to transfer their assets from Phantom and Slope wallets to other cold wallets or centralized exchange wallets in the meantime.
Is solana layer 1 or 2
Revoke Permissions for any suspicious links
— Magic Ethen 🪄 (@MagicEden) August 3, 2022
Reports indicate that all internet-connected hot wallets on Solana such as Phantom and Slope have been affected. Wallets that have not been used in more than six months seem to be mostly targeted, and all Phantom wallets have been compromised.
Phantom tweeted, “We are working closely with other teams to get to the bottom of a reported vulnerability in the Solana ecosystem. At this time, the team does not believe this is a Phantom-specific issue.”
On the other hand, crypto security firms believe that the exploit was not the result of a vulnerability with the Solana blockchain itself.
Blockchain development is continuing at pace, with robust layer 1 blockchain solutions needed in the present, which is why projects such as Cardano, Solana, and Cosmos are gaining steam.
A report on this very subject written by Messari in July highlighted that Ethereum controlled 77% of the US $110 billion locked in the DeFi sector (at the time of writing).
Phantom users, those who were affected did not generate their seed phrase using Phantom. Also, those who were solely Phantom users did not have their wallets drained.
How Do I Protect Myself from this Attack?
Users are advised to move their funds to a cold wallet such as a Ledger or Trezor hardware wallet, and ensure that the wallet has no previous approved authorizations to spend funds and is created offline following best security practices.
For users without a hardware wallet, sending funds to major crypto exchange is a viable temporary solution.
In the form of a community warning, web3 gaming company Star Atlas also urges users to withdraw permission for all of the apps in their wallets and shift money to cold storage with the Solana exploit underway.
I have been affected by the Solana attack.
It is indeed impressive, but down 20% on 5 months before, suggesting its completely unassailable lead is being chipped away at.
In this blog post we will take a quick look at what layer 1 blockchains are, what challenges the likes of Bitcoin and Ethereum face, and how Cardano, Solano and Cosmos are just three exciting new layer 1 blockchains that are drawing investment due to their enhanced functionality for creating innovative DeFi applications.
What is a layer 1 blockchain?
Layer 1 blockchains are simply the main blockchain architecture, on top of which you can build other layers or solutions.
What’s more, the 2021 Cardano Summit brought more Cardano news in the form of strategic partnerships with the global reforestation project veritree, e-sports company Rival, and more from the worlds of DeFi, Web3.0 and NFTs.
Solana went live in 2020, making it a fairly new entrant into the blockchain space. Its public blockchain, designed for building decentralized applications and marketplaces, claims to be the fastest blockchain in the world. Solana’s consensus mechanism is based on both Proof of Stake and the unique Proof of History, which allows for the fast settlement of transactions without compromising the security of the network.
Over 500 applications are built on Solana so far, with over 1,000 validator nodes processing over 2,000 transactions per second at a price of $0.00025, according to Solana’s website.
The attack is still unfolding, and initial reports indicate that private keys have been compromised. This means compromised wallet holders have limited recourse to prevent the hackers from absconding with their funds. As a result of the widespread wallet hack, many investors have expressed doubt about Solana’s future.
In the two hours following the first reports of the hack, Solana’s price dropped by 8%.
Per Vidor Gencel, the CEO & Co-Founder of Solflare, “The only thing we know is that based on the current incident reports, there has been nearly no Solflare mentions and that Solflare users are safe unless they imported their seed phrase into other wallets – then they might be exposed.
As with Cardano and Solana, Cosmos promises scalability, usability, and decentralization, all in one, and much like the other projects’ tokens, Cosmos crypto has also seen a huge price jump of around 300% in the last 2 months. The Cosmos (ATOM) crypto is now ranked 20th in terms of market capitalization.
Next-generation layer 1 blockchains
While this blog post did not address all the technical aspects, it gives an indication of the blockchain challenges that are faced by the established protocols, and what blockchain layer 1 and layer 2 projects are looking to achieve now and into the future.
Whether Cardano, Solano and Cosmos, or any other innovative blockchain takes on Ethereum is yet to be seen, but at the moment we are definitely seeing some great solutions which will bring more investment and usability to the DeFi sector, benefiting everyone.
Make sure that the wallet has no previous approved authorizations to spend funds and is created offline following best security practices.Where to move my Solana funds if I don’t have hardware wallet?
If you don’t have a hardware wallet, moving funds to a major crypto exchange is also a viable option now. However, it is recommended that users should get a hardware wallet and transfer their funds there as soon as possible. Check this page for our hardware wallet reviews and guides.
Which Solana wallets were hacked?
Multiple wallets – Phantom, Slope, Solflare, TrustWallet – across a wide variety of platforms are compromised.