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Hacker awarded $2 Million for fixing Ethereum creation bug

Optimism, an Ethereum layer-2 solution, solved a significant vulnerability that allowed for the unlawful and continual generation of ETH tokens. Optimism, according to sources, may have just solved a major system vulnerability issue.

Through an Ethical Hacker, Jay Freeman, who uncovered weaknesses in the code and rescued the network from substantial theft threats, the possible problem caught the attention of Ethereum developers.

Hacker awarded $2 Million for fixing Ethereum creation bug

Image Source: NDTV Gadgets 360

An Etherscan employee is said to have caused the flaw, which has already been fixed. Malicious users on the chain may have taken advantage of the bug if it hadn’t been addressed quickly. This means that a hacker may have obtained access to an infinite supply of new ETH tokens.

Jay detailed how this vulnerability might lead to the unlimited copying of the world’s second most valuable cryptocurrency in a detailed blog post. He said that any Ethereum developer may leverage one of the chain’s forks to create new tokens automatically. Running the SELF-DESTRUCT opcode command on a smart contract that once held ETH tokens causes a constant regeneration.

Fortunately, Optimism restored the network’s integrity by fixing the bug before it could be exploited. Following notification of the problem, the development team quickly implemented a fix on Kovan testnet and Optimism Mainnet.

The problem was also reported to other affiliated forks and bridges to Optimism. As a result, Optimism and other Ethereum-related projects are currently bug-free.

Following the quick resolution of the bug, Optimism awarded whistleblower Jay Freeman a $2 million reward. Freeman’s bounty is now one of the highest ever recorded, according to the recent award.

However, it’s a fair incentive when you consider how much money could have been lost if a bad party had discovered the flaw. Furthermore, the bonus encourages developers to report code flaws rather than exploiting them for personal gain.

Other layer-2 rollups, in addition to Optimism, have been documented to contain technical flaws. Polygon quietly addressed a problem that exposed 92 percent of MATIC tokens to malicious parties in December, making it a popular scaling solution. Fortunately, two ethical hackers stepped forward to alert the network and were each awarded $1.75 million.

A whitehat hacker had discovered and identified a gap that could have cost Polygon a billion dollars a few months prior. Wormhole, an Ethereum bridge, lost more than $325 million last week.

Several DAOs (Decentralized Autonomous Organizations) have recently taken proactive measures to address issues. Offering rewards to Whitehats who find and report security loopholes is still a viable way to fix potential smart contract flaws.

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Also read: Everything You Need to Know About Injective Protocol

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