In response to the recent security challenges in the cryptocurrency industry, Dr. Han Lin, founder and CEO of Gate.io, delivered a keynote speech on 'Establishing Trust Beyond Blockchain' at Seoul Meta Week, aiming to advance discussions on crypto security with leaders in technology, business, and media. He emphasized the critical importance of strengthening security measures and establishing digital trust in the current cryptocurrency environment.

Hidden Crisis in the Encryption Field

This candid statement from the CEO of a major cryptocurrency exchange may come as a surprise, but it reflects an undeniable fact. Han Lin quoted data from Gate.io researchers and Chainalysis in his speech, revealing the security challenges in the cryptocurrency field. From 2014 to 2024, the most common incidents include rug pull scams (253 cases), contract vulnerabilities (232 cases), and flash loan attacks (123 cases). It is worth noting that the value of stolen cryptocurrencies from platforms reached 8.7 billion USD between 2021 and 2023, a significant increase compared to approximately 2.5 billion USD in the previous three years. Although the total amount of stolen cryptocurrencies in 2023 decreased compared to the previous year, the number of incidents increased from 219 to 231.

In the past three years, 77% of the stolen funds came from Web3 platforms, while 33% came from centralized platforms. Of particular note, the notoriety of North Korean hackers soared in 2023, reporting 20 hacking incidents, higher than 15 incidents in 2022 and 9 incidents in 2021, with losses from their attacks reaching as high as 31 billion U.S. dollars, accounting for 36% of the total.

Trust is the foundation of everything

While discussions in the cryptocurrency space mostly focus on the numerous advantages of blockchain technology, Han Lin emphasized the necessity of tackling more challenging issues. He particularly stressed the importance of addressing security concerns, stating: "These discussions may be difficult, but they are crucial."

Gate.io, which was established 11 years ago, took the MtGox incident as a warning and has always adhered to the core principle of security. Han Lin emphasized that security is an integrated methodology, not only limited to technical architecture and custody solutions, but also includes transparency and compliance with regulatory standards.

For any cryptocurrency platform, ensuring a secure and reliable on-chain data infrastructure is crucial. Han Lin elaborated on Gate.io's security strategy, emphasizing its leading edge in data center and further strengthening data security through partnerships with AWS, Huawei Cloud, Microsoft Azure, and Alibaba Cloud. He pointed out that security is the cornerstone of building the platform and needs to be integrated from the underlying architecture.

Han Lin further pointed out that the Gate.io data center, through advanced on-chain monitoring and detection functions, not only ensures the secure access of data, but also strengthens security protection. This proactive security strategy enables the platform to continuously monitor potential security threats and respond quickly, thereby enhancing the reliability and risk resistance of Gate.io services.

Han Lin emphasized Gate.io's commitment to security and implemented measures such as 100% Proof of Reserves to achieve this. "This measure ensures that user deposits are 1:1 fund guaranteed," he explained. "Since we took the lead in implementing this measure in 2020, it has become the cornerstone of our service. In addition, we have also open-sourced the implementation method of Proof of Reserves to promote the common progress of the industry. Nowadays, this measure has been adopted by many platforms in the industry, and Gate.io will continue to devote itself to promoting the improvement of reporting standards and leading the industry to new heights of security."

Han Lin also emphasized the necessity of compliance with regulations in the cryptocurrency field, emphasizing that only by working within the legal framework can the industry achieve long-term success and sustainable development.

Building Trust Beyond Blockchain

In his speech at Seoul Meta Week, Han emphasized the importance of strengthening security measures and promoting industry collaboration in the blockchain and cryptocurrency industry. Gate.io and other industry pioneers are committed to jointly promoting stricter regulatory compliance by establishing a highly trusted and transparent environment to improve the encryption ecosystem and enhance the credibility of blockchain. On the road to continuous development in the cryptocurrency field, security and cooperation are the solid foundation for building a stable and trustworthy digital economy.