What is happening with Solana?

3 Min Read - By Brian Wong

Hacks are becoming increasingly common in the Web 3 space. Just this week (what a way to start the month), Two incidents have taken place. Monday, August 1st, the Nomad Bridge Hack happened followed by Solana which took place on Tuesday, August 2nd.

What is Solana?

Solana is a layer 2 blockchain. The blockchain was developed by a software developer, Anatoly Yakovenko. The native token, $SOL are used to pay its transaction fees when transacting on Solana. As a result of Solana’s fast and cheap transactions, founders are increasingly choosing it as the blockchain network for their projects. Solana’s unique hybrid protocol allows for scalability. Both Solana’s proof-of-history algorithm and proof-of-stake consensus mechanism are used in this protocol.

Things to know about the Solana hack?

According to an industry auditor, funds have been drained from Phantom, Slope and Trust wallets. The hacker managed to carry out transactions on behalf of the victims stealing over $4.46 million worth of Solana cryptocurrencies. Aside from the recent hack, the Solana network experienced multiple outages during both 2021 and 2022, including one lasting 48 hours in January. There are many other risks involved as well. We should try to understand the cause of each incidents and learn strategies we can employ to stay safe.

Many industry experts are keeping a close eye on the wallets of the suspected attackers, which have so far been identified as A, B, C and D. You can also to this report created by Solscan. It’s highly likely that the attack was linked to interactions with Slope wallets.

Steps You Should Take To Stay Safe

If you have a Solana native wallet (or not), here are a few things you should do.

  1. Start revoking permissions on suspicious websites.

We often use our wallets to access and transact on different websites, but we should always keep track of our online activities to remain safe from future hacks or scams.

  1. Consider creating a new wallet

Even if you aren’t affected by the hack, consider creating a new wallet to stay on the safe side. You never know when it ends or when the hacker decides to acts again. We have a course on our app that goes over the basics of cryptocurrencies wallet. Take the course to understand the realities of self-custody and how you can find a trustworthy wallet to use.

Wallet Basics Course on our app.
  1. Look for resources on security of hot wallets

We foresee that this unfortunate events will get industry experts talking or sharing ways we can keep our hot wallets secure. Find resources to learn how to protect your wallet by searching on Google or Brave. We should always remain vigilant and keep our own unique private keys secure.

This article was written based on our research on the recent events, we aimed to provide quality news and educational articles for creatives, professionals, and hobbyists exploring the web 3 space through our blog. Bookmark our blog page or follow our Twitter to receive updates when we post a new article.

Brian Wong
Brian has experience managing communities for web3 startups, DAOs, and NFT collections, leading social media efforts for SMBs, as well as working in film production, and talent management roles. He is based in Singapore.