Can decentralized finance (DeFi) effectively combat its hacking issues with an added layer of decentralized technology? Israeli cybersecurity company Ironblocks believes that it can with its innovative new network.

On October 30, 2024, Ironblocks is launching a phased deployment of a Web3 security layer named Venn. According to its creator, Or Dadosh, who is also the CEO of Ironblocks, Venn aspires to establish a "new economy" for security within the cryptocurrency realm.

Venn is designed to pre-screen transactions and allow security experts to collaborate with cryptocurrency applications that seek additional insights into their transaction processes. For instance, a participating DeFi application may provide cryptocurrency incentives to auditors and cybersecurity firms that scrutinize pending transactions, Dadosh explains.

This process occurs before any cryptocurrency transaction is executed. The Venn system routes potential transactions, swaps, loans, and transfers through its network first, with security personnel able to flag and halt any activities deemed suspicious. Legitimate actions are then sent to the blockchain for validation.

"It functions similarly to a firewall in traditional web applications," Dadosh remarked.

Prominent DeFi platforms such as Ether.Fi and Ethena are set to participate in Venn’s public testnet, as indicated by Dadosh. Several security firms will also be involved, with the network being distributed among these firms, each serving as a node operator.