What Is HAPI (HAPI) and How Does It Work? | KuCoin Crypto Gem Observer

2021/10/20 07:02:29

The crypto industry, despite all its potential, is often overshadowed by news of hacks and other malicious activities. This is likely hindering the adoption of crypto into the mainstream and so is holding back development and uptake.

HAPI is tackling this head-on with its take on cybersecurity for the blockchain industry. So how is HAPI going about this and will it really help to keep our holdings safe from the hands of nefarious actors?

What is HAPI?

HAPI is an on-chain cybersecurity protocol, primarily focused on the DeFi ecosystem. It prevents and notifies entities within the HAPI Protocol network about potential threats of Money Laundering (ML), hacking, and other unauthorized transactions of funds.

It provides two main services: A notification system for suspicious addresses and a binary risk categorization system.

HAPI’s vision is to become a security standard for DEXs, lending protocols, derivatives protocols and other DeFi classes, ultimately preventing illicit funds from entering any off-ramp destinations. It achieves this by marking and categorically dividing each address into tiers of potential fraudulence.

How does HAPI work?

At its core, HAPI is a set of cross chain smart contracts that are embedded into DeFI products. These smart contracts receive information from multiple sources about suspicious addresses and automatically share them out. In this way, it works as an aggregator of illicit addresses, publicly distributing these across CEXs and DEXs which can then blacklist them.

Data providers as they are known come in many forms, namely the exchanges. This data can then be brought on chain through the use of oracles. This is all overseen by a DAO. Machine learning is also applied to empower the risk categorization system to better identify the level of risk at play.

What is the HAPI token?

HAPI is the utility token for the HAPI Protocol. The token is distributed as follows:

Haken Round: 24%

Team & KOLs: 24%

Private Round: 19%

Farming: 18%

Liquidity Pool: 12%

Poolz & DAO Maker: 2%

Public Round 2: 1%

What is the HAPI token used for?

As a utility token, HAPI has a few important roles:

First, it is used for data submission. It provides the right for users to submit any information connected with hacker attacks or suspicious wallet addresses.

Then it is used for the oracle rewards. All transactions made in the security oracle database for audit review require HAPI to be used as payment to Oracles.

Governance is also dependent on the use of HAPI tokens. Users can stake their HAPI to participate in project governance such as electing data providers.

Otherwise, HAPI is needed for the security audit status. DeFi project audit statuses are submitted to a unified report center to prove that they passed a security check.

Closing Thoughts

With the ultimate goal of the crypto industry to achieve mass adoption, reading about new issues and security breaches can be frustrating. For that reason, services like those provided by HAPI are helping to clean up the image of digital currencies to become one of safety and security.

Between the use of trustless oracles, machine learning and DAOs, it seems that HAPI is on the right track. Each of these technologies are ideal for bolstering the security of projects and keeping the funds of the public safe. If it succeeds, the market may just get the push it needs to increase adoption to new levels.

With the launch of its MVP on October 18th, HAPI will hit the ground running with its key ‘Bulwark’ mechanism in place, notifying all parties about illicit activity that has taken place. It’s binary risk categorization service will also be available which both CEXs and DEXs will benefit from. It has already partnered with the likes of NEAR to secure its blockchain.

This all means that HAPI is already set to make waves in the market - keep an eye out.

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