Despite these incidents, blockchain technology and cryptocurrency have succeeded. Many projects focus on instilling trust within their products.
Auditors, Regulators, and Mathematical Proofs
Paul Brody, global blockchain leader at EY and an Enterprise Ethereum Alliance board member, believes that auditors, regulators, and mathematical proofs will play a critical role in building trust with transparency within the crypto sector. Many crypto companies have started emphasizing audits and data reporting, including Vesper Finance and Courtyard.
Smart Contract Audits
Jordan Kruger, a co-founder of Vesper Finance, noted that her firm had undergone more than fifty independent audits since launching in 2021. These audits are important not only for Vesper's users but also for the DeFi ecosystem. In the NFT sector, Courtyard has implemented audits for physically-backed NFTs.
Importance of Trust
In addition to audits, the crypto industry is taking other steps to build trust, such as implementing standards for data reporting and welcoming regulatory inspections. Trust is important not only for the industry's stability but also for attracting mainstream adoption. As Dan Morehead, COO of Pantera Capital stated, it is not blockchain technology or cryptocurrency that has failed but rather the companies that need to follow proper protocols.