UTONIC Protocol and TonBit Form Strategic Security Alliance to Protect TON and Telegram Ecosystems

Nov. 21, 2024 – UTONIC Protocol, the first native Restaking platform on the TON blockchain, has announced a powerful collaboration with TonBit, a renowned security expert and early supporter of the TON ecosystem. Together, they are establishing a Security Alliance to strengthen and secure the ecosystems of both TON and Telegram, with a particular focus on safeguarding Telegram-based trading bots and decentralized applications (dApps).

Addressing Vulnerabilities in TON and Telegram Ecosystems

The recent attack on DEXX.ai, a popular Telegram trading bot for memecoins, highlighted critical vulnerabilities within the Telegram ecosystem. The attack compromised users' custodial wallets and resulted in millions of dollars in lost funds. UTONIC Protocol identified that many Telegram trading bots rely on centralized private key storage, which is prone to single points of failure—exposing users to severe risks.

In response, UTONIC Protocol has teamed up with TonBit to develop a more secure solution for private key management, specifically for Telegram trading bots. Their solution combines Multi-Party Computation (MPC) with Actively Validated Services (AVS), ensuring greater decentralization and security.

The UTONIC Protocol: Decentralizing Private Key Storage with MPC and AVS

The hybrid approach introduced by UTONIC leverages MPC and AVS to offer a highly secure and decentralized method for managing private keys. Here’s how it works:

• The User’s Device

• The Trading Platform

• UTONIC’s AVS Network

2-of-3 Multi-Signature: Every transaction requires two out of the three parties (user, trading platform, and UTONIC AVS network) to sign, ensuring that no single party can access the user’s funds without consent.

AVS as the Trusted Layer: UTONIC implements AVS as a security layer in partnership with trusted validators, creating a shared security model. This system utilizes restaked assets to provide insurance, aligning economic incentives with protocol stability and enhancing the security framework of the ecosystem.

This model guarantees that private keys remain non-exportable and fully decentralized, significantly reducing security risks for Telegram trading bots. Additionally, Telegram trading bots can deposit assets into UTONIC’s Restaking pools, which act as insurance in the event of any loss related to the AVS network.

A Comprehensive Security Strategy for TON and Telegram dApps

UTONIC's security solution goes beyond just key management. It incorporates periodic asset snapshots and API access for real-time scanning, ensuring regular asset verification and enhanced protection against potential vulnerabilities.

Periodic Asset Snapshots: The AVS network takes regular snapshots of assets, ensuring transparent, secure verification without requiring the movement of assets. This mechanism enhances security and ensures that assets are always accurately reported.

API Access for Security Scanning: Through UTONIC’s AVS API, projects within the TON and Telegram ecosystems can selectively scan critical modules, identifying vulnerabilities and improving overall security. This service is particularly beneficial for sectors like gaming and finance.

• Gaming: AVS minimizes risks related to centralized control by leveraging decentralized storage for in-game points and random number generation.

• Finance: AVS ensures secure and transparent operations with decentralized MPC wallet custody, oracle pricing, decentralized order storage, and ZK-based storage for privacy-preserving user relationships.

The Security Alliance: A Unified Approach to Protect TON and Telegram

TonBit recognizes the inherent security limitations of TON’s decentralized framework, especially within Telegram’s infrastructure. Despite TON's strengths, security risks persist due to centralized elements and the blockchain's native randomness mechanism.

To address these challenges, UTONIC Protocol and TonBit have formed a strategic Security Alliance focused on safeguarding TON and Telegram’s ecosystems. This alliance aims to protect the integrity of sidechains, oracle networks, bridges, and other applications vulnerable to security breaches.

Security Alliance Features:

Security Audits: Projects undergo an initial security audit to identify vulnerabilities and assess the current security posture.

AVS Protection: Following the audit, UTONIC implements AVS to continuously validate assets, providing real-time security and periodic snapshots to ensure ongoing protection.

Key Members of the Security Alliance

UTONIC Protocol: The first revenue-sharing restaking layer on TON, enabling users to restake TON tokens and LST TON tokens, and earn uTON as liquid restaking tokens.

TonBit: A sub-brand of BitsLab, TonBit is an expert in smart contract audits and a key builder of TonScanner, a universal browser for the TON Blockchain. TonBit specializes in securing the TON and Telegram ecosystems, ensuring the integrity of decentralized applications.

Particle Network: A Web3 leader specializing in decentralized MPC smart wallets and social login solutions for dApps. Particle Network supports UTONIC’s security approach, advocating for decentralized custody solutions and the elimination of centralized risks such as private key loss.

“Centralized custody brings significant risks, and it is essential for our ecosystem to adopt the best technologies available to ensure security,” says Pengyu Wang, CEO of Particle Network.

PinkPunk: An advanced smart trading bot operating on Telegram, PinkPunk is dedicated to implementing cutting-edge security measures, including MPC and restaking, to protect user funds and ensure safe trading.

Conclusion: Securing the Future of TON and Telegram

The collaboration between UTONIC Protocol and TonBit is a critical step in safeguarding the TON blockchain and Telegram’s ecosystem from growing security threats. Through their innovative solutions combining MPC, AVS, and decentralized key management, this Security Alliance aims to create a more resilient and trustworthy environment for Telegram-based trading bots, dApps, and the broader TON ecosystem.

For more information and to join the waitlist for UTONIC’s advanced security solutions, visit www.utonicprotocol.com.