Earning from Crypto Bugs: What Are Bug Bounty Programs?

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Bug Bounty is a dedicated initiative launched by a cryptocurrency project to uncover and address any errors, bugs, or vulnerabilities in their software code. Participants who identify and report such issues are eligible for rewards.
In this article, we will delve into cryptocurrency projects that have embarked on a Bug Bounty campaign and elucidate how to garner rewards by pinpointing flaws in a project's software.

Who initiates Bug Bounty?

Any firm operating within the realm of Web3, software development, and cryptocurrency applications may instigate a Bug Bounty campaign. When it comes to cryptocurrency applications specifically, Bug Bounties are typically launched by:

● Centralized and decentralized cryptocurrency exchanges;

● Crypto wallets;

● Cross-chain bridges;

● Protocols for yield farming and liquidity mining;

● Blockchains, smart contract platforms (especially Testnet).

The objective of a Bug Bounty is straightforward: to uncover software bugs with the assistance of the community, rectify them promptly, and reward those active users who contribute to this process.

Bug Bounty: Key vulnerabilities to hunt for

One should be vigilant for a diverse array of errors that might arise in applications. These can vary from sluggish website loading times to vulnerabilities in a smart contract that could result in substantial financial losses.

Considering external attacks, vulnerabilities within the scope of Bug Bounty can be categorized into several groups:

■  Cross-Site Scripting (XSS): This is where an attacker has the capability to embed malicious code onto a webpage, which could then be transferred to a user's browser or computer.

■ SQL Injection: This involves the hacker integrating harmful software to compromise or pilfer client data.

■ Remote Code Execution (RCE): This enables an attacker to fully compromise a server.

■ Cross-Site Request Forgery (CSRF): This refers to the ability to perform unauthorized actions in the user's name.

■ Authentication Bypass: This involves circumventing the authentication system and associated security programs.

In terms of internal issues within cryptocurrency systems, Bug Bounties are designed to uncover:

● Unlawful manipulations with transactions or asset prices, infringements of tokenomics or balances;

● Vulnerabilities within databases, remote code execution;

● The illicit siphoning of funds, either from users or the company itself.

Pros and cons of the program

Bug Bounty engagements come with their own set of advantages, such as the prospect of earning without making substantial investments. Additionally, cryptocurrency projects can conserve considerable funds that might have been lost had the software issues not been identified and rectified in a timely manner.

The key drawbacks include the requirement of investing substantial time and the necessity for specialized knowledge. Merely testing the platform often falls short. Bug Bounty participants are usually developers, coders, or even hackers who are adept at scrutinizing a project's software.

Allocating Bug Bounty rewards

The rewards for a Bug Bounty are directly contingent on the discovered vulnerability. For glitches with the basic interface or minor bugs, the remuneration will span from $100 to $500. However, for unearthing serious code vulnerabilities, rewards can skyrocket to tens of thousands of dollars. The amount of compensation hinges on the potential losses that the company might have incurred had the vulnerability slipped detection.

For instance, take the Bug Bounty campaign for the WhiteBIT Network's testnet. For minor errors, users can earn up to $100, and beyond that, the reward is dependent on the level of risk associated. Discovering critical errors could potentially rake in up to $5000.