Forta Raises $23M to Enhance Smart Contract Security

OpenZeppelin Invests $23 Million in Blockchain Security Firm Forta

OpenZeppelin, a leading blockchain cybersecurity company, has announced a significant $23 million investment in Forta, a security service specializing in the protection of smart contracts.

Investment Details and Backers

The funding round was spearheaded by Andreessen Horowitz, experiencing a 3x oversubscription according to OpenZeppelin CEO and co-founder Demian Brener. Additional investors included prominent names such as Coinbase Ventures, True Ventures, and Blockchain Capital.

OpenZeppelin will maintain an ownership position in Forta following this investment.

The Rise of Smart Contracts and the Need for Security

The emergence of blockchains with native programmability has enabled the creation of smart contracts – self-executing programs – for a wide range of applications.

While Bitcoin initially gained traction as a potential medium of exchange or store of value, subsequent blockchains like Ethereum introduced the capability to build and deploy these smart contracts.

Forta's Approach to Web3 Security

Forta aims to secure smart contracts across the broader blockchain ecosystem. It represents a unique approach to security, leveraging the principles of Web3 itself.

Rather than a traditional security vendor model, Forta focuses on empowering a community of developers to create the tools necessary to safeguard their own projects.

How Forta Works: Agents and Nodes

At the core of Forta is a network of “agent writers,” developers who create code designed to identify potential threats. These threats are categorized into four key areas:

• Cybersecurity
• Financial
• Operational
• Governance

These agents are then executed by nodes, forming the operational backbone of the Forta network.

Code Reusability and Scalability

A significant advantage of the Forta system is the potential for code reusability. Developers can write code once and adapt it for deployment across multiple blockchain chains.

This approach allows developers to collectively enhance security across the blockchain landscape.

Decentralized Security for a Decentralized World

Forta believes that the rapid pace of innovation in the blockchain space necessitates a decentralized security solution. The team argues that a centralized approach cannot effectively address the constantly evolving risks.

Therefore, security for decentralized systems must be addressed through equally decentralized methods.

Forta's Business Model and Future Plans

Brener emphasized that Forta’s initial priority is to foster a thriving developer community. This involves expanding access to agent writing beyond its initial private beta program.

As the platform attracts more developers, it will evolve into a centralized hub for smart contract security tooling, paving the way for monetization opportunities.

Potential for a Decentralized Autonomous Organization (DAO)

Looking ahead, Forta may transition into a Decentralized Autonomous Organization (DAO). This would represent a significant milestone, demonstrating the blockchain community’s ability to leverage external investment and internal expertise to build and maintain its own security infrastructure.

The Broader Implications

The investment in Forta underscores the growing recognition of the importance of security in the blockchain space.

Enhanced smart contract security will reduce risk and encourage wider adoption of blockchain technology, benefiting investors like a16z and Coinbase.

The funds invested represent a small fraction of these firms’ overall portfolios, but the potential impact on the market could be substantial.