Crypto | Hacken(HKN) Whitepaper
Hacken Ecosystem is a community-driven business organization with several jurisdictions worldwide. It consists of Hacken Hub (penetration testing, smart contract audit, and anti-phishing services), HackenProof bug bounty platform, Crypto Exchange Ranks (CER), and HackIT Conference. HKN, an ERC20 token, is the only payment method allowed within Hacken Ecosystem. Buying HKNs early allows token holders to receive high-quality cybersecurity services in the future at an attractive price.
quoted from : https://hacken.io/wp-content/uploads/WHITEPAPER_2.0.pdf
This white paper explains the key business components of Hacken Ecosystem. It also details the recent initial coin offering (ICO) of Hacken token that took place in the autumn of 2017. Further, the document lays out the growth prospects of Hacken Ecosystem.
Hacken Ecosystem is a community-driven business organization with several jurisdictions worldwide. It consists of Hacken Hub (penetration testing, smart contract audit, and anti-phishing services), HackenProof bug bounty platform, Crypto Exchange Ranks (CER), and HackIT Conference.
HKN, an ERC20 token, is the only payment method allowed within Hacken Ecosystem. Buying HKNs early allows token holders to receive high-quality cybersecurity services in the future at an attractive price.
Financial data and legal documentation on HKN token sale are available as a separate attachment upon request.
This document and any related documentation do not constitute an offer or solicitation to sell shares or securities. The information provided here is not intended to be a basis for any investment decision(s).
Hacken Ecosystem does not provide investment advice, counsel, or solicitation for investment in any particular security and shall not be construed in such ways. This document does not constitute and should not be construed as an offer for sale or subscription. Neither it is an invitation to offer or buy any securities or other financial instruments.
$32M stolen from Parity and $7.4M from Coindash in 2017, $72M from Bitfinex in 2016, $5.1M from Bitstamp in 2015, $460M from Mt. Gox in 2014. These are daunting fiat equivalents lost to evil hackers due to various cryptocurrency infrastructure vulnerabilities.
According to Tyler Moore of Tulsa’s Tandy School of Computer Science, since Bitcoin’s inception in 2009, up until March 2015, around 33% of all bitcoin exchanges were hacked. Cryptocurrencies certainly are not the only businesses distressed by malevolent hackers. According to President Trump, for instance, cybertheft is the fastest growing crime in the United States by far.
This presidential concern was followed by big money. The United States invested over $19B in cybersecurity as a part of the 2017 Federal Budget. This shows an increase from the $14B figure – the amount of funds in the budget allocated for cybersecurity by the Obama Administration in 2016.
Unfortunately, there is not enough talent to make use of these enormous financial resources. According to CyberSeek, there were more than 348,000 open cybersecurity positions in 2017, and this number is projected to rise to 1.8M by 2022. When one observes the growing number of evil hackers, one wonders why so many positions in the sphere are vacant.
Until recently, Eastern Europe (and Ukraine in particular) had been a safe haven for various controversial online operations. Boasting enormous numbers of highly qualified math and computer science university graduates, the country still has little to offer to these people. Nevertheless, Ukrainian entrepreneurs behind such Silicon Valley unicorns as PayPal, WhatsApp messenger, and even the very WiFi technology you are likely using right now.
Ukraine also has a long history of a somewhat complicated relationship with Blockchain. While Bitcoin has never been officially recognized as a legitimate payment tool by local authorities, Ukrainian startups and experts stand among global leaders in the Blockchain revolution.
The story of BitFury proves the point. Established in 2011 in Kyiv, BitFury controlled around 9.5% of the entire Bitcoin processing power as of January 2017, an achievement made possible due to customized mining chipsets developed by BitFury hardware engineers.
BitFury also secured a number of unique B2G partnerships, including the novel project allowing to secure land titles via blockchain. For instance, BitFury launched a joint project in cooperation with the government of Georgia.
Since Ukraine has the potential to establish itself as a European cybersecurity hub, boosting expertise in this area is of utmost importance. The value of the Ukrainian currency (hryvnia) fell following the 2014 military conflict with Russia and booming Blockchain industry will contribute to the economy of the country.
The emergence of this new vibrant industry should be facilitated by a resourceful and ethical company with expertise in cybersecurity. This is where we come into the game, meet Hacken!
Our priority is to highlight the importance of the white hat cybersecurity community for the IT infrastructure of the world. To do so, we offer a stable means of income for our clients and financial incentives for our members. In the long run, your participation in Hacken Ecosystem will help to ensure that the next generation of secure computer whiz kids will be on your side of the firewall.
Hacken Ecosystem consists of Hacken token (HKN) and a constellation of cybersecurity services. The total supply of HKNs is finite, limited to 5.6 million tokens. This number will decrease over time because the team performs routine token burns. These burns increase liquidity and decrease volatility of the HKN token.
The businesses that comprise Hacken Ecosystem are Hacken Hub (penetration testing service, smart contract auditing, and anti-phishing services), HackenProof bug bounty platform, Crypto Exchange Ranks (CER), and the annual HackIT Conference. This document contains detailed descriptions of the four areas.
Community values are of primary importance to Hacken — we encourage HKN token holders to get involved through social media and to participate in the life of the company. HKN is a specialized software utility token that employs cybersecurity professionals and offers a project-based approach. The people holding HKN need to communicate with each other in order to make use of their HKNs. Our vibrant community enriches the experience of each member and contributes to the security of their daily Internet activities.
While Hacken Ecosystem has a detailed business plan, our focus goes beyond profit. One of our goals is to grow and support various community events and meetups in Europe and beyond. Towards this end, we organize our very own international cybersecurity conference — HackIT.
The cybersecurity industry requires expertise, ethics, and persistent training. To empower our platform, we ensure that we give back to the community. We feel that setting up HackIT every year is a great way to do this. It helps to engage the cybersecurity industry worldwide through friendly competition, education, and entertainment.
A great illustration of our core values is the story of Oleksii Matiiasevych— a Ukrainian cybersecurity professional, EDCC architect at Ambisafe, and technology advisor for the Hacken team.
On July 19, 2017, Oleksii discovered a critical vulnerability in the code of the Parity Ethereum wallet. There was no time to delay, as Oleksii found evidence of an ongoing attack that compromised hundreds of Ethereum wallets. He ended up “saving”
$1,402,996.09 worth of Ethereum and transferred the money from the compromised wallets to the secure ones. Oleksii then contacted White Hat Group — they took charge of locating and returning the coins to their rightful owners.
Later, on May 22, 2018, Oleksii Matiiasevych helped to prevent a massive crisis in a large crypto marketplace by identifying a vulnerability that the top 8 cryptocurrency exchanges were susceptible to.
At Hacken we support Oleksii’s standpoint, his policy is the only acceptable course of action in such situations.
Being white hat hackers, we adhere to the ethics of computer hacking what implies providing expert security assessment to ensure comprehensive protection of a company’s information systems. Hacken specialists reflect appropriate goals, possess necessary knowledge and skills, as well as desire to make the web safe again.
For many millennia, money has been an efficient tool that unites organizations and drives their subsequent growth and development. Hacken is no exception. The distributed nature of Blockchain has enabled us to engineer the HKN token so that it has the best qualities of a modern cryptocurrency. Smart contract technology enables us to add an additional layer to Hacken by creating economic incentives and engaging the cybersecurity community to promote ethical crypto use.
HKN is the only currency accepted within the Hacken Ecosystem. Any services via HackenProof, Hacken Hub, or advanced subscription to our CER analytics must be purchased in HKNs. This will reward community members who get paid in HKNs by providing positive liquidity and low volatility.
Besides employing Blockchain in cybersecurity, HKN token also implements another interesting financial innovation in the area of tokenomics - the “burning” principle which we explain in a separate section of this paper.
When creating the HKN token, we developed our very own “burning”principle. We believe that “burning” will expedite the growth ofliquidity and lessen the volatility risks for Hacken tokenholders over time. It is important for all owners of Hacken tounderstand that “burning” applies to platform fees only – thisreduces the amount of HKNs owned by the founders of the platform;not its customers or security researchers.
The burning of HKNs is not integrated into the main smart contractof Hacken on the Ethereum Network. We want to ensure that the HKNtoken transactions between investors and exchanges will nottrigger the burning mechanism. The burning principle will beapplied only to the “product” transactions; in other words, to allHKN transfers related to the services of Hacken Ecosystem.
Every Hacken service transaction is divided into 3 parts.
The first part is the 70% of the net value of HKNs transferred.This amount is immediately delivered to the wallet of the finalrecipient. For instance, HackenProof bug bounty payment in HKNsgoes to white hat hackers who submit vulnerabilities. In case ofa service purchase (e.g. anti-phishing or smart contract audit),this amount of HKNs is considered company’s revenue.
Of the remaining 30% of the transaction, 15% of tokens representa team fee. It is applied to all services and payments - shouldthat be HackenProof or other Hacken services.
The other 15% goes towards the token burn event. These tokens aretransferred to the HKN reserve. Once the amount of HKNs in thereserve is equal to 1% of total supply, the team will sell 1% ofthe tokens (i.e. 0.01% of the total amount of Hackens as of themoment of the event) via major cryptocurrency exchanges.
We will announce the event on social media with a 24-hour notice.The sale will take place at 14:00 EET on the day following the dayof the announcement. Hacken will provide the list of exchanges tothe public at the time of the event. We reserve the right to amendthe list of exchanges in the future.
The “burning” will influence the exchange rate of Hackens vsTHE «BURNING» PRINCIPLEother crypto or fiat currencies. This allows Hacken to maintain adecent price tag for vulnerability search services, attract morewhite hat hackers to the platform, and ensure stable and efficientmaintenance of our Ecosystem. All the burning data will betransparent and available to the public via our website.
HackenProof is a Bug Bounty Platform that helps businesses toprotect their digital assets, personal data of customers, andtheir reputation through crowdsourced security.By combining a “crowd” of cybersecurity researchers (white hathackers) and HackenProof platform, we deliver the quality ofservice that cannot be matched by traditional cybersecurityfirms. Conventional cybersecurity services are constrained by thesize of their teams: the amount of time and skill employees haveas a group. Bug bounty platform solves this issue — hundreds ofsecurity researchers will test your product on a continuousbasis. This approach allows to identify vulnerabilities moreefficiently and to prevent possible cyber threats.
The HackenProof platform has gathered a great number of skilledwhite hat hackers from all over the world that specialize infinding vulnerabilities in the web, mobile, hardware/IoT, andespecially in Blockchain applications and smart contracts.The core of the HackenProof platform is ethical cooperationbetween cybersecurity professionals and responsible IT companieswho care about the security of their products. We ensureresponsible and coordinated vulnerability disclosure andencourage white hat hackers to protect modern businesses.Any actions that may potentially damage the systems of a clientare pre-negotiated and necessitate customer’s consent. Thisprocess of customization is transparent and thoroughly planned inadvance. Throughout the assessment, businesses receive frequentdetailed reports from security researchers.
A tokenized platform is decentralized among the community.Receiving remuneration in HKNs, white hats are one of thesignificant constituents representing the beneficiaries of theplatform. HKN's price directly depends on the quality of theservices provided, the number of secured clients, and the overallsize of the white hat community.
Unlike conventional cybersecurity firms, bug bounty platformattracts a crowd of highly skilled cybersecurity researchers withvarious backgrounds to find product vulnerabilities.Bug bounty platform provides transparent reporting, 24/7analytics, and information on the current status of your bugbounty program.The platform handles all operational issues - validatingsubmitted bugs, communicating with white hats, and organizingother operational activities.
- 1 / Customers sign up for the bug bounty program, chooseprogram type (private or public), determine the number ofwhite hat hackers and their skill set, and decide on rewardparameters.
- 2 / Our security team helps customers set up and manage theirprogram(s).
- 3 / After the scope of the security assessment isestablished, our team invites the HackenProof community toparticipate in the bug bounty program. Hundreds of white hatsevaluate customer’s code in search of vulnerabilities.
- 4 / Community members submit detailed reports of allvulnerabilities they discover. Their reports are checked foraccuracy, relevance, and originality.
- 5 / White hats receive bounties for discovering validvulnerabilities.
- 6 / Customer may order additional professional advice fromthe Hacken Security Solution team.
Crypto Exchange Ranks does analysis, scoring, and benchmarking ofexchanges – the platform will ease the process of finding arelevant crypto exchange.CER provides 24/7 analysis of data from all major cryptoexchanges. The information is thoroughly analyzed via advancedeconomic and mathematic models, artificial intelligence, machinelearning, linguistic programming, and a detailed cybersecurityassessment. The processed data is used as input for a multi-factorscoring model in order to produce the most precise estimations.As a result, CER clients receive accurate and up-to-date ratingsof trading platforms – this information significantly enhancesthe decision-making processes when it comes to exchanges.
Problems that are going to be resolved
- - Liquidity;
- - Quotations clarity;
- - Kitchen-cheating;
- - Arbitrage trading;
- - KYC and AML process;
- - Legal compliance & legitimacy;
- - Withdrawal process and limits (counterparty risks);
- - Public opinion sensitivity;
- - Technical and cybersecurity sustainability.
We have 5 main directions:
- - Economic and mathematic modeling in risk assessment.
- -Artificial Intelligence and machine learningalgorithmization.
- - Cybersecurity (Hacken).
- - NLP (Neuro-linguistic programming).
- - HFT (High-Frequency Trading).
Individual investors, institutional investors, traders (HFT), crypto exchanges, independent governmental agencies, and traditional financial institutions. By the latter, we mean establishments, such as pension capital funds, which do not have direct exposure to cryptocurrency and require tools to analyze risks.
Hacken Hub provides a wide range of cybersecurity services. Weemploy experts from across the world to provide customizedcybersecurity solutions for all kinds of businesses.
Specialists from Hacken apply filters to detectphishing messages and then compare the specified URIcodes to the ones cataloged in a growing database ofknown malicious URIs. Another way Hacken detectsphishing sites is by determining features of their behavior and blocking them automatically every timeusers come across them.
Our anti-phishing services also offer educationalmaterials – they teach users to recognize phishingemails and dangerous sites, protect their computerand mobile devices, choose secure passwords, andblock fraudulent Google ads and fake social media accounts that violate user’s brand name and successfor nefarious ends.
Besides, one of our most recent antiphishing services is AntiPhishing Bot. Phishers and fake channels arethe reason why we developed the bot for Telegrambecause this messaging service is one of the mostpopular communication channels in the crypto and realworlds. Among its most popular and useful featuresare blocking links in 2 modes, anti-admin phishing,statistics monitoring, and wallet recognition.
A tiny error or defect in the logic of a smartcontract may lead to the enormous financial loss.
The external audit ensures that your smart contractworks as you expect: it detects vulnerabilities in the contract and double-checks the logic of yourprogram. Hacken tests the code of a smart contractand suggests solutions for the detected issues. Ourmethodology includes testing reentrancy attacks,access control, and many more.
Here are some key benefits of doing Smart Contract audit with Hacken:
- - A detailed report
- - Reliability when it comes to tight deadlines
- - Fixed and transparent pricing
- - Appropriate and easily interpretable audit metrics
- - Analysis and testing by at least two independent researchers.
Penetration testing has become of utmost importance for companiesthat operate in the digital world.Security testing for web and mobile applications is performed tofind all possible vulnerabilities in applications. Hackenprovides clients with black-, grey- and whitebox penetrationtesting. Our professionals have substantial experience acrossdifferent technology stacks and platforms.
Here are some key benefits of doing Smart Contract audit withHacken:
- - A detailed report
- - Reliability when it comes to tight deadlines
- - Fixed and transparent pricing
- - Methodology description
HackIT is an annual international forum on cybersecurity held inUkraine.In 2015, the first HackIT conference took place. It gathered 450participants from two countries. Next year, 650 participants fromsix countries attended HackIT. About 700 people attended theconference last year. In 2018, HackIt will be held for the fourthtime and more than 1200 attendees are expected to come.The conference offers speaking panels featuring local andinternational experts, as well as specialized cybersecuritycompetitions, which are free for everyone to participate.
Hackers compete in 8 categories online: Web, Misc, Joy, Crypto,PWN, Reverse, Forensics, and Stego. Thousands of hackersworldwide take part in the CTF competition to test their skillsand win money rewards and tickets to HackIT.
HackIT Cup — an onsite Bug Bounty Marathon. It is a real challengefor the best white hat hackers gathered under one roof: theparticipant who finds the highest number of vulnerabilities inthe digital assets of a customer wins the competition.For the first time, this competition gathered the 30 brightesthackers from all over the world and offered them a chance toparticipate in a private bug bounty program with instantpayments. The participators sharpened their skills and showeddedication to community values of white hats. In 2017, on theboard of Antonov 225 Mriya, one of the largest airplanes in theworld, Steve Wozniak greeted these very researchers.
The selection round for this competition occurs during the firsthalf of the conference day. During the selection round, eachparticipant has 30 minutes to solve the maximum number of tasksto earn points. During the second half of the first conferenceday, finalists of the selection round take the podium to performreal-time cybersecurity problem-solving. Their computer screensare broadcasted to the audience, and their performance is coveredlive by a cybersports TV anchor.
- 1) HackIT is a community-driven event endorsed by the local OWASP and DEF COIN groups
- 2) The past conferences featured keynote addresses by industry leaders: CheckPoint, EY, Samsung, Cyphort, and GlobalLogic
- 3) HackIT also features three online competitions: CTF, Battle of Hackers, and CyberDetective OSINT Challenge
- 4) More than 5,000 participants from 93 countries took part in HackIT CTF 2016;
- 5) HackIT CTF 2016 winners, the DCUA team, went on to become the best CTF team (according to CTFtime.org).
- 6) HackIT 2018 will aim to bridge Europe and Asia. It will last for 5 days and will include 2 workshop days, 2 days of speaking panels, and a trip to Chornobyl.