Richard Marr founded Quantstamp after the 2016 DAO hack with the aim of improving blockchain security and preventing similar incidents. Quantstamp has completed over 700 audits and secured $200 billion in digital assets through continuous security measures.
Richard Marr is one of the most important players in the rapidly changing world of blockchain, where digital assets and decentralized apps are transforming traditional banking. But it was his experience of personal loss, not direct or foreseen, that led him to pioneer blockchain security.
Hard lessons learned from the 2016 DAO hack
2016 is a big year for the blockchain community and marks the beginning of Richard Marr’s journey. Ethereum was quite popular at the time, and many investors, including Ma, were excited about its potential.
Aiming to transform corporate structure and governance, Ma chose to invest in DAO, one of the first decentralized and autonomous businesses.
However, just a few weeks after his investment, the DAO was attacked and approximately $50 million worth of Ether was lost. This hack, which affected the confidence of many early adopters, was one of the most important events in the history of blockchain.
For Ma, the loss was more than just money. This was a harsh lesson in the weaknesses of this new technology. Ma later said, “After seeing the DAO hack occur, I realized the need to improve security in the blockchain field.”
This event made him determined to protect the growing field of decentralized finance (DeFi) from similar dangers, and he changed his career from being an investor to becoming a security analyst.
Building Quantstamp: Responding to DAO hacks
Richard Marr responded to the DAO hack with action rather than retreat. Ma co-founded blockchain security company Quantstamp in 2017 with the aim of securing decentralized apps and smart contracts. Quantstamp’s goal was clear. It’s about preventing losses like the one Mr. Ma and many others have experienced.
The company focuses on providing security audits for blockchain efforts, discovering weaknesses before hackers can exploit them.
Ma’s knowledge that blockchain security is not a one-time event was one of the key revelations that fueled Quantstamp’s success.
Unlike traditional software, which protects systems by “patching,” blockchain efforts require the continued participation of millions of people. Any weakness can be exploited right now. Therefore, Quantstamp’s strategy was not just to audit the project once, but also to build a continuous security architecture.
Mr. Marr has frequently advised us to grow, adapt, and remain ever-vigilant, emphasizing the need for continuous security measures. Under his direction, Quantstamp has completed over 700 security assessments and protected over $200 billion worth of digital assets.
The complexity of securing DeFi projects
While Quantstamp’s success has been impressive, Ma is the first to admit that securing blockchain initiatives is no easy task. He sometimes highlighted the complexity of the DeFi scene in interviews. Decentralized apps interact with multiple systems, all of which can have flaws.
Ma noted that one of the most important obstacles is the belief that one security audit is enough. While many initiatives are keen to initiate and attract users and emphasize their “audit” nature, Ma points out that auditing is only one aspect of the solution.
Mr Ma warned that it did not address certain critical issues in almost a third of the projects it audited. Therefore, even audited projects can still be attacked.
Additionally, the security landscape is constantly changing. Solana and Layer 2 solutions, among other emerging blockchain ecosystems, introduce new complexities and require new security technologies. By constantly changing our approach and learning from every project we work on, Quantstamp continues to stay at the forefront.
From Wall Street to Blockchain: A Change in Focus
Mr. Ma’s career began in the world of high-frequency trading (HFT) before founding Quantstamp on Wall Street. Ma, a quantitative strategist at Tower Research Capital, was responsible for creating a program that processed millions of dollars of trades each day.
The fast-paced setup of HFT has given Ma a new perspective on the shortcomings of the traditional financial system. They could require expensive infrastructure and proprietary information to run efficiently.
This encounter was crucial in shaping Ma’s blockchain concept. Blockchain technology has enabled a degree of transparency and accessibility never seen before in traditional finance.
Anyone with an internet connection has the potential to participate in the global financial system. But with that accessibility comes the potential for security breaches. This insight ultimately motivated Ma to focus on blockchain security.
