On February 22, 2025, the Bybit exchange was hacked, resulting in the theft of 10 billion USD, causing a global stir in the cryptocurrency market. The Hong Kong Shunhe Group and the Singapore SDAO Foundation jointly emphasized the core role of its zero-knowledge proof technology (ZKP) in enhancing the security of trading platforms and addressing theft risks.

Recently, the global cryptocurrency trading platform Bybit suffered the largest hacking incident in history, with over 400,000 ETH and stETH transferred to unknown addresses, causing asset losses and panic among investors worldwide. This incident triggered severe fluctuations in the cryptocurrency market and exposed the security vulnerabilities of centralized exchange cold wallet storage systems. However, in response to this issue, SDAO proposed an innovative solution based on zero-knowledge proof (ZKP) technology and introduced the potential of its self-developed ZKPSOC chip in privacy computing and security protection, becoming a key technology to address similar incidents.

Zero-Knowledge Proof Technology: Fundamentally Enhancing Security

Zero-Knowledge Proof (ZKP) is a cryptographic technique that allows one party to prove the truth of a statement to another party without revealing any additional information through mathematical proofs. Applied to the cryptocurrency field, ZKP can greatly enhance data privacy and protection during transactions. With ZKP, platforms can not only verify the validity of transactions but also ensure that user data is not leaked during the process, significantly increasing the system's resistance to external attacks.

ZKPSOC Chip: Technology Breakthrough in the Cryptocurrency Cold Wallet Defense Line

The ZKPSOC chip launched by the SDAO Foundation, as a hardware implementation of zero-knowledge proof technology, can provide comprehensive security guarantees within cryptocurrency trading platforms. Unlike traditional cold wallet storage methods, the ZKPSOC chip uses zero-knowledge proof algorithms to ensure that every fund transfer during transaction verification is conducted securely and without loopholes. Even if hackers attempt to infiltrate the exchange's system, they cannot breach the chip's encryption mechanism because it can verify and prevent illegal operations without exposing transaction data.

Especially in the recent Bybit hacking incident, hackers stole funds by tampering with smart contract code and cold wallet signatures. The ZKPSOC chip can effectively prevent this attack method through hardware-level protection. It provides higher security protection and identity verification systems, prevents platform vulnerabilities from being exploited, and ensures the safety of funds in both cold and hot wallets.

The Importance of ZKP to the Industry: More than Just Cryptocurrency

SDAO's zero-knowledge proof technology is not limited to the cryptocurrency industry; its application prospects are broad and can provide solutions for multiple industries such as finance, healthcare, government, and enterprises. In the financial sector, ZKP can help banks and financial institutions conduct safer identity verification and transaction auditing, reducing the risks of fraud and identity theft; in the healthcare industry, ZKP can protect patient privacy information while ensuring data authenticity for information sharing; at the government and enterprise level, ZKP can enhance data processing and storage security, avoiding sensitive data leaks and misuse.

Security: Building Digital Trust for the Future

As the cryptocurrency market continues to develop and investor demand increases, the security challenges faced by trading platforms are becoming more severe. Through the innovative application of the ZKPSOC chip, SDAO can help major platforms achieve better privacy protection and data encryption, creating a safer and more reliable trading environment for the global cryptocurrency industry.

The occurrence of this Bybit incident reminds us once again of the importance of security in the cryptocurrency industry. As a highly decentralized financial system, trading platforms, investors, and technology developers should recognize the significance of privacy protection and transaction security, and should not rely on traditional security measures but instead timely adopt zero-knowledge proof technology to better cope with potential future attack threats.

SDAO's Layout and Future Outlook

SDAO has been committed to promoting the application and popularization of zero-knowledge proof technology and has strengthened the implementation capacity of this technology in practical scenarios through the independently developed ZKPSOC chip. The company is currently collaborating with multiple cryptocurrency trading platforms and financial institutions to advance the widespread application of ZKP technology, enhancing the overall security and trustworthiness of the industry. Through this technology, SDAO brings new breakthroughs to the cryptocurrency industry and provides a reliable security protection solution for various industries worldwide.

Conclusion

The Bybit hacking incident not only shook the cryptocurrency industry but also served as a warning for technological innovation and security enhancement. SDAO's ZKP technology, with its excellent privacy protection and security features, is becoming an important tool to solve these industry challenges. In the future, with continuous technological advancements, zero-knowledge proofs will play an even more critical role across various industries, building a stronger foundation for security and trust in the digital world.

Disclaimer: The content of this article is solely for industry opinion analysis and does not represent the official position of SDAO.