Verifiable Builds Could Have Prevented the ByBit Hack

• Web3 security must prioritize front-end integrity, not just smart contract safety.
• Decentralized verification methods can reduce reliance on centralized deployment pipelines.
• Supply chain attacks pose a growing threat to both Web3 and traditional cybersecurity.

The crypto world was recently rocked by yet another high-profile exploit. This time, the target was ByBit, the world’s second-largest centralized crypto exchange.

At first, it seemed that ByBit’s security had been breached, with hackers siphoning away approximately $1.5 billion in digital assets. However, as new details emerged, it became clear that the real vulnerability lay elsewhere: a compromised Gnosis SAFE server.

ByBit Breach

The Bybit breach saw attackers spoofing the SAFE front-end UI, tricking users into interacting with a malicious interface.

In an industry built on decentralization and trust minimization, this kind of exploit exposes a major weakness: the reliance on centralized build and deployment pipelines.

The SAFE exploit serves as a cutting reminder that Web3 is only as secure as its weakest link. If users cannot verify that the interface they interact with is genuine, decentralization is meaningless. Fortunately, there’s good news for Web3.

A solution exists and could be implemented immediately to stop a repeat of the ByBit hack from ever happening again: verifiable reproducible builds.

Understanding Verifiable, Reproducible Builds

At its core, a reproducible build ensures that when source code is compiled, it always produces the same binary output. This guarantees that the software users are interacting with hasn’t been altered or tampered with by a third party somewhere in the deployment pipeline.

Why does this matter? Because one of the most effective ways to compromise a blockchain application is not by attacking its smart contracts, but by injecting malicious code into the front-end or other off-chain components.

The SAFE exploit is a textbook example of a supply chain attack. The hackers didn’t need to breach smart contracts or manipulate ByBit’s systems directly.

Instead, they injected malicious code into the front-end interface, deceiving users into thinking they were engaging with a trusted platform.

Had reproducible builds been in place, the discrepancy between the official source code and the deployed front-end could, and would have been detected.

Preventing Supply Chain Attacks in Web3

For Web3 to achieve true security, it requires more than just reproducible builds. This is where blockchain technology plays a crucial role.

Imagine a system where every software build generates binaries and resources in a verifiable way, with their fingerprints (or checksums) stored on-chain.

Instead of running such builds on cloud servers or computers that are prone to security breaches, they can be executed on dedicated blockchain co-processors or decentralized computational oracles.

When users interact with the application on the browser, with the help of a simple plugin or browser feature, they can compare the checksum of the front-end resources they are loading with their on-chain records.

If they match, the build interface is authentic. If not, something is wrong.

By implementing trustless verification through blockchain-based reproducible builds, Web3 can significantly strengthen its security and protect users from supply chain attacks that exploit vulnerabilities in centralized deployment pipelines.

Strengthening Cybersecurity Across the Internet

The benefits of verifiable, reproducible builds built on blockchain technology extend far beyond Web3, presenting a powerful use case for traditional Web2 applications as well.

One of the most devastating examples of a supply chain attack in the Web2 world was the SolarWinds breach in 2020.

Hackers compromised SolarWinds’ software development pipeline and inserted a backdoor into an update of their Orion software, which was widely used by government agencies and Fortune 500 companies.

Once deployed, this malicious update allowed attackers to gain unauthorized access to sensitive networks.

How could verifiable reproducible builds have prevented this? If SolarWinds had implemented this approach, they would have been able to deliver binaries to their customers that provably matched the intended source code.

By storing the hashes of verified builds on a blockchain, customers could independently verify the authenticity of the software updates they were installing.

Any discrepancy between the on-chain verification hash and the actual deployed software would have immediately raised red flags, preventing the malicious update from spreading undetected.

This highlights the potential for verifiable reproducible builds to strengthen cybersecurity across various industries and protect critical infrastructure from sophisticated supply chain attacks.

Therefore, just as verifiable reproducible builds could have stopped the SAFE exploit before it tricked users, they could have protected SolarWinds customers from installing compromised software.

Prioritizing Front-End Security in Web3

The lesson is clear: trust in centralized deployment pipelines is a vulnerability, and trustless verification mechanisms like verifiable reproducible builds offer one solution.

By extending these trustless verification principles beyond Web3, we can create a more secure internet ecosystem where dApps and their users can confidently interact, knowing that the integrity has been assured.