Security SoulBound Tokens: On-Chain Trust for Smart Contracts

Table of Contents

1. Challenges in the Smart Contract Ecosystem
2. The Solution: Security SoulBound Tokens
3. Background: Callisto Network Security Department Expertise
4. The Pressing Need for Security SoulBound Tokens
5. Security SoulBound Tokens: Definition and Functionality
6. Difference between NFTs and SSTs
7. Three-Level Certification
8. Technical Details of Security SoulBound Tokens
9. Concluding Thoughts

Challenges in the Smart Contract Ecosystem

In a world where blockchain and cryptocurrencies are becoming increasingly popular, smart contracts have become essential to the various decentralized applications and tokens, the latter representing the vast majority of tradeable cryptocurrencies.

However, as this technology is being adopted, it has become increasingly difficult for users and investors to discern between secure, audited contracts and those not. In fact, in the first half of 2023 alone, over $650 million worth of crypto assets were stolen. Add to this the challenge of making audit reports easily accessible and understandable to the average user, and you have an environment prone to distrust and skepticism.

The Solution: Security SoulBound Tokens

The Callisto Network Security Department is introducing the Security SoulBound Token (SST) to address this urgent issue. The SST tokens serve as an on-chain “stamp of approval” granted to smart contracts that have successfully passed our rigorous auditing process. 

By providing an easily identifiable and tamper-proof sign of a contract’s security status right on the blockchain, SSTs aim to build trust and add unprecedented transparency to the smart contracts industry.

“Security SoulBound Tokens (SST) act as an on-chain certification system, establishing a level of trust and transparency that has been notably absent in the smart contracts security industry. By providing a visible, color-coded security rating directly on the blockchain, SSTs make it simpler for users to understand the security level of a smart contract, enabling them to engage with confidence.” Yuriy Kharytoshyn – Creator of the Security SoulBound Token.

Background: Callisto Network Security Department Expertise

Since its launch in 2018, the Callisto Network Security Department has been a pioneering force in smart contract security, making substantial contributions to the cryptocurrency space. With a track record of over 335 smart contract audits for leading crypto projects, including USDT and Doge Token, the department has established itself as a trusted entity in the field. Importantly, none of the smart contracts audited by the Callisto Network Security Department have ever been compromised.

The Pressing Need for Security SoulBound Tokens

While auditing is undoubtedly a critical first step in securing a smart contract, the reality is that the challenge doesn’t end there. The audit reports, often detailed and technical, may not be easily accessible or understandable to the average user or investor.  

How can we bridge this gap? How can we make these technical audit reports understandable to anyone using smart contracts? This forms the problem that SST aims to solve! 

With a mind-blowing $303 Million loss in crypto hacks and exploits in the only month of July 2023, it’s evident that the current mechanisms for demonstrating a contract’s security are inadequate.

This is where SST comes in, changing the game.

Security SoulBound Tokens: Definition and Functionality

The Security SoulBound Token (SST) is a on-chain marker designed to embed trust in smart contracts. It serves as a digital stamp of approval, added directly to smart contracts that have successfully undergone an audit by the Callisto Network Security Department. 

Notably, the SST provides key information about the audit score and links to the full audit report right within the blockchain itself. This feature is a pivotal tool for any user to quickly evaluate the security level of a smart contract without needing to sift through technical details.

Difference between NFTs and SSTs

Although they are similar to non-fungible tokens (NFTs) due to their unique, indivisible nature, SSTs serve a different purpose. NFTs are generally transferable and often represent ownership of digital or physical assets. SSTs, on the other hand, are tied to the contract to which they are attached; they are not transferable and exist only to indicate the smart contract’s security level. This makes SSTs entirely focused on improving transparency and trust in the smart contract ecosystem.

Three-Level Certification

SST offers a three-tiered certification system to make the security level of smart contracts instantly recognizable. Each class is visually distinct and color-coded to provide an immediate understanding of the smart contract’s security status. Below are the specifics:

• High-Security Certifications
  • Color: Green.
  • Implication: The contract is highly secure, with minimal to no vulnerabilities detected.
  • Decentralization Grades: Decentralized/Semi-Centralized/Centralized.

• Medium-Security Certifications
  • Color: Yellow.
  • Implication: The smart contract has passed the audit, but some areas could benefit from further optimization. It is considered safe, but with reserves, often linked to the owner’s privileges.
  • Note: Users should read the full audit report for detailed insights.
  • Decentralization Grades: Decentralized/Semi-Centralized/Centralized.

• Low-Security Certifications
  • Color: Red.
  • Implication: The smart contract has undergone an audit and has significant vulnerabilities or areas requiring immediate attention. A list of critical recommendations for improvement often accompanies this rating.
  • Note: It is advised to proceed with extreme caution and await updates or fixes before interacting with such contracts.
  • Decentralization Grades: Decentralized/Semi-Centralized/Centralized.

 

Each contract will display both a color-coded security rating and a label for decentralization, making it easier for users to make informed decisions when interacting with smart contracts.

Technical Details of Security SoulBound Tokens

The Security SoulBound Token (SST) serves as a decentralized certificate that is not just a static label but a dynamic, updatable record. Below are the core elements that the SST will include:

• Auditing Company: The name of the auditing company (Callisto Security Department in this case) will be clearly mentioned to establish trust and traceability.

• Audit Score: The score or grade given to the smart contract will be included in the SST, helping users gauge the security level at a glance.

• Audit Report Links:

• • Website: A direct link to the audit report on the Callisto Network website will be provided for easy access to the detailed analysis.

• • IPFS: For those who value decentralization, a link to the report stored on IPFS (InterPlanetary File System) will also be available.

• Customization and Metadata: While the core details in SST are standardized, we provide the flexibility to add custom fields. For example, the smart contract owner can insert specific information relevant to their project in a customizable field named “CustomAttribute,” allowing for various metadata types to be included. This customization option enhances the ability of SSTs to adapt to diverse security requirements and considerations.

• Editable Records: To keep pace with updates or re-audits, SST records can be edited by the Callisto Network Security Department. This ensures that the information remains current and reliable.

Concluding Thoughts

Security SoulBound Tokens (SST) represent an evolution in smart contract security. By leveraging the credibility of the Callisto Network Security Department and offering an easily accessible and user-friendly certification system, Security SoulBound Token sets a new standard for blockchain security.