Bug bounties are paid to expect security flaws to be discovered and disclosed to the software's owner before a malicious actor may exploit them. Bug bounties are frequently granted by cryptocurrency companies such as protocols, exchanges, and wallet providers. Bounty schemes might be viewed as friendly hacker competitions. The schemes are accessible to the public, and the firm providing the bug bounty is (theoretically) able to patch any disclosed vulnerabilities before the malicious actors discover them. In most circumstances, bug bounties are awarded based on the severity of the detected vulnerability.
Individual bounties can be quite modest in value, and it is normal for firms to pay around $100 as a prize for discovering a low-severity vulnerability. Critical vulnerabilities, on the other hand, may occasionally earn rewards of $10,000 or more. Some hackers make a lot of money detecting flaws. Guido Vranken, a Dutch researcher, discovered 12 flaws in a week and was compensated $120,000 by EOS. Bug bounties are viewed as a supplemental security activity by software owners to be employed in addition to other proactive efforts.
Before launching a product, the most critical task for developers is to write safe code and minimise vulnerabilities. However, even the most vigilant coders may always miss flaws, some of which may represent security problems. As a result, bug bounties serve as a crucial second line of defence for software owners and consumers against malicious actors.
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