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Blockchain Security Startup Mamori Raises $5M to Use Machine Learning to Detect Exploits

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Blockchain Security Startup Mamori announced today has secured $5 million in seed funding led by Blockchain Capital for its platform that uses machine learning to detect and fix exploits.

The company said Velocity Capital and Web3.com also participated in the round, along with angel investors Grigore Rosu, Daniel Lubarov, Alex Watts, Bo Du, Shujia Liang, Micheal Heinrich and Antonio Viggiano.

The company uses machine learning algorithms to find paths through blockchain code to uncover flaws in smart contracts, which are self-executing computer programs that are triggered by certain conditions. These smart contracts are computer codes that can contain so-called “zero-day” exploits that are difficult for algorithms designed to detect known historical flaws to uncover.

Smart contracts are central to blockchain applications to operate token economies to execute trades, make loans, generate interest and dividends, allowing developers to create complex systems such as blockchain-based video games and more. The more complex a blockchain application becomes along with the smart contracts it is built upon, the greater the chance that a vulnerability could exist within the code.

Mamori said it uses “interdisciplinary technologies” to protect against “unknown unknowns” and detect these vulnerabilities before they become real problems in the code. The same machine learning algorithms can be applied to address scalability and automation challenges, the company said.

“Mamori tools help eliminate programming errors when learning contract specifications, semantics-based formal verification tools prove that the program is correct with respect to the specifications, so proof of correctness is [zero-knowledged] and published on the chain as verifiable evidence,” Mamori councilor Grigore Rosu said in a statement.

The company said it hopes this new machine learning-based method for addressing vulnerabilities and programming challenges in blockchain code will help developers create more secure and better optimized smart contracts.

“Increasing innovation around smart contract security and protection will be critical to the large-scale adoption of cryptocurrencies,” said Joshua Rivera, operating partner and general counsel at Blockchain Capital She said.

The number of blockchain security incidents during 2023 included over 700 exploits triggered by smart contract vulnerabilities, generating more than Losses of $2.4 billionBlockchain companies spend billions of dollars on audits and security teams testing their smart contracts before deployment, and they are still imperfect.

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