The Good Tech Companies - After Bybit’s $1.5B Blind Signing Fiasco, Human Wallet Steps Up with a Radical Security Fix

Episode Date: March 11, 2025

This story was originally published on HackerNoon at: https://hackernoon.com/after-bybits-$15b-blind-signing-fiasco-human-wallet-steps-up-with-a-radical-security-fix. Post-Bybit’s $1.5B hack, Human Wallet fights blind signing with a bold security fix. Join alpha testing now. Check more stories related to web3 at: https://hackernoon.com/c/web3. You can also check exclusive content about #bybit, #human-wallet, #blockchain, #dlt, #cryptocurrency, #human-wallet-news, #good-company, #cybersecurity, and more. This story was written by: @ishanpandey. Learn more about this writer by checking @ishanpandey's about page, and for more stories, please visit hackernoon.com. Post-Bybit’s $1.5B hack, Human Wallet fights blind signing with a bold security fix. Join alpha testing now.

This audio is presented by Hacker Noon, where anyone can learn anything about any technology. After Bybit's $1, 5B blind signing fiasco, human wallet steps up with a radical security fix, by Aishan Pandey. Hash hash a new tool promises to end a hidden danger that cost Bybit $1. 5 billion. Here's how it works. What if the next big crypto hack could be stopped not by tighter regulations or smarter coders but by simply showing users what they're agreeing to? That's the premise behind Human Wallet, a Web3 wallet from the Hollonym Foundation, which launched its public alpha testing today.

With a radical approach to transaction security, it's tackling a vulnerability exposed by the recent $1.5 billion buy-bid breach, one that's been hiding in plain sight, blind signing. https://www.youtube.com.watch?v="wbbkvawy1xm&embeddable="true"] The Bybit hack, the largest in crypto history, laid bare the risks of users approving transactions without fully understanding them. Blind signing, where complex transaction details are reduced to unreadable strings of code, left Bybit users exposed when hackers manipulated the platform's frontend. Human Wallet claims it can stop such attacks in their tracks, moving transaction previews from compromised websites to the tamper-proof screens of hardware wallets.

Asked crypto world watches, the question looms. Could this be the fix Web3 has been waiting for? A new approach to an OLD problem human wallet solution hinges on a blend of cutting-edge tech, two-party computation, two PC, trusted execution environments, Tees, AI-assisted transaction simulation, and hardware wallets. Unlike traditional setups where transaction details appear on a website or connected device, both prone to manipulation, this system displays human readable summaries directly on a hardware wallet. Think of

it as a final checkpoint. Before you sign, you see exactly what you're approving, in plain language, not hexadecimal gibberish. The process starts with AI simulating the transaction to break it down into clear terms. Then, two PCNTs, cryptographic tools that split and shield data, ensure no single point can be exploited. Add multi-signature support and two-factor authentication, 2FA, via hardware wallets, and you've got layers of defense. Verification happens through the decentralized human network, sidestepping the centralized weak spots that plague many systems.

The result? A setup that, in theory, would have thwarted the Bybit attack by keeping the compromised front-end out of the equation. To test it, the public can now download the Human Wallet Chrome extension, link a hardware wallet, and join the Alpha phase. "'Given the urgency of recent events, we've expedited internal testing to make this available now,' said Nanak Nihal Khalsa, co-founder and CTSO of Hallinim Foundation. He cautions, though, that it's still early days.

"'As an Alpha release, we encourage users to experiment within their security workflows rather than rely on it for major assets. The Bybit wake-up call the stakes couldn't be higher. In the Bybit breach, hackers exploited blindsigning to trick users into approving fraudulent transactions, siphoning off $1.5 billion, the front end, what users saw, was altered, while the underlying blockchain hummed along, oblivious. It's a stark reminder of Web3's double-edged sword. Decentralization offers freedom, but it also shifts responsibility ontozers who often lack the tools to protect themselves.

Human Wallet argues its hardware-based previews could've stopped this. By moving the critical, what am I signing? moment to a secure device, it cuts out the middleman, literally. If the front-end's hacked, the hardware wallet still shows the truth. Experts say it's a plausible claim. The Bybit attack relied on users not noticing discrepancies, something plain language previews might have flagged. How it stacks UP this isn't the first attempt to fix blind signing. Some wallets use command line verification or dedicated laptops, clunky solutions that sacrifice usability for safety. Others lean on centralized providers, introducing new

risks. Human Wallet's hybrid approach, combining decentralization with hardware security, aims for a middle ground. It's not foolproof. A compromised hardware wallet could still spell trouble, and the alpha phase will test real-world resilience. Boot it's a shift from the status quo, where users are often left guessing. The setup process is straightforward. Download the extension, create an account, and pair it with a hardware wallet for 2FA. Transactions appear in clear terms, and multi-signature options add a backup layer. If one key fails, another can step in. It's a nod to practicality, avoiding the tech-heavy barriers that deter mainstream adoption.

Beyond the tech, a broader mission human wallet isn't just a tool, it's part of Holonim Foundation's push to make Web3 more accessible. Built on the human, tech protocol suite, it reflects a philosophy of user empowerment. Previously called SILG, it's designed to ditch the tradeoff between simplicity and security, a pain point that's kept crypto on the fringes. Whether it succeeds will depend on how it holds up under scrutiny, especially as alpha testers poke at its defenses. The crypto community is already buzzing. The Bybit hack shook trust, and with losses piling up, $1.5 billion here, millions elsewhere,

there's appetite for change. Human Wallet's timing is no accident. Writing a wave of urgency tore think how we secure the decentralized web. Final thoughts. A step forward or a work in progress? Human Wallet's alpha launch is a bold statement. Blind signing doesn't have Toby Web 3's Achilles heel. By marrying hardware security with user-friendly design, it offers a glimpse of a safer crypto

future. One where users aren't left deciphering code or preying their frontend isn't lying. If it works as promised, the Bybit hack might have been a footnote, not a headline. But it's not a silver bullet. Alpha testing will reveal cracks, whether in the tech, the user experience, or the decentralized backbone. Crypto's history is littered with promising fixes that faltered under pressure. For now, human wallet is a compelling experiment, one that could nudge Web 3 toward maturity, or highlight how far it still has to go.

As testers dive in, the real verdict will come not from press releases, but from the blockchain itself. Don't forget to like and share the story. Tip Vested Interest Disclosure. This author is an independent contributor publishing via our business blogging program. Hacker Noon has reviewed the report for quality, but the claims herein belong to the author. Hashtag Dyor. Thank you for listening to this Hacker Noon story, read by Artificial Intelligence.

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