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ChatGPT can’t beat human smart contract auditors yet: OpenZeppelin’s Ethernaut challenges

While ChatGPT-4 can’t compete with human auditors yet, OpenZeppelin noted it was not optimized to do so, and AI models trained for this purpose would likely be more accurate.

While generative artificial intelligence (AI) is capable of doing a vast variety of tasks, OpenAI’s ChatGPT-4 is currently unable to audit smart contracts as effectively as human auditors, according to recent testing.

In an effort to determine whether AI tools could replace human auditors, blockchain security firm OpenZeppelin’s Mariko Wakabayashi and Felix Wegener pitted ChatGPT-4 against the firm’s Ethernaut security challenge

Although the AI model passed a majority of the levels, it struggled with newer ones introduced after its September 2021 training data cutoff date, as the plugin enabling web connectivity was not included in the test.

Ethernaut is a wargame played within the Ethereum Virtual Machine consisting of 28 smart contracts — or levels — to be hacked. In other words, levels are completed once the correct exploit is found.

According to testing from OpenZeppelin’s AI team, ChatGPT-4 was able to find the exploit and pass 20 of the 28 levels, but did need some additional prompting to help it solve some levels after the initial prompt: “Does the following smart contract contain a vulnerability?”

In response to questions from Cointelegraph, Wegener noted that OpenZeppelin expects its auditors to be able to complete all Ethernaut levels, as all capable authors should be able to.

While Wakabayashi and Wegener concluded that ChatGPT-4 is currently unable to replace human auditors, they highlighted that it can still be used as a tool to boost the efficiency of smart contract auditors and detect security vulnerabilities, noting:

“To the community of Web3 BUIDLers, we have a word of comfort — your job is safe! If you know what you are doing, AI can be leveraged to improve your efficiency.“

When asked whether a tool that increases the efficiency of human auditors would mean firms like OpenZeppelin would not need as many, Wegener told Cointelegraph that the total demand for audits exceeds the capacity to provide high-quality audits, and they expect the number of people employed as auditors in Web3 to continue growing.

Related: Satoshi Nak-AI-moto: Bitcoin's creator has become an AI chatbot

In a May 31 Twitter thread, Wakabayashi said that large language models (LLMs) like ChatGPT are not yet ready for smart contract security auditing, as it is a task that requires a considerable degree of precision, and LLMs are optimized to generate text and have human-like conversations.

However, Wakabayashi suggested that an AI model trained using tailored data and output goals could provide more reliable solutions than chatbots currently available to the public trained on large amounts of data.

AI Eye: 25K traders bet on ChatGPT’s stock picks, AI sucks at dice throws, and more

Bitcoin Technical Analysis: BTC Slips Below $60K Closing CME Gap

Here’s how to quickly spot a deepfake crypto scam — cybersecurity execs

The fast-paced nature of the crypto markets means investors are under massive pressure to quickly verify whether a video message is authentic or not.

Crypto investors have been urged to keep their eyes peeled for “deepfake” crypto scams to come, with the digital-doppelganger technology continuing to advance, making it harder for viewers to separate fact from fiction. 

David Schwed, the chief operating officer of blockchain security firm Halborn, told Cointelegraph that the crypto industry is more “susceptible” to deepfakes than ever because “time is of the essence in making decisions,” which results in less time to verify the veracity of a video.

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Deepfakes use deep learning artificial intelligence (AI) to create highly realistic digital content by manipulating and altering original media, such as swapping faces in videos, photos, and audio, according to OpenZeppelin technical writer Vlad Estoup.

Estoup noted that crypto scammers often use deepfake technology to creat fake videos of well-known personalities to execute scams.

An example of such a scam was a deepfake video of FTX’s former CEO in November, where scammers used old interview footage of Sam Bankman-Fried and a voice emulator to direct users to a malicious website promising to “double your cryptocurrency.”

Schwed said that the volatile nature of crypto causes people to panic and take a “better safe than sorry” approach, which can lead to them getting suckered into deepfake scams. He noted:

“If a video of CZ is released claiming withdrawals will be halted within the hour, are you going to immediately withdraw your funds, or spend hours trying to figure out if the message is real?”

However, Estoup believes that while deepfake technology is advancing at a rapid rate, it’s not yet “indistinguishable from reality.”

How to spot a deepfake: Watch the eyes

Schwed suggests one useful way to quickly spot a deepfake is to watch when the subject blinks their eyes. If it looks unnatural, there’s a good chance it’s a deepfake.

This is due to the fact that deepfakes are generated using image files sourced on the internet, where the subject will usually have their eyes open, explains Schwed. Thus, in a deepfake, the blinking of the subject’s eyes needs to be simulated.

Schwed said the best identifier of course is to ask questions that only the real individual can answer, such as “what restaurant did we meet at for lunch last week?”

Estoup said there is also AI software available that can detect deepfakes and suggests one should look out for big technological improvements in this area.

He also gave some age-old advice: “If it’s too good to be true, it probably is.”

Related: ‘Yikes!’ Elon Musk warns users against latest deepfake crypto scam

Last year, Binance’s chief communications officer, Patrick Hillman, revealed in an August blog post that a sophisticated scam was perpetrated using a deepfake of him.

Hillman noted that the team used previous news interviews and TV appearances over the years to create the deepfake and “fool several highly intelligent crypto members.”

He only became aware of this when he started to receive online messages thanking him for his time talking to project teams about potentially listing their assets on Binance.com.

Earlier this week, blockchain security firm SlowMist noted there were 303 blockchain security incidents in 2022, with 31.6% of them caused by phishing, rug pulls and other scams.

Bitcoin Technical Analysis: BTC Slips Below $60K Closing CME Gap

Compound cETH market bricked by update — 7-day wait on vote to fix it

The code bug has plagued the cETH market and has affected Compound’s front-end user face, but the CEO confirmed that “funds are not immediately at risk.”

Decentralized lending platform Compound has been plagued by a code bug in a recent governance proposal to update its price feeds. 

The code error has “temporarily frozen” the Compound ETH (cETH) market, causing cETH transactions to revert, but Compound Labs stated that despite the front end not working, “funds are not immediately at risk.”

Compound Labs announced on Aug. 31 that the code bug came from Proposal 117: Compound Oracle Upgrade v3, which was implemented a couple of hours ago to update the oracle contracts on the Compound protocol to a new version that uses Uniswap V3 instead of V2 for price feeds.

In response to the cETH market temporarily freezing, Compound Labs said it aimed to revert to the previous price feed via Proposal 119: Oracle Update. The new proposal was created less than one hour after Proposal 117 had been executed, however it now needs to go through  seven-day governance process before taking effect.

According to an update from Security Solutions Architect Michael Lewellen of OpenZeppelin, the code bug came from the “getUnderlyingPrice” function, which did not update the price of cETH tokens, which would return empty bytes and cause the call to be reverted.

Lewellen also reaffirmed that no funds are at risk:

“The primary issue right now is a temporary denial of service for the cETH market which will be resolved by the new governance proposal. No funds are at risk at this time. The rest of the cToken markets on Compound V2 and all of V3 remain functional.”

However, Lewellen added that “any users that deposited ETH and obtained cETH for opening borrow positions must be aware that they might get instantly liquidated whenever the fix proposal executes if by that time the price of ETH has dropped significantly.”

But the CEO of Compound Labs Robert Leshner also added that users can still repay any debt and add collateral to avoid liquidation.

Related: What is a smart contract security audit? A beginner's guide

Compound Labs noted the code bug came despite the oracle contract being audited from three separate smart contract auditing companies, with OpenZeppelin and ChainSecurity among the recent firms to have audited Compound’s smart contracts.

Proposal 117 itself didn’t appear to be a controversial one, with all 696,665 votes from 245 different wallet addresses in favor of the price feed upgrade. Crypto investment firm Polychain Capital cast the most votes (306,146) in favor of the proposal.

According to DeFi Llama, Compound is the third largest decentralized lending platform, with $2.67 billion total value locked (TVL). The news has not affected the Compound token, COMP, so far which is currently priced at $48.27.

Bitcoin Technical Analysis: BTC Slips Below $60K Closing CME Gap

NFT Marketplace Opensea Migrates to Seaport Protocol, Transition to Cut Network Fees by 35%

NFT Marketplace Opensea Migrates to Seaport Protocol, Transition to Cut Network Fees by 35%On Tuesday, the leading non-fungible token (NFT) marketplace in terms of all-time sales, Opensea, announced it is migrating to Seaport, an open source Web3 marketplace protocol. Opensea says the Seaport protocol migration from the Wyvern protocol will cut network fees by 35%, and users will no longer have to pay an account initialization fee. Opensea […]

Bitcoin Technical Analysis: BTC Slips Below $60K Closing CME Gap