What is Forta
Forta is a decentralized monitoring network to detect threats and anomalies on DeFi, NFT, governance, bridges and other Web3 systems in real-time.
Underlying Forta is a decentralized network of independent node operators that scan all transactions and block-by-block state changes for outlier transactions and threats. When an issue is detected, node operators send alerts to subscribers of potential risks, which enables them to take action.
For any questions or feedback you may have, please go to the Forta Discord server.
The future is multi-chain. That is why Forta continues to expand into the emerging landscape of new L1s and L2s, bringing runtime monitoring and anomaly detection to Ethereum, Avalanche, Polygon, BNB Chain, Fantom, Arbitrum, and Optimism.
As the Web3 economy grows in value and complexity, security has become increasingly critical. More than $1 billion was lost in the first quarter of 2022 due to hacks and exploits, some of which have only been discovered several days after the attack happened. The need for real-time security and operational monitoring has become clear, allowing protocols and investors to react quickly to neutralize threats and prevent or minimize loss of funds.
However, the rapid speed at which the Web3 industry develops makes it hard for a centralized entity to watch it all. That’s where Forta comes in.
How to get started
You can develop and deploy your own detection bots on Forta using the SDK. There are many templates and examples you can work from. There are also a growing number of development teams who you can hire to develop Forta bots for your project (visit the Bot Development Marketplace or contact the Forta Foundation at [email protected] for more information).
If you are an independent dev that wants to develop detection bots, you can visit Forta’s Bot Development Marketplace to discover RFPs, apply for Grants or participate in Forta Development Contests, which are announced in the Forta Discord.
The Forta Network has two main components – detection bots and scan nodes.
Detection bots refer to a set of code scripts within a Docker container that process some blockchain data (i.e. a block or transaction) and detect specific threat conditions (e.g. whether a flash loan attack occured, or whether a particular account balance fell below some threshold). Bots emit alerts for their findings. Bots are executed by scan nodes. To learn more about bots, see our FAQ section.
A scan node is a specific type of Forta node that executes detection bots for every transaction and every new block on a specific blockchain network. The scan node manages and coordinates bots (e.g. by instantiating and running bots, and restarting bots that become unresponsive). The scan node ferries blockchain data to bots to process the transaction/block. To learn more about scan nodes, see our FAQ section.
Threat detection monitoring
Threat detection monitoring provides alerts on transactions and events that may indicate malicious activity. One of the main challenges in threat monitoring is determining “what to look for” in transactions. Unfortunately, there are many examples of smart contract exploits from the past few years, so there is a large body of ideas to draw from.
For example, while the DeFi community is well aware of the anonymity that Tornado Cash mixers provide, the vast majority of DeFi market transactions do not involve Tornado Cash contracts. However, attackers have an incentive to conceal the source and/or destination of funds associated with an attack. Therefore, a useful monitoring pattern may be to identify EOAs performing transactions with a protocol and then check if those EOAs have performed withdrawals from any Tornado Cash contracts within the recent past (e.g. the previous hour, day, weeks, etc.).
How can Forta be used to prevent smart contract exploits?
Certain categories of exploits, such as phishing, governance attacks, and multi-chain or bridge attacks, typically require the use of multiple transactions over multiple blocks that offer the opportunity for early detection followed by prevention before the exploit occurs or mitigation before the exploit is complete.
Forta community members have already published multiple examples of how Forta can be used to detect and prevent or mitigate such exploits, like the Microsoft ice phishing bot or the Sleep Minting bot for NFTs. The ability to respond to Forta alerts also relies on the readiness of project teams and Forta community members have begun to work with organizations to put together emergency response plans.
Performing on-chain actions from within a Forta detection bot is not advised, given the public nature of the Forta detection bot code and any keys it may use.
Examples of other smart contract exploits that can also be mitigated by Forta
Other categories of exploits, such as those involving oracle or collateral manipulations, can also be detected by Forta, however prevention may be limited by the fact that such exploits often involve the use of flashloans or other techniques that allow them to occur in the context of a single block which itself may be privately mined. For this category of exploit, fast detection from Forta may still prove useful to mitigate attacks or prevent similar attacks on other chains or protocols.
The Forta community is growing to include even more security researchers, leading organizations, L1 and L2 providers, and other concerned parties, who may use Forta to investigate and develop new techniques and approaches that might lead to prevention against market manipulations and zero-block vulnerabilities in the future. Visit the Forum or Discord and join the discussion today.
Operational (“performance”) monitoring checks that your protocol is functioning as expected, within some predetermined bounds. These types of checks are beneficial for the protocol’s community, as they provide some assurance of the overall health of the protocol while still highlighting some of the more extraordinary transactions that occur. Beyond the financial operation, this monitoring may provide information about when implementation contracts are upgraded, admin addresses change, or critical administrative smart contract methods are called. This type of monitoring would provide alerts that may be appropriate for display in a dashboard like Splunk, DataDog, etc.
For example, the total liquidity of pools may fluctuate by ±1% over the course of a day, so any single transaction that affects the liquidity by more than that should trigger an alert. Alternatively, because some pools may have relatively little liquidity, it may make sense to use a fixed value threshold (denominated in USDC, ETH, USD, etc.) rather than a percentage.
Other use cases
Since Forta is open for anyone to write and deploy a detection bot, the applications for Forta are limitless. Forta simply acts as the real-time monitoring layer for any use case you can imagine. For example, users might incorporate real-time Forta data as an input in algorithmic asset trading strategies to beat the market or create an automated insurance protocol that identifies a covered loss in real-time and pays out automatically. If you are interested in building on top of Forta, the community would love to hear about it in the Forum or Discord.
There are multiple options for users that prefer private monitoring. Forta bots are not required to publish their source code, and the bot code in the deployed container can be obfuscated in a variety of ways, as described in the Forta docs. Alert findings output from bots can be coded or encrypted. For users that prefer to deploy bots to a private environment without any public exposure, or that simply want redundancy for their bots on the public network, Forta also can support these users running private nodes, which remain completely independent of the public Forta network and do not participate in public detection bot assignment or public broadcast of detection bot findings.
At the moment, no fees are required for subscribing to receive Forta alerts or for the execution of bots, although Forta encourages projects to fund experienced developers to create quality Forta detection bots for their specific use cases.
Staking is required for scan nodes to be discoverable in the network and emit alerts, and for Forta detection bots to be picked up by scan nodes.
Bots are executed in individual containers and are not able to affect scan nodes or other bots. Detection bots are further restricted in a variety of ways by scan nodes during execution, and bot output can be validated by users and community members, and malicious, redundant, or inaccurate detection bots are slashed and disabled.
Scan nodes must produce proof of scan for every block, which provides the ability for community monitoring. Malicious or inaccurate scan nodes can be slashed and disabled.
The Forta smart contracts, node software, and other components of the network receive regular security review and the reports will be made public.Learn more about it here.
How does Forta ensure reliable monitoring?
Reliability on Forta is solved through detection bot redundancy and the monitoring and enforcement of scan node service levels by the community. On the public network, Forta detection bots are assigned to multiple scan nodes with periodic re-assignment. Scan nodes are required to provide a stake and must produce a proof of scan for every block. Scan nodes are monitored for reliability and are slashed for failure to meet the community-established service levels.
How are Forta alerts and findings validated?
Forta scan nodes gather findings from detection bots for each block and then store a proof of scan on IPFS and broadcast the finding details to the Forta analyzer node. Users can obtain the detailed information from the Forta analyzer node via the public API, which can be validated against the proof of scan data on IPFS. The analyzer node performs data indexing and may provide additional analysis.
The Bot Registry refers to a smart contract (currently deployed on the Polygon public mainnet) that records the existence of all detection bots. Developers publish their bot manifests to this registry, and scan nodes listen for events from this contract to know how to manage the bots they are running.
A bot manifest refers to a signed JSON document that describes the contents of a bot container. Specifically, it provides information like the bot version as well as an IPFS reference to the bot container image. Manifests are stored on the IPFS network, with their IPFS references stored in the Bot Registry.
Disco is an open-source, decentralized and distributed container registry. This registry is used to store and distribute bot container images. Scan nodes request bot images from a Disco repository.