Investing in Forta
One of the main forces that has driven the rise of crypto networks is composability –– the ability to remix and recombine software components, without needing authorization or approval from a gatekeeper. By removing walled gardens and empowering developers to build, we’ve seen programmable trust, scarcity, and value emerge as new building blocks, enabling the same recombination and experimentation that make open-source software so powerful.
As this open economy grows, new challenges are emerging for users and developers, which talented teams are jumping in to solve. Complexity scales exponentially, and surface areas for attack increase. As a result, security is becoming increasingly critical. That’s where OpenZeppelin, the leader in blockchain security and risk management since 2015, saw the need for Forta, a web3 approach they are spinning out to secure the open economy.
Forta is an enterprise-grade runtime security platform whose goal is to detect threats and other system-critical issues as quickly as possible. Given timely and relevant information about the security and stability of their systems, users will have a much better chance of neutralizing threats and preventing or minimizing loss of funds.
The product is a decentralized network of independent node operators who scan all transactions and block-by-block state changes for outlier transactions and threats to smart contracts. When an issue is detected, node operators notify subscribers of potential risks, which enables them to take automated defensive action. Forta aims to provide the comprehensive and scalable security solutions that we know are necessary to unlock the full institutional and individual participation in the blockchain ecosystem.
Reimagining cybersecurity solutions for a decentralized world is a necessary step to allow technological development to proceed unfettered. Currently, developers are forced to build homegrown solutions to security ops and smart contract audits are done as a one-time security measure. With Forta, developers can build off-the-shelf, generalized security tooling for the first time, allowing teams to ship faster with lower risk. Forta will also fill a void in runtime security, mitigating damage in real time.
Over the long term, Forta has the potential to be a fundamental public utility that serves the entire crypto space, securing DeFi, NFT, and DAO ecosystems as well. That’s why we’re thrilled to lead the latest round of funding in Forta and participate in this community. Securing blockchains and digital assets is a critical part of driving mainstream crypto adoption, and OpenZeppelin and the rest of the quickly growing Forta ecosystem combine the right experience in crypto and security to deliver a new kind of solution for a truly open web.
***
The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. In addition, this content may include third-party advertisements; a16z has not reviewed such advertisements and does not endorse any advertising content contained therein.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments for which the issuer has not provided permission for a16z to disclose publicly as well as unannounced investments in publicly traded digital assets) is available at https://a16z.com/investments/.
Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information.