According to the official announcement tweet, the Ethereum Trust Alliance is a ”global coalition of professional security organizations brought together to increase trust in the Ethereum ecosystem”.
— Ethereum Trust Alliance (@ethtrustorg) February 3, 2020
The Ethereum Trust Alliance (ETA) is basically a group of security companies dedicated to the blockchain. These companies are trying to create a security rating system for smart contracts.
According to the team of ETA, smart contracts are widely popular now but they lack some sort of indicator to show the level of security. ETA believes that a rating system is necessary even though there are automated analysis tools and even audit firms capable of analyzing smart contracts.
Scams In The Crypto Industry Are Still Growing
The cryptocurrency market is certainly quite prone to scams and fraud as well as hacks. ETA can certainly mitigate risk and it’s definitely welcomed.
If only we had these ratings during the ICO boom of 2017, we believe that many of us who were woefully uninformed about fundamental risk indicators would have had the information required to make better decisions.
According to recent statistics, millions of people fell for Ponzi scams in 2019 and around $4.3 billion worth of digital assets was stolen. Unfortunately, decentralization and trust-less environments do have their risks as any mistake can be deadly.