BonkBot Introduces Non-Custodial Model with New Features for User Safety

Key Insights:

• BonkBot transitions to a non-custodial model, giving users full control of assets for enhanced security and privacy.
• New security features include two-factor authentication, private key exports, and token whitelisting for safer crypto transactions.
• BonkBot’s Pre-TX verification and future Face ID updates offer additional protection against unauthorized transactions and platform breaches.

BonkBot, a widely used crypto trading bot on Telegram, is making significant changes to its platform by transitioning to a non-custodial model. This shift aims to enhance security by giving users full control over their assets, addressing long-standing concerns about vulnerabilities in custodial systems. The change will incorporate Pre-TX protection, a security feature designed to prevent unauthorized access by verifying transactions before they are processed.

BonkBot Shifts to Non-Custodial Model for Better User Control

BonkBot’s upcoming move to a non-custodial model marks a key change in how the bot operates. In this new structure, users maintain complete control over their private keys and assets, ensuring that no third party—including BonkBot—can freeze or access user funds. This model addresses security concerns commonly associated with custodial setups, where private keys are stored on the provider’s backend, making them vulnerable to breaches.

The developers recently took to X (formerly Twitter) to confirm the transition, emphasizing the increased security that comes with user-controlled assets. They also introduced several new security features, such as two-factor authentication (2FA) for SOL withdrawals, private key exports, and optional token whitelisting. 

🔒 BONKBOT NEXT-GEN SECURITY UPGRADE 🔒

after 9 months of R&D, this is our biggest innovation yet.

TLDR:
– BONKbot is going NON-CUSTODIAL
– 2FA protection via miniapp, Passkeys/Face ID next
– pre-tx protection even if Raydium, Jupiter etc hacked
– <0.5ms tx verification with… pic.twitter.com/Fq9K07zWKs

— BONKbot (@bonkbot_io) October 9, 2024

The addition of these features allows users to have multiple layers of protection, reducing the chances of unauthorized transactions. Furthermore, future updates will include advanced security options like Face ID and passkey authentication.

Addressing Security Concerns of Custodial Models

Telegram-based trading bots have often been criticized for their custodial structure, where sensitive user information, such as private keys, is held by the provider. This centralization presents a significant risk, as a security breach could give hackers complete control over a user’s assets. BonkBot’s transition to a non-custodial system is intended to eliminate this vulnerability by ensuring that private keys remain solely in the hands of the users.

As part of this transition, BonkBot is implementing Pre-TX verification, an additional layer of security that ensures each transaction’s integrity before it is processed. This verification uses WebAssembly (WASM) modules, which act as safeguards, validating each transaction and preventing unauthorized access to user funds. This system helps protect users from potential platform vulnerabilities while maintaining the security of their assets.

BonkBot’s developers stated, “This shift prioritizes user safety by putting them in full control of their assets,” emphasizing that only the user can conduct transactions, offering a significant improvement over traditional custodial setups.

Simplified Seed Phrase Management and User Responsibility

In addition to enhancing security, BonkBot has introduced a more streamlined system for managing seed phrases. Previously, users needed to handle multiple private keys for different wallets, which could be cumbersome. Under the new system, one seed phrase will allow users to access multiple wallets, making it easier to manage their crypto holdings while maintaining security.

Despite these improvements, BonkBot urges users to take personal responsibility for safeguarding their seed phrases. If a user loses or exposes their seed phrase, BonkBot cannot recover the assets associated with the account. “It’s crucial for users to keep their seed phrases safe, as this is beyond BonkBot’s scope of protection,” the team warned, highlighting the importance of user diligence in managing their keys.

Future Security Enhancements and Market Impact

BonkBot plans to introduce additional security measures to further protect users. These include Face ID and passkey authentication, which will add more layers of security for accessing accounts and conducting transactions. 

Additionally, BonkBot’s architecture ensures that no human—whether BonkBot employees, cloud providers, or third parties—can access a user’s private keys, ensuring that only the user can approve transactions.

The bot’s “intent-based” wallet design guarantees that every transaction reflects the user’s original intention, offering a level of security similar to hardware wallets but in a cloud-based format. This approach minimizes the risks posed by potential smart contract vulnerabilities, ensuring that users’ assets remain secure.

Despite the announcement of these enhancements, the price of BONK, the token associated with BonkBot, saw a slight decline. Over the past 24 hours, BONK dropped by 4%, currently trading at $0.00002006. This indicates that the market has yet to fully respond to the news of BonkBot’s transition to a non-custodial model.