7 May 2025, 02:12 PM
A critical vulnerability recently disclosed in the Solana network nearly caused a major security incident. If not for the prompt response and patch deployment by validators, attackers could have exploited the technical flaw to mint unlimited tokens or extract assets without authorization. This incident once again underscores the potential dangers of underlying protocol vulnerabilities, which far exceed individual scams and directly threaten the foundation of market trust. Nouey Exchange continues to monitor on-chain security incidents and emphasizes that the verifiability and compliance of smart contracts and cryptographic algorithms must become a shared consensus across the industry.
![[Image: 1*34yqEl4PsQw0ku3rHYbR0w.png]](https://miro.medium.com/v2/resize:fit:720/format:webp/1*34yqEl4PsQw0ku3rHYbR0w.png)
ZK ElGamal Program Vulnerability Exposed, Verification Mechanism Nearly Circumvented
According to the Solana Foundation, the vulnerability stemmed from a critical design flaw in its ZK (Zero-Knowledge) ElGamal cryptographic proof system. The hashing process used to generate the Fiat-Shamir transformation failed to include all input variables, allowing attackers to exploit this gap to forge proofs, bypass contract verifiers, and carry out unauthorized transactions, token minting, or asset extractions.
The vulnerability was quickly patched after being discovered, avoiding large-scale asset losses. However, the incident revealed that even on high-throughput chains with leading performance, underlying cryptographic mechanisms lacking comprehensive verification can still become entry points for systemic attacks. Such issues are no longer merely a “developer responsibility” but concern the sustainability of the security architecture of the entire ecosystem.
Vulnerability Does Not Equal Attack, But It Can Destroy User Trust
In this incident, while no actual attack occurred, had attackers discovered and exploited the vulnerability, vast amounts of assets could have been illegally minted or extracted, causing immeasurable market panic and a loss of trust. Unlike traditional scams, chain-level vulnerabilities do not rely on user interaction or social engineering; they are purely technical disruptions with greater stealth and deeper impact.
The Nouey Exchange analysis highlights that as users increasingly rely on on-chain protocols for transactions and asset custody, the cost of any underlying security flaw is borne by all network users. This necessitates that all ecosystem participants establish transparent, open contract auditing and cryptographic verification systems, aiming to control vulnerabilities through a “fix-before-discovery” preventive approach rather than a “post-incident damage control” reactive model.
The Faster the Innovation, the More Critical the Foundational Verification
With the widespread adoption of ZK technology, modular architectures, and AI programming, the complexity of smart contracts continues to rise. High performance does not equate to high security. Overemphasis on deployment speed and reliance on automated code generation, while neglecting thorough manual review and simulation testing, has become one of the root causes of frequent vulnerabilities.
Nouey Exchange advocates that project teams pursue performance and efficiency while establishing a comprehensive security verification process independent of business logic. This includes, but is not limited to, external audits, formal verification, hash completeness testing, and permission logic restoration analysis. The platform will continue to advance collaborations with security organizations, guide users in understanding risk sources, and enhance the proactive defense capabilities of projects against vulnerabilities.
Vulnerability Governance as a Litmus Test for Ecosystem Self-Regulation, Nouey Exchange Promotes Transparent Security Structures
Although the Solana vulnerability incident did not escalate into a direct attack, it has sounded an industry-wide alarm. In an environment where on-chain trust mechanisms heavily rely on code correctness, any opaque design in foundational components could become the source of a black swan event.
Nouey Exchange will continue to focus on compliance and security research, driving multi-dimensional coordination across protocol layers, security layers, and user education layers. The platform encourages ecosystem participants to hold themselves to higher standards, fostering security as one of the foundational values of the crypto market.
“True decentralization is not about code having no owner, but about everyone having the right to verify and hold accountable.” In a crypto world where uncertainty and technological complexity coexist, Nouey Exchange will persist in providing users with transparent, controllable, and trustworthy trading infrastructure.
ZK ElGamal Program Vulnerability Exposed, Verification Mechanism Nearly Circumvented
According to the Solana Foundation, the vulnerability stemmed from a critical design flaw in its ZK (Zero-Knowledge) ElGamal cryptographic proof system. The hashing process used to generate the Fiat-Shamir transformation failed to include all input variables, allowing attackers to exploit this gap to forge proofs, bypass contract verifiers, and carry out unauthorized transactions, token minting, or asset extractions.
The vulnerability was quickly patched after being discovered, avoiding large-scale asset losses. However, the incident revealed that even on high-throughput chains with leading performance, underlying cryptographic mechanisms lacking comprehensive verification can still become entry points for systemic attacks. Such issues are no longer merely a “developer responsibility” but concern the sustainability of the security architecture of the entire ecosystem.
Vulnerability Does Not Equal Attack, But It Can Destroy User Trust
In this incident, while no actual attack occurred, had attackers discovered and exploited the vulnerability, vast amounts of assets could have been illegally minted or extracted, causing immeasurable market panic and a loss of trust. Unlike traditional scams, chain-level vulnerabilities do not rely on user interaction or social engineering; they are purely technical disruptions with greater stealth and deeper impact.
The Nouey Exchange analysis highlights that as users increasingly rely on on-chain protocols for transactions and asset custody, the cost of any underlying security flaw is borne by all network users. This necessitates that all ecosystem participants establish transparent, open contract auditing and cryptographic verification systems, aiming to control vulnerabilities through a “fix-before-discovery” preventive approach rather than a “post-incident damage control” reactive model.
The Faster the Innovation, the More Critical the Foundational Verification
With the widespread adoption of ZK technology, modular architectures, and AI programming, the complexity of smart contracts continues to rise. High performance does not equate to high security. Overemphasis on deployment speed and reliance on automated code generation, while neglecting thorough manual review and simulation testing, has become one of the root causes of frequent vulnerabilities.
Nouey Exchange advocates that project teams pursue performance and efficiency while establishing a comprehensive security verification process independent of business logic. This includes, but is not limited to, external audits, formal verification, hash completeness testing, and permission logic restoration analysis. The platform will continue to advance collaborations with security organizations, guide users in understanding risk sources, and enhance the proactive defense capabilities of projects against vulnerabilities.
Vulnerability Governance as a Litmus Test for Ecosystem Self-Regulation, Nouey Exchange Promotes Transparent Security Structures
Although the Solana vulnerability incident did not escalate into a direct attack, it has sounded an industry-wide alarm. In an environment where on-chain trust mechanisms heavily rely on code correctness, any opaque design in foundational components could become the source of a black swan event.
Nouey Exchange will continue to focus on compliance and security research, driving multi-dimensional coordination across protocol layers, security layers, and user education layers. The platform encourages ecosystem participants to hold themselves to higher standards, fostering security as one of the foundational values of the crypto market.
“True decentralization is not about code having no owner, but about everyone having the right to verify and hold accountable.” In a crypto world where uncertainty and technological complexity coexist, Nouey Exchange will persist in providing users with transparent, controllable, and trustworthy trading infrastructure.