Ethereum Foundation publishes initial 1TS detailing strategy to address security issues.

The Ethereum Foundation has published the initial report in its most extensive security initiative to date, which outlines the significant risks Ethereum (ETH) must tackle to facilitate trillions in global on-chain value.

The inaugural Trillion Dollar Security (1TS) report details what individuals, institutions, and governments need to confidently allocate much larger amounts to the network. This report follows several similarly thorough initiatives undertaken by the foundation in recent weeks after a restructuring effort.

Drawing on comprehensive feedback from developers, users, and security experts, the report pinpoints vulnerabilities across six fundamental areas: user experience, smart contracts, infrastructure, consensus, incident response, and governance.

This report will act as a foundational guide for Ethereum’s forthcoming phase of security enhancements.

Vulnerabilities in the ecosystem

The report indicates that a significant portion of Ethereum’s security responsibility still rests on end users due to inadequate wallet user experience, blind signing, and inconsistent permission controls. These challenges continue to pose ongoing threats, while fragmented wallet standards impede safe usage.

Moreover, institutional users encounter additional challenges in managing keys, audit trails, and custom workflows, which are insufficiently supported by the existing infrastructure.

The report also emphasized that while smart contract security has improved, it still faces upgrade risks, access control failures, and low rates of formal verification adoption.

At the same time, reliance on centralized infrastructure, such as RPC providers, DNS, and cloud hosts, compromises Ethereum’s decentralization assurances. Layer-2 solutions introduce new complexities, while the risk of ISP-level censorship and DNS hijacking remains insufficiently recognized.

At the protocol level, the report observed that validator centralization and ambiguous recovery procedures continue to raise concerns regarding Ethereum’s resilience in edge-case failures.

It also identified a long-term shift to quantum-resistant cryptography as a crucial measure.

Coordinating a secure future

The report states that Ethereum’s capacity to respond to threats is constrained by deficiencies in monitoring, coordination, and recovery.

Responders frequently experience delays when attempting to reach compromised teams or escalate issues across platforms. Without clear communication channels or pre-established contacts, valuable time is lost during incidents.

The report also pointed out a lack of effective monitoring tools for early detection of on-chain and off-chain threats. In many instances, security breaches remain unnoticed until after damage has occurred.

Insurance coverage is still limited. Unlike conventional financial systems, Ethereum applications have restricted access to insurance, leaving users and organizations vulnerable to total loss in the event of an exploit.

On the governance front, the report cautioned that Ethereum’s social layer, comprising its network of developers, institutions, and cultural norms, is itself a potential target for attack. It highlighted risks from stake centralization, regulatory pressure, and organizational influence that could divert Ethereum’s direction away from neutrality.

The absence of established processes for “social slashing” was also noted as a significant gap in cases of validator collusion or protocol capture.

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