Charles Hoskinson, founder of Cardano, announced a $1 million challenge to hack the newly launched Lace Paper Wallet during his keynote speech at Rare Evo 2024.

The bounty program invites hackers to identify vulnerabilities in the wallet's design before they can be exploited maliciously.

The announcement led to an immediate surge in Cardano's ADA token price, reaching approximately $0.3354, indicating increased investor confidence.

The Lace Paper Wallet was introduced by Input Output Global (IOG) at the Rare Evo 2024 event.

The private key is encrypted using PGP (Pretty Good Privacy) to protect against common risks associated with paper wallets.

The Lace Paper Wallet is designed for user-friendliness and security, allowing restoration of access from a single encrypted QR code.

The first person to submit the NFT to IOG will receive the $1 million reward, provided they pass a KYC process and disclose the vulnerability only to IOG.

The hacking challenge will remain open until the end of 2024 or until the bounty is claimed, providing ample time for testing.

Hoskinson emphasized that the initiative is not just about the monetary reward but about ensuring a robust and secure environment for users.

The challenge aims to enhance security within the Cardano ecosystem in response to rising cyber threats.

He concluded that while merging blockchain and AI presents significant challenges, it also opens opportunities for innovation, requiring careful coordination and alignment of incentives.