Byline: Hannah Parker
The Web3 movement, which uses distributed digital networks like blockchain and cryptocurrencies to return economic rewards to members, is causing a stir in the technology sector.
Proponents and opponents of the Web3 movement have engaged in passionate disputes, especially in light of the tremendous control, financial, and information asymmetries of Web2’s search, e-commerce, and social media giants. However, these discussions frequently ignore actual economic risks in favour of talking about centralised control, the importance of regulation, and tried-and-true methods for making money.
Photo by Jonathan Borba on Pexels.
Issues in Web3 Security
Contrarily, as was previously mentioned at the application level, the security issues in the Web3 environment are inherited from Web2.0. However, there are additional security issues at the protocol level. Nevertheless, decentralised application (Dapp) users may be tricked into disclosing important information by certain security flaws. Hackers’ attempts to undermine security and deceive consumers are getting increasingly sophisticated. Making security your top priority is essential because of this.
According the Bitcode Method official website, Security Threats in Web3 include:
- Spamming
- Scams
- Ransomware: a type of malware intended to encrypt files on a computer, rendering any files and the systems that depend on them useless, according to the CISA. Then, malicious actors demand a ransom in return for the decryption. Cryptocurrency is sometimes used in ransom requests.
- Cryptojacking: Malicious software (malware) that infects your devices and uses them to mine cryptocurrencies is known as cryptojacking.
- Scripting for smart contracts
- Using social engineering
- Attacks through denial of service (DOS)
- Wallet Dusting Attacks: to deanonymise users and compromise their privacy, hackers transmit a small quantity of cryptocurrency to a wallet.
- Attacks through phishing
- Hackers also employ honeypot assaults to entice their victims and obtain information about their identities.
- Directing assaults
- Sybil attacks: A Sybil attack is the creation and usage of numerous bogus network identities by hackers to overwhelm a system and flood the network.
- 51% Attacks: Having more than 50% of the voting rights on a proof of work blockchain entails control and manipulation of the ledger.
How Crypto Solutions Lead to Safety in Web3
Most cryptocurrency fans want stronger protections against scammers and other unethical behaviour. Bringing about regulatory clarity should then be a given, as well as including usability engineers and user experience designers. Web3 businesses should consult a lawyer experienced in crypto and blockchain applications to protect themselves against liability and safeguard their intellectual property.
Security in Web3 allows one to create a more seamless user experience. The fact that most users cannot understand transaction requests makes adoption difficult and makes it simple for people to be duped. It would be beneficial to use plain text to demystify transactions. What money is being transferred? Which way should we go? When a user signs a transaction, what precise permissions are they granting?
It signals risky transactions. Cryptocurrency wallets can provide quick insight into the contracts users are engaging with and their potential for maliciousness. They can give users the option to rate a transaction or counterparty, track whether other users have reported a contract or a counterparty as fraudulent, and show users warnings before contract execution.
They provide schooling materials. Self-custody is a critical component of Web3, decentralised in the NFT environment. This is a significant change from Web 2.0. More users can be brought into the space safely using educational resources.
Additionally, a blockchain uses a “Consensus Mechanism” to confirm the legitimacy of every piece of data that makes up the database. For a transaction to be recorded using this process, all miner nodes on a blockchain must agree before doing so. Every transaction is additionally asymmetrically encrypted, and its ownership is justifiable.
Blockchain security is based on the simple reality that it takes more computational power to construct a fraudulent transaction than all of the participating miner nodes. The expense of brute-force or data corruption assaults on a blockchain becomes unaffordable as the network grows and computers naturally become faster.
If the community addresses the usability and security issues plaguing this domain, Web3 may become the next paradigm. Decentralisation and robust encryption are the two central tenets of Web3 security. These capabilities are inherent to blockchain technology, a self-protecting database that, by design, resists modification. However, as cyberattacks have increased, there has been a simultaneous demand for security experts in the sector. Since Web3 is still in its infancy, this presents a fantastic opportunity for those seeking to gain an edge in this industry.
Photo by Ivan Babydov