Hacking, data breaches, and phishing scams are all things which have become a common language with everyone being online. The warnings are clear, and nowadays, most people are aware of the pitfalls, and businesses work hard to ensure online security.
However, with Web 3.0 emerging and the uptake of cryptocurrency over the last year being much more than the initial predictions, cyber security across web 3.0 needs to be addressed. If not, it could be over before it has had a chance to begin if people need to trust their identity and digital funds are secure.
2022 saw the biggest year for crypto hacking. It is thought that as much as $3.8 billion was stolen throughout 2022, with significant incidents occurring in March and October.
Chainalysis, who have been researching blockchain vulnerabilities, said the transparency of crypto transactions makes decentralised finance vulnerable — hackers can scan DeFi code for vulnerabilities and strike at the perfect time to maximise their theft.
Increasing growth means prioritising security.
New rules and tighter regulations are being introduced into crypto trading platforms to help with some of the issues, as the idea will look at activity rather than assets when new rules apply.
While growth is essential, development needs to be done safely as a priority. Grauer urged decentralised finance businesses to ramp up their cybersecurity plans as a first priority.
“It’s about prioritising safe growth rather than growth at all costs, and making the tough decisions early on to create quality protocols rather than being the first to launch a new contract without hiring a security team,”
Taking the time now to implement the protocols and avoid issues in the future will secure not just assets but the trust within web three, which will be essential when it has more mainstream use.