The Security And Hackability Of Web3 – Is Decentralized Internet Safe?

The security and hackability of Web3 has been a question asked around the internet for a while now, as more and more people want to know if the decentralized internet is safe, amidst a tide of vulnerabilities, exploits and hacks. We will delve deep into that question in this article.

The Security And Hackability Of Web3

Web3 emerged as a blockchain-powered disruption to the present status of the internet. However, because Web3 is still in its early stages, arguments concerning its true capabilities and importance in our daily lives are clouded by preconceptions.

Given the potential of a decentralized internet powered by public blockchains, a full transition to Web3 would need careful consideration of a number of variables. Security is one of the most important qualities, as tools and apps based on blockchains become more common in a Web3-powered world.

Vulnerability Of Smart Contract

While the blockchains that host Web3 apps remain impregnable to attackers, hackers target the project’s smart contracts for weaknesses. Smart contract assaults on decentralized finance (DeFi) systems have increased, according to a new report, with about $1.6 billion in cryptocurrencies stolen in the first quarter of 2022 alone.

Although DeFi is a subset of the Web3 spectrum, it represents the ecosystem’s most serious vulnerability. As a result, Web3 entrepreneurs must divert their marketing money to the core system’s development.

As we’ve seen throughout the year, vulnerabilities that allow hackers to drain enormous quantities of funds result in short-term losses for investors and may lead to the collapse of connected ecosystems.

Threats From The Inside

Aside from external attacks, dishonest actors within the system may deceive the project and its investors. To avoid internal assaults, fail-safe procedures with limited employee access are necessary.

Velodrome Finance, a trading and liquidity automated market maker (AMM), recovered $350,000 from one of its team members, Gabagool, on August 14. $350,000 was stolen from one of Velodrome’s high-value wallets. Following an internal inquiry, the attacker’s identity was uncovered, allowing the firm to retrieve the full plunder.

Web3 And Fortifying It

Six months of the bear market and many hacks have driven crypto investors to realign their investments with ecosystems that reflect safety. As a result, Web3 businesses must take precautions to secure the long-term viability of their goods.

Conducting bug bounty projects is one technique to reduce the dangers of an attack. Bug bounties attract whitehat hackers, who look for vulnerabilities from the perspective of a hacker. Developers are compensated financially for discovering and correcting genuine bugs in the system.

Furthermore, businesses must use multisig wallets for keeping funds in order to avoid centralized control over the wallets. When such safeguards are deployed throughout the system, they indicate more decentralization and protection against coordinated assaults.