The world is constantly evolving, taking us to new spaces where we can experience things better than ever before.
Speaking of evolution, the Internet world is moving away from monopoly dominance. This means that Web 3.0 is breaking new ground.
Until then, most communication and data access is handled by a central gatekeeper rather than by users.
But with great trust also comes responsibility for investing in blockchain. The most pressing concern of all with Web3 is its security.
Security is not a one-time task, but a process of addressing technology’s hidden complexities.
Let’s unravel the Internet’s changes over the years, from its previous state to its current state, and look for the challenges associated with it.
transformation
The Internet’s growth trajectory begins with Web1, Web2, and Web3. Tim Burns Lee, widely known as the founder of the web, coined names for various categories of web evolution.
In detail…
Web 1.0 laid the foundation for the read-only web. This allowed users to consume information simply by searching and reading.
There wasn’t a lot of engagement because users can only read information and can’t contribute or change anything on the web.
Then came the change of the web, distinguished as Web2.0. Web 2.0 made it possible to read and write, increasing user interaction on the Internet.
Users began interacting in groups through e-mail, social media platforms, and more. It’s easy to guess what happened next.
Big tech companies have taken over the space and taken over central control of user information. The major traffic of Web2.0 will be brought by techs such as Google, Facebook, Netflix.
These companies have served as the main impetus for blockchain enthusiasts to enter the curious space of Web3, for users to control their own data ownership.
For the most part, Web 3.0 brings Read-Write-Own iterations. Data processing in Web2 has increased the credibility of private companies.
That meant placing too much reliance on central corporations to act in the best interest of the public. To overcome this, Web3 was designed to act intelligently and independently.
Using artificial intelligence and IoT, the interaction between the physical and digital worlds will be established in Web3. Not only about communication, but also about the creation and ownership of assets and the power to have a say in the governance of the platform.
In short, the privilege of data ownership through decentralized governance is what web3 offers users.
The greater the control handed over to the user, the greater the responsibility. This is where security issues arise.
More on that below.
Keeping up with Web3 security
Researchers predict the blockchain market value will exceed $6 million by 2023.
As the industry uses blockchain applications to meet its operational needs, security concerns arise. The issues dealt with at various levels become apparent in the following passages.
blockchain authentication
Most dapps that are supposed to work by decentralized means do not authenticate API responses. In practice, web3.0 applications use centralized services such as Infura, Alchemy.
Due to decentralization, powers and permissions are on the blockchain rather than in a central database.
But the penetration of the central point of service in the dapp functionality shows the credibility of web3 apps.
This shows that the Web3 model has not yet completely eliminated central control, and removing these points from the equation is one of the challenges.
Lack of safety net
The blockchain landscape is inherently unregulated and most regulators lack a clear understanding of the area.
There are no advisory bodies or written rules on how this ecosystem will work, disrupting the structure and bringing bad interactions and bad actors to its advantage.
Therefore, the activities carried out, whether good or bad, are beyond doubt. safety net or regulation Search in case of crisis.
Private key security
Ownership of user assets and access to them is controlled by private keys. They act as user-controlled entry points for managing wallets.
The problem is losing those keys, but that means losing ownership of the assets. However, the user relies on her web2 platform to manage these keys for the safety of her assets.
But decentralization doesn’t make much sense operating in this way, where users are required to manage their keys without the involvement of an intermediary.
Here are some examples of 2022 private key compromise and money loss assessed:
Harmony protocol abuse cost $97 million, Slope wallet hack cost $8 million, and ZBExchange private key compromise cost $4.8 million.
These numbers really show the effect and impact private keys have on Web3 properties.
misuse of data
Blockchain integrates AI technology to study human emotions and recreate them for seamless virtual experiences.
But automation has the side effect of exploiting human behavior by impersonating humans and scamming the space. This leads to vulnerabilities that affect users who just want the best web3 experience.
Accountability for decisions
As mentioned above, the primary structure of space has not yet been explored. This alerts the decentralized community to security concerns, as no one is responsible for any problems that occur in the decentralized space.
Scalability
The scalability of blockchain technology is a major obstacle to wider adoption of web3. Vitalik came up with the scalability trilemma of decentralization, security and scalability.
Only two of the three can be selected at any given time. This demonstrates the need for improvisation.
smart contract
Last but not least, its value weight is proportional to the risk you are exposed to. As such, smart contracts are immune to most hacks by attackers who exploit coding flaws.
Smart contract hacking is on the rise, as is the growing scope of Web3. Smart contracts are coded with complex functionality, opening up the potential for a myriad of hacks to be launched by exploiting slight differences in coding.
Audit contracts from third-party companies assess the security strength of developed contracts to assist in the secure deployment of protocols.
Here’s a quick look at some recent smart contract hacks. DaoSwap’s smart contract validation error was exploited for 581,257 USDT.
Additionally, contractual vulnerabilities in the ShadowFi and DDC projects resulted in losses of $300,000 and $104,600, respectively.
For the benefit of the web3 community, Audit firm Bring more value to smart contracts than ever before.
Eventually,
The space needs to grow in maturity for users to handle data democratization and ownership of data.
Awareness at different levels helps educate the world and make it a web3 follower.
- protocol designed in with ethical practices in mind
- Perform security audits of developed logic contracts
- Use due diligence services before making an investment
- Educate peers to develop a learning and questioning mindset
Over the years, QuillAudits has strengthened its portfolio of protecting Web3 projects. This has saved over 15 billion dollars.
From awareness programs to audits and due diligence services, we cover all aspects of Web3 security under one roof.
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