5 Top Cybersecurity Threats Involved with Web3

Cybersecurity scams have become quite a norm in recent times, and have left so many unanswered questions as to what might be the threats faced by Web3.

According to a new report by Beosin in 2022, Web 3.0 witnessed 48 major cyber attacks in Q2, with total losses of approximately $718.34 million. To understand how these threats can be worrisome, first, you must understand what the evolution of the web is all about. The evolution of the world wide web has come a very long way from Web 1.0, which is the first stage of evolution and did not have so many content creators, to Web 2.0, which allowed user-generated content from end-users, and now we are at Web 3.0, a platform that allows anyone to add content and data without it being monitored by centralized gatekeepers.

Web 3 opens several digital opportunities and transformations, and due to this, it gives hackers easy and unauthorized access to manipulate and break into. So because of the importance of Web3, there are risks that you need to be fully aware of.

Below is a total breakdown of cybersecurity threats involved with web3.

5 THREATS INVOLVED WITH WEB3

Smart Contract

Security is not just about data; it also includes smart contracts. A smart contract is like any other contract, except that it is an automatically generated contract written in code to meet certain conditions. There are smart contract logic hacks and a lack of legal protection when there is a problem. Even if legal protection exists, most times you are not able to identify the responsible party, even with a lawsuit, because the smart contract with which you have been communicating may have been deployed anonymously.

Rug Pulls

“Rug Pulls” is a relatively new term in which crypto projects are being abandoned and investor funds are nowhere to be found. There have been incidents of developers of cryptocurrency projects abandoning them and running away with investors’ funds. There was a recent incident of rug-pulling in 2021. After the Turkish centralized exchange accepted Thodex’s investment, the project CEO and the funds disappeared, which led to a loss of over $2 billion in cryptocurrency. There are more incidences; this is a very common act in the crypto world.

Ice Phishing

Ice phishing is when a user is tricked into signing a transaction that gives the hackers access to their cryptographic token. You don’t need your private keys to engage in ice phishing. The use of well-designed graphics and the engagement of so many visuals and strategies to trick viewers into clicking on the buttons and making transactions People are easily swayed into thinking the transaction is being done by a family member, friend, or some wire transfer. A thorough examination of the website’s logo and URL can help prevent email phishing.

Availability of data

Web1 completely relied on the reputation of the publishers. Web 2 had very low data quality, leading to broken links and less effective information on the web. As the internet grows, everything in Web3 will keep taking on a digital form, and 100 percent reliance on data is a major concern. There have been questions about whether the system and process will survive if there is no data available. Without enough data and the accuracy of the data, we will keep having broken links. The machine either needs to make local copies or retrieve information on demand.

The Decentralized Nature

The decentralized nature of the networks in Web3 makes it easy for hackers, as data exists outside of a more commonly seen real centralized service where there is one entry point. Decentralization means that no one owns the problems, which can have serious consequences for users. Therefore, users have to take security measures to protect their data.

In conclusion, Web3 has unwavering potential to take the internet and the world in general to a new technical level of growth, profitability, and efficiency. Also, it gives room to new, unlimited opportunities for stakeholders already in the internet world and those coming into it.

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