Web3: Time to Step Up Your Cybersecurity Game

December 25, 2023
1 min read

The cybersecurity measures in the Web3 ecosystem are not adequate enough to protect against the rising number of hacks and scams, according to an op-ed by Sipan Vardanyan. In 2023, over $700 million was lost through various cyber attacks, highlighting the urgent need for improved cybersecurity practices in the crypto and blockchain industry.

The article notes that private capital investment in Web3 has slowed down, with venture capitalists exercising caution due to the challenging market conditions. Companies are now focusing on building and developing secure infrastructure to attract financial backing. However, the cybersecurity landscape in the industry remains problematic, with vulnerabilities in wallets, exchanges, smart contracts, and human factors.

The author points out that companies in the crypto space lack sufficient security engineers to audit their infrastructure. Many hired security engineers are no longer qualified to handle new technologies and systems, leaving companies exposed to more vulnerabilities. There has been a rise in new attack vectors, such as DeFi exploits and supply chain attacks, indicating the need for stronger cybersecurity measures.

The market for cybersecurity services in the crypto industry is shrinking, with many audit companies experiencing significant layoffs. Companies are being forced to prioritize growth over structural integrity due to budget constraints. As a response, community-driven solutions like Code4rena and Sherlock have emerged, outsourcing auditing to outside coders and security engineers, although this is not a long-term solution.

The article emphasizes the importance of a 360-degree approach to cybersecurity in the blockchain and cryptocurrency space. Despite inherent security benefits in blockchain technology, vulnerabilities in surrounding infrastructure and the human factor continue to pose risks. Companies should prioritize good cybersecurity habits and implement consistent follow-up measures to safeguard their systems and assets.

The author suggests that the industry needs to foster a depth of expertise in cybersecurity and encourage foresight and effective planning. Regular auditing and anticipation of security needs can help mitigate risks and ensure the growth of the industry. Initiatives like outlining cybersecurity standards and relying on capable experts are crucial steps toward improving cybersecurity in the Web3 ecosystem.

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