Web 3.0 is still an undiscovered ground for most regular people who have never learned it. Lots of users heard about blockchain technology, crypto assets, and other staff related to web3. But have they heard about web3 security? Technologies of the third internet generation are increasingly attracting criminals and fraudsters, entailing security issues, and initial security measures are often insufficient to stop them.
Today we want to expose what kind of security risks you face while using web 3.0 and what are the best practices to fight them.
Web 3.0: what is it?
As we all know, the internet, which we use every day, has been going through phases. Generally, there are just three phases (generations) of the net known by now.
The first one was web 1.0 when big companies controlled data quality and content, and default users were just consumers of the content, not creators. Information security was not a major issue those days, as cyber criminals were just starting their way.
Then, web 2.0 came, changing the internet game quite much. From this time, everyone has become content creators by making social pages, blogs, etc. (user-generated content). But big companies still have centralized control, which causes data manipulation risks. Security implications started to be a leading factor when creating online content due to the significant amount of fraudsters/criminals.
Nowadays, we are placed in the transitional phase between web 2.0 and web 3.0. Web 3.0 entirely changes how the internet functions, implementing blockchain networks. The power is distributed among all the users, and big companies are losing their supremacy. Web3 introduces many new concepts like decentralized applications, crypto technologies, and smart contracts, which shift common threats to other new areas.
Vulnerable areas of web3 security
Even though most of the new concepts implemented in web 3.0 have promising security layers, in practice, security professionals can already define their known vulnerabilities.
The first ones to get under threat are private keys. Those are special codes required for you to get access to your crypto wallet. Security leaders highly recommend keeping your keys in a safe place as they are often stolen.
Smart contracts are a core of distributed ledger components. They exclude a demand in a third party for the transaction, as they are an automated third party themselves. Smart contracts can’t be that easily directly hacked to steal money. But code mistakes can occur within smart contracts, which causes reentrancy and other problems.
Smart contracts are created within blockchain networks, featuring distributed ledgers and network nodes, and are a foundation for the best blockchain auditors. They contain many important database layers, but their accessibility depends on the type of blockchain network. For example, public blockchain networks allow anyone to join and check data.
List of web3 security best practices
Digital specialists have already developed some effective methods and recommendations that will improve your security posture and prevent emerging threats. Some of the methods can be utilized by regular users, and others should better be used by companies. But anyway, here is our list of the most effective way to mitigate risks in web3.
Minor things matter
It is better to start a proactive approach when it comes to security practices with minor things. For example, set a multifactor authentication and other user privacy protections, which take a little time but make a significant difference.
You should always remember that private wallet keys are common targets for cybercriminals, which puts them at constant risk. You can implement some traditional security practices to reduce the chances of successful hacker attacks on your keys, and you need no additional security resources for that. A good piece of advice would be to keep your wallet key on the physical object, like a notepad. This will basically delete any risk of cyber attacks on your wallet key, but
It is also recommended to avoid open wi-fi networks as they might serve as the traps set by cybercriminals. Your data might be threatened if you log in using such networks.
Get yourself a malicious link detection software so you will never fall victim to hackers’ links and some social engineering practices.
There are also some channels resemble traditional resources, where you can find many useful tips. For example, they can tell you about bug bounty programs, where is much useful info about vulnerabilities.
Utilize security by design principles
Many traditional security practices evaluate security by design as one of the most efficient ways to reduce attack surface areas. Thus, software tech builders and developers should always strive to follow traditional security design principles during programming. In addition, it would be best if developers knew how to address common threats so they can develop blockchain network underlying technologies considering attack prevention techniques, what will go on and off-chain, traditional application logic, and what is required to validate transactions.
Apply security governance techniques
Security governance is a systematic approach to security that creates an entire mechanism for fighting common cyber attack categories. Thus, security principles should be implemented in most of your network layers. Security governance also requires you to create strong incident response protocols that protect your blockchain network and other distributed ledger components.
Smart contracts security audits
As we mentioned previously, smart contracts might have some coding problems. So you will need to implement security to prevent any errors. This is done via a special service called smart contract security audit.
An audit is completed by security teams who are professionals in the blockchain space. They will carefully check all your code, leaving no room for errors. It is a systematic process that takes quite some time, but it is an important stage of the smart contract/blockchain development process.
After the end of the audit, security researchers will give you recommendations on how to remediate found vulnerabilities. But some auditing teams will remediate flaws themselves, but it will have an additional cost.
Any traditional company launched in a web3 has to go through penetration testing as it is one of the security best practices. This is an ethical hacking procedure done by proffesional who try to get into your network systematically. So they need to hack technology’s architecture by exploiting weak spots of your system. At the end of the procedure, you will be granted a report exposing weak spots and vulnerabilities of your system. It helps you to understand insider attack vectors that can be used against your system.
It is very important for decentralized autonomous organizations to keep their security high. So just like your industry peers, you should utilize the most effective security methods to block yourself from an enormous disruptive potential held by web3 hackers. Don’t neglect minor things, secure defaults, use wallets that require multifactor authentication, and never forget about audits and pen tests!
Initially, web3 implements better security measures than web2.
Hackers might get data which will lead to access privileges used for stealing funds.
Fraudsters can invent schemes related to the most expensive and prospective crypto coins.
The most effective web3 security practices are smart contract audits and penetration tests.