In a Web3 world, security is one of the most important things that must be there for many people to use tools and apps built on blockchains. Using blockchain technology, Web3 could change how the internet is set up right now.
Given the possible benefits of a decentralised internet that uses public blockchains, a full switch to Web3 would have to consider several different things. Security stands out as one of the most important features in a Web3 world where more and more people use tools and apps that run on blockchains.
Smart contract vulnerabilities
Hackers focus on the weak spots in the smart contracts of the Web3 project since people who want to hold Web3 apps hostage still can’t get into the blockchains that run them. A recent study found that in the first three months of 2022, about $1.6 billion worth of cryptocurrency was stolen. This means that attacks on systems of decentralised finance (DeFi) that use smart contracts are much more dangerous.
DeFi is the most dangerous thing for the ecosystem, even though it is part of the Web3 spectrum. Because of this, Web3 business owners must use the money they spend on marketing to work on the core system.
Dangers to the country’s safety
In addition to attacks from the outside, bad users inside the system could also trick the project and its investors. There must be fail-safe procedures and limited access to employees to stop attacks from inside the company.
Velodrome Finance is an automated market maker that deals with trading and liquidity (AMM). Gabagool, a member of their team, gave them $350,000 back on August 14. At Velodrome, someone stole $350,000 from a wallet that cost a lot. After that, the company did an internal investigation, which helped find the person who did it and get all of the stolen goods back.
Because of the over six-month long bear market and the many hacks that have happened, investors in cryptocurrencies have had to move their money to safer ecosystems. Because of this, Web3 business owners need to ensure their products and services will continue to be successful.
One way to make it less likely that bad people will attack you is to run bug bounty programs. Whitehat hackers like bug bounties because they make them look at a system from the point of view of a bad hacker. The company pays developers for their work when they find and fix fundamental problems in the system.
Also, it is up to the business owner to set up multi-sig wallets to store cash and ensure that no one person can control all of the wallets. You can invest in Solana is good to invest
How does web3 work?
Now that we know our guiding principles, we can look at how different parts of building Web3 are meant to help us reach our goals.
When you use a site like Facebook or YouTube, the company that runs the site gets your information, owns it, and makes money. When you use web3, your information will be saved in your crypto wallet. On Web3, you will use your wallet to interact with applications and communities. You can take all of your information with you when you log out. Since this information belongs to you, you should be able to decide if you want to sell it or not.
Pseudonymity: Your wallet is made so that your privacy and the fact that you own your data are built in. On Web3, your wallet is your identity, and it’s hard to figure out who you are from your wallet. So, even if someone sees what your wallet is doing, they won’t be able to tell that it’s your wallet just by looking at what it’s doing.
There are services whose goal is to help people find their cryptocurrency wallets that were used for illegal things. Your everyday activities and uses, however, keep your identity hidden.