By Himanshu Gautam Co-Founder & CTO, SecureDApp
Blockchain technology, which was initially designed to support the idea of cryptocurrencies as one of its
main applications and, more specifically, the famous Bitcoin, has become one of the most promising and
innovative technologies of the present and maybe the future centuries. In simple terms, blockchain is a
distributed ledger system through which property can be transferred between two parties with the help of
an intermediary. This decentralisation helps increase the transparency, effectiveness, and security of the
transactions, and this is why it may be helpful for companies and people.
Web3 is a new phase of the digital world that is in the process of development at the present time. This
version of the internet, that is the decentralized version and whose usage is controlled by users through
the help of blockchain technology, is a better version of the current internet. The value of these assets is
skyrocketing, but with this immense potential comes a crucial challenge: This is to ensure that these
digital assets are protected from the threats that are being presented in today’s world.
The need for robust Web3 security: Statistics highlighting the urgency
The current state of Web3 security shows that there is a need to come up with better solutions. The opportunities in the global blockchain market are expected to reach a massive $67 Global sales are expected to grow from $0. 9 billion in 2021 to $4 billion by 2026, with a CAGR of 85%. 9%. This exponential growth shows the potential of the amount of value that is stored in blockchains.
However, this also invites the wrong persons for the wrong reasons. Crypto thefts were on the rise and
reached $14 billion by the first half of 2022, which proves that cybercrime is becoming more and more widespread in the Web3 sphere Cybercriminals are not standing.
The importance of blockchain security
However, since this technology has been proven to be viable, it has also demerits especially in the aspect
of security, which companies have to ensure in order to secure their property. One of the most important
questions of blockchain security is the smart contracts, which is a code which can be defined as a contract
and works on the basis of pre-defined conditions. Smart contract flaws can lead to disastrous outcomes
and frauds like the stealing of money as well as manipulation of transactions. Thus, there is a need to be
protected smart contracts that are used by organisations in the sphere of blockchain.
There are however other factors that have to be looked into when it comes to the issue of security of
blockchain and one of them is the compliance factor. For example, blockchain networks are not
centralised and this becomes a problem when it comes to governance and in matters of the law because
existing legal frameworks are not well equipped to address such a structure. Hence, the organisations are
in a dilemma of operating within the legal requirements which are in place concerning the management of
the organisation’s affairs on the same hand while at the same time achieving the right level of security and
control.
A new emerging concept in Blockchain security is the Decentralised Identity where the identity of the
user is being restored and at the same time privacy and security is achieved. With the help of
decentralised identity protocols, organisations are in a position to liberate themselves from the hands of
the central authorities thus reducing the risk of ID theft and fraud. In particular, the development of
cryptography can be considered as the approaches that can be used to enhance the protection of Web3
transactions and, thus, contribute to the reliability of the blockchain networks.
Key strategies for safeguarding digital assets in the Web3 era:
Therefore, it is imperative for the organisations to be prepared and ensure the security of the Web3 assets
with a view to minimize the risks. This entails that certain steps must be taken to enhance the security of
the information through conducting risk assessment and evaluation on the system as well as getting more
information on the threats and opportunities through research. To ensure that they do not reveal the
sensitive information and carry out the critical transactions, the companies must adopt measures such as
the use of two or three factor authentication, encryption, access control and most importantly regular
vulnerability assessments.
Real time threat intelligence is important and the application of advanced forensic security products
cannot be ruled out in the current blockchain security environment. This is because as more and more complex and large Blockchain networks are being used in the current society, companies should look for the possible risks that may happen in the future.
Real-time threat intelligence
Real time threat intelligence is very important in improving the security of blockchain systems as it
provide organisations with a way of recognizing and preventing possible threats. Thus, the analyzing and
learning from the data enable organizations to observe the blockchain network in real time, identify the
possible malicious transactions, and avoid the security issues. Since one of the primary objectives of the
system is to control security threats and risks it is capable of recognizing and excluding them before they
become actual threats.
Blockchain forensic security
These blockchain forensic security products are relevant to organizations that would like to enhance the
security of their systems and carry out adequate investigations on any vulnerability that may have been
exploited. These products utilize complex procedures and instruments to monitor and record transactions, investigate fraudsters, and monitor the activity within the blockchain.
Conclusion
Hence, it becomes important to note that blockchain security is not as simple as it sounds and, hence,
needs a forensic and preventive approach to mitigate any threats that may arise. On this account, the
importance of preserving sound security measures, following legal procedures, and collaborating with
professional security personnel cannot be overemphasized. Such measures help institutions ready for the
new era of Web3 and be ready for it.
