Since the dawn of Web3, we have seen huge advancements in the development process. We have efficient methodologies for developing smart contracts, some really good testing mechanisms and great tools that help us debug and identify flaws. The other thing that is continuously evolving is the security aspect of smart contracts.
Web3 has faced security threats since the beginning. If we look at the stats, we saw 49 hacks in the month of May, amounting to a total loss of $106 Million. In 2022 we witnessed 167 major attacks in web3, which corresponds to $3.6 Billion in loss. The number of attacks doubled in Q1 of 2023 compared to the Q1 of 2022. We are witnessing a huge spike in the number of attacks. Overcoming these evolving security-based challenges is still hard. But with the help of experts like QuillAudits, Smart contract security can be greatly enhanced.
Smart contract auditing offers a tough layer of security to the protocol, which makes it resistant to any smart contract security risks. The security loopholes in smart contracts are exploited to the hackers’ advantage. To address this issue, auditing is very crucial after the development process, which almost every successful protocol goes through. As we move towards the future, auditing techniques and methodologies are improving.
The Mechanisms of Future
As we advance to the future, the Web3 security industry is taking huge leaps to ensure security in the best way possible. There have been many researches and studies confirming the effectiveness of various security mechanisms. In this section, let’s discuss the major updates in Web3 security.
- Formal Verification:- Formal verification techniques have been in use for a while now, it provides a good method for testing smart contracts. This technique will become more and more prevalent shortly because this uses mathematical validations to check the correctness of the smart contract code. This works wonders in identifying potential vulnerabilities.
- Enhanced Auditing Tools:- Tools are taking the technology world by storm. No matter what industry you are in, you will find awesome tools that make your work easy. The complexity of smart contracts is increasing, and so is the need for advanced auditing tools, making it an area to be researched more.
- Decentralised Auditing:- Community-driven and decentralised approaches will be one of the most interesting advancements in the security industry. Incorporation of this will provide protocols with the collective expertise of a decentralised network of auditors and validators, thus enhancing security practices and reducing the possibility of failure.
- Integration of Trusted Execution Environments(TEEs):- Well, it sounds complex at first, but the Trusted Execution Environments (TEEs) help protect sensitive data and code execution from being tampered with by external parties by providing hardware-level security. We may see this as we advance towards more security-oriented systems.
- Upgradable Smart Contracts:- Surely something fascinating. This revolves around the concept that smart contracts can be made upgradable, allowing the contract logic to be updated without disrupting the system. Continuous research is being carried out for designing upgradability such that only authorised changes will be integrated.
- Multi-Signature Wallets:- They are already here and used in various bridge protocols. It revolves around the concept that multiple-party signatures are required to authorize transactions. This provides an extra layer of security. However, there have been instances where this method failed. You can find many bridge examples, so more research is needed to improve further.
- DeFi Innovations:- Web3’s most widely talked about part is DeFi, and it is expected to expand in future. Thus, we must work to provide a more security-oriented environment for our DeFi protocols. Therefore, we will see better security-oriented changes in oracles, flash loan attacks and other techniques that manage the risks associated with complex financial interactions shortly.
Conclusion
Security is one of the most important aspects when it comes to Web3. If you look at the stats, we are witnessing a continuous increase in the number of attacks in the past few years. This makes secuirty a major issue to talk about for the Web3 community.
It is commendable how the web3 community is moving towards a more security-oriented approach. We are observing that many projects are going for a smart contract audit, and the users are developing a sense to only invest in projects which have a good audit report with an eye on user safety. As we advance in the Web3 world, we will surely see major changes, as discussed above, which will help enhance the secuirty measures of our protocol.
When it comes to secuirty, nothing beats smart contract audits. Even the users now understand the safety it provides; thus, they only invest in audited projects making smart contract audits a must-have for the protocols. QuillAudits has a history of providing our clients with the best secuirty. We adopt best-in-class industry methods to secure blockchain protocols. Visit our website to learn more and get your project audited with no further delay..
