1. Is web3 safe?

303 blockchain-related security incidents in 2022, resulting in losses of up to $3.777 billion. We have been witnessing a spike in the number of web3 security threats for the past three consecutive years, 2020 saw 123 security incidents, 2021 ended with 236, and not surprisingly, 2022 was even higher to 303. These statistics tell the importance of security in Web3.

There will be no point in creating a web3 ecosystem if we can not keep our protocols safe from attackers. The functioning and success of web3 depend on how well we can reduce the risk of being hacked. The web3 security risks are real, $3.777 billion is a huge number, and these incidents create a sense of fear and showcase the risk web3 faces today.

2. Web3 Cyber Security

Soon after the dawn of the Ethereum blockchain and the rise of blockchain-based protocols, security has always been a key aspect. Security is now the top requirement because no user trusts the protocols without it. Web3 community travels a long road to ensure users’ safety, and auditors play the most important role in this journey.

2.1 Role of Web3 Security Companies

Several security companies take it upon themselves to create a safer environment and provide solutions to various web3-based protocols. We at QuillAudits, are the leading Web3 security firm on a mission to make the user experience safe and secure.

We are the ones who take the responsibility of auditing smart contracts for protocols to help keep the users safe. And this blog is one of those many attempts to keep you safe by sharing some security tips to keep your protocol safe for users.

3. Expert tips to ensure safety

In this section of the blog, we will one by one move through some tips which will help you and your protocol in the long run and help build trust and better relationships with the users. Let’s go.

3.1 Always go for the Security by Design Approach

Security is an aspect which needs to be taken care of even before you start writing code. You see, the methodologies you follow and the dependencies you have in your protocol play a huge role in creating a safe and secure protocol.

We need to have a safe and secure design to protect protocols from attackers. This, in broad terms, means having security-minded criteria for designs, products and infrastructures. For example, developers should work to minimise attack surface areas, secure defaults and zero-trust frameworks, and ensure separate and minimal privileges.

3.2 Two-Factor Authentication

This has been a very successful security mechanism in the web2 space. This reduces the risk of becoming a victim of phishing attacks which is a threat in web3. There have been a lot of incidents related to phishing, like “ice phishing” attacks.

Two-factor authentication is an excellent way to deal with phishing attacks because the process involves validating the device used for authentication purposes rather than just passwords.

3.3 Improved user-controlled key-management

One of the founding pillars of blockchain technology is cryptography. But new users or even many intermediaries struggle to keep private keys safe. To make things better, you can go for a custodial wallet mechanism. If not, you can try to educate the user space about it so that some disruptive elements do not hinder their experience.

3.4 Beware of social attacks

There are threats not only on-chain, but we must also be cautious of off-chain dynamics. Several attacks have fit the criteria of social attacks on the protocol. These attacks can sabotage protocols completely by taking control of the community’s decisions.

The protocol members must be aware of these threats and always implement relevant countermeasures. These types of attacks are hard to identify and hard to counterfeit. Thus it is always advisable to go for audits from recognized firms such as QuillAudit. You can find more about social attacks at https://blog.quillhash.com/2023/02/10/maximizing-dao-security-an-experts-guide-to-auditing-the-social-layer/.

3.5 Vulnerability reporting methods

There should be a well-established definitive method for reporting vulnerabilities to the protocol authorities, ensuring the details of issues, especially for critical vulnerabilities, are not publicised.

A bug bounty is one such programme run by various dApps. It involves some good reward to the hacker in exchange for potential vulnerabilities before they could be exploited and damage the protocol.

3.6 Auditors — Web3 Warriors

Security is important if you want to build anything in web3. This is often the only difference between a successful and a failed protocol. Users never want to invest their time and money in protocols which are not safe.

All the methodologies mentioned above aim to provide you with the best tips, but many of these tips’ successful incorporation requires extreme expertise, which often outs the developers. Thus nowadays, almost every protocol goes for external audits to secure themselves and build trust in the web3 space. Auditors help make your protocol free from on-chain attacks and guide you to prevent being attacked socially and secure yourself from some less common attacks.

4. Conclusion

It is important to remember that Web3 is still growing and will take some time to replace Web2. We are in a continuous process of learning and implementing new changes to help make that transition happen. These changes call for continuous security method integration, and new changes bring unexplored paths, which could even lead to some unexpected damage.

These unexpected damages can be handled with the help of auditors who are experts at their work. Such expertise is held by QuillAudits, which helps their clients stay secure in every way possible. Check out our website and do get your Web3 project secured!