Cybersecurity Threats Involved with Web 3.0
Cybersecurity scams have been extremely common in recent years, raising a lot of worries about potential hazards to Web 3.0
Let’s dive deep into Cybersecurity Threats Involved with Web 3.0…
Overview
A recent analysis by Beosin in 2022 claims that 48 significant cyberattacks on Web 3.0 occurred in Q2, resulting in damages of over $718.34 million. You must first comprehend the fundamental principles behind the web’s growth in order to comprehend how these concerns may be concerning.
Web 3.0 is a platform that allows anyone to add content and data without it being regulated by centralized gatekeepers, and it represents a significant advancement over Web 1.0, which was the first stage of evolution and did not have as many content creators. Web 2.0 allowed user-generated content from end-users.
Web 3 provides simple and illegal access for hackers to modify and break into many digital changes and transformations. You must be completely informed of the hazards due to the significance of Web 3.0
An overview of all Web 3.0-related cybersecurity concerns is provided below.
Rug Pulls
A Rug pull is a type of scam in the decentralized finance (DeFi) space, which involves a project creator or a group of individuals behind a decentralized application (dApp) or token suddenly withdrawing their funds and disappearing, leaving investors with worthless tokens and a sudden loss of their invested capital.
Rug pulls typically occur in the DeFi space where investors buy into projects that are built on smart contracts. Because the code is open source and transparent, anyone can create a new project and launch a token, even if they do not have the intention of keeping the project running.
There have been instances when bitcoin project creators ran away with the money from investors after quitting their work. In 2021, there was a recent instance of rug pulling. The project CEO and the cash vanished when the Turkish centralized exchange accepted Thodex’s investment, resulting in a loss of more than $2 billion in cryptocurrencies. There are more instances; in the realm of cryptocurrencies, this is a pretty frequent deed.
Ice Phishing
Ice phishing is a type of phishing attack that targets individuals who own or invest in cryptocurrency. The name “ice phishing” is derived from the word “freeze,” as the attackers aim to freeze or lock the victim’s cryptocurrency assets by stealing their private keys or seed phrases.
In an ice phishing attack, the attacker will send an email or message to the victim that appears to come from a trusted source, such as a cryptocurrency exchange or wallet provider. The message will usually contain a link or attachment that the victim is asked to click on, which will then lead them to a fake website or phishing page that looks like the real thing.
When a user is duped into signing a transaction that allows the hackers access to their cryptographic token, this is known as "ice phishing." For ice phishing, you don’t need your private keys. Utilizing several images and techniques to get users to click on buttons and complete transactions includes the use of attractive graphics. People are readily duped into believing that a family member, acquaintance, or wire transfer is making the transaction. The logo and URL of the website should be carefully examined to guard against email phishing.
Availability of data
In the context of Web 3.0, the availability of data refers to the accessibility and retrievability of information within decentralized, distributed networks and applications. Unlike the centralized architecture of Web 2.0, where data is stored and controlled by a few large corporations, Web 3.0 aims to create a more open and decentralized web, where users own and control their data, and applications are built on top of blockchain and other decentralized technologies.
The reputation of the publishers was everything to Web1. Due to Web 2’s very poor data quality, there were many broken links and ineffective online resources. Everything in Web3 will continue to be digital as the internet develops, which raises serious concerns about relying only on data. It has been questioned if the system and process will continue to function in the absence of data. We will continue to experience broken connections if there is insufficient and inaccurate data. The device must either store information locally or retrieve it when needed.
Smart Contract
A smart contract is a self-executing contract with the terms of the agreement directly written into lines of computer code. Smart contracts are stored on a blockchain, which is a distributed ledger technology that provides a secure and transparent way to store and transfer information and assets.
The code and the agreements contained within the smart contract are enforced and executed automatically, without the need for intermediaries such as lawyers or banks. This allows for fast, secure, and transparent transactions that are immutable and tamper-proof.
Smart contracts are a part of security, which goes beyond data. A smart contract is similar to any other contract, with the exception that it is a code-written contract that is automatically produced to fulfill particular requirements. A lack of legal protection in the event of a malfunction and smart contract logic hacks are also present. Because the smart contract you have been talking with may have been installed anonymously, even if legal protection exists you often cannot identify the accountable person, even with a lawsuit.
The Decentralized Nature
Since data resides outside of a more often seen true centralized service with a single entry point, the decentralized structure of Web3 networks makes it simple for hackers to access it. Decentralization implies that no one is responsible for the issues, which might have detrimental effects on consumers. Users must thus take security precautions to safeguard their data.
Conclusion
In conclusion, Web3 has the unstoppable potential to bring the internet and the world at large to a new level of technological development, prosperity, and effectiveness. Additionally, it opens up fresh, limitless options for both existing and incoming internet stakeholders.
References
Bug Zero is a bug bounty, crowdsourcing platform for security testing. The platform is the intermediatory entity that enables client organizations to publish their service endpoints so that bug hunters (security researchers / ethical hackers) registered in the platform can start testing the endpoints without any upfront charge. Bug hunters can start testing as soon as a client organization publishes a new program. Bug Zero also offers private bug bounty programs for organizations with high-security requirements.
Bug Zero is available for both hackers and organizations.
For organizations and hackers, register with Bug Zero for free, and let’s make cyberspace safe.
