- A recent study by Immunefi, a security auditing company, revealed that in 2022, 46% of crypto losses were attributed to Web2 vulnerabilities.
- Within Web3 vulnerabilities, the report identified three main categories: design flaws, implementation flaws, and infrastructure weaknesses.
- The study highlighted the shift towards a more community-driven approach to Web3 security, with increased collaboration among projects, users, and security experts to address vulnerabilities.
- To brace for the 2024 bull cycle, the report suggests that Web3 projects invest in security measures, conduct thorough testing and audits of their smart contracts, and actively engage with the security community.
- By adopting these measures, Web3 projects can fortify themselves against the expected rise in hacks and exploits as cryptocurrency prices surge once more.
Amidst the prevailing concern over the hazards within Web3 technology, discussions abound regarding its inherent risks, from the peril of losing investments to rug-pulls, scams, and hacking incidents.
The discourse unveils a compelling narrative, attributing the vulnerabilities and losses not solely to Web3 but also highlighting the culpability of Web2 technology. This narrative, particularly prominent during the 2022 bear market, spotlighted major exploits like the BNB Chain, Ronin, and Qbit hacks, tarnishing Web3's reputation. Instances like the Terra Ecosystem crash, wiping out billions in a day, serve as stark reminders of the sector's susceptibility.
However, a fresh perspective emerges: Could Web2 be equally responsible for these crypto losses? Recent findings from security audit firm Immunefi suggest so. Contrary to popular belief, it's not solely bad smart contracts driving the hacks; nearly half, approximately 46%, stemmed from flaws within Web2 infrastructure.
Immunefi's in-depth analysis also reveals common vulnerabilities across both Web2 and Web3, such as leaked private keys, weak encryption, and DNS hijacking. The report categorizes security loopholes into three groups: design flaws, implementation glitches, and infrastructure weaknesses. Each category poses unique threats, as seen in exploits like the BNB Chain bridge hack, QBit hack, and Ronin bridge attack.
Looking ahead to the 2024 bull cycle, Immunefi's report forecasts a pivotal shift. Emphasizing the indispensable role of Web2 security alongside Web3, it underscores the vital role of user interface and a community-driven approach in fortifying security. As crypto projects gear up for the anticipated surge, the report advocates investment in security measures, meticulous testing and auditing of smart contracts, and active engagement with the security community.
While this insight serves as a guiding beacon, it's crucial to acknowledge the inherent volatility of cryptocurrencies. The Voice of Crypto aims to provide accurate information; however, readers are encouraged to conduct their research and exercise prudence in financial decisions within this unpredictable landscape.