{"id":26681,"date":"2022-08-22T01:37:22","date_gmt":"2022-08-22T01:37:22","guid":{"rendered":"http:\/\/egrowonline.com\/?p=26681"},"modified":"2022-08-22T01:37:22","modified_gmt":"2022-08-22T01:37:22","slug":"can-web3-be-hacked-is-the-decentralized-internet-safer","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=26681","title":{"rendered":"Can Web3 be hacked? Is the decentralized internet safer?"},"content":{"rendered":"


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Web3 came into existence posed as a blockchain-powered disruption to the current state of the internet. Yet, as a nascent technology, a fog of assumptions plagues discussions about the real capabilities of Web3<\/a> and its role in our day-to-day lives.<\/p>\n

Considering the promise of a decentralized internet using public blockchains, a complete transition to Web3 would require scrutiny across several factors. Out of the lot, security stands as one of the most crucial features as, in a Web3-powered world, tools and applications hosted over the blockchains go mainstream.<\/p>\n

Smart contract vulnerabilities<\/h2>\n

While the blockchains that host Web3 applications remain impenetrable from being hostage to attackers, hackers target the vulnerabilities within the project\u2019s smart contracts. Smart contract attacks on decentralized finance (DeFi)<\/a> platforms have surged, with a recent study revealing that approximately $1.6 billion in cryptocurrencies was stolen in the first quarter<\/a> of 2022 alone. <\/p>\n

Although DeFi is a subset of the Web3 spectrum, it reflects the biggest vulnerability within the ecosystem. As a result, Web3 entrepreneurs need to redirect their marketing budget to the development of the core system.<\/p>\n

As seen throughout the year, vulnerabilities that allow hackers to drain vast amounts of assets result in impermanent losses for the investors and may cause an indirect collapse of related ecosystems.<\/p>\n

Insider threats<\/h2>\n

In addition to external hacks, bad actors within the system may dupe the project and its investors. Fail-safe mechanisms with watered-down access to employees are required to avoid internal attacks.<\/p>\n

On Aug. 14, trading and liquidity automated market maker (AMM) Velodrome Finance recovered $350,000 from one of its team members<\/a>, Gabagool. One of Velodrome\u2019s high-worth wallets was drained off $350,000. A following internal investigation revealed the attacker\u2019s identification, allowing the company to recover the entire loot. <\/p>\n

Fortifying Web3<\/h2>\n

Over six months of the bear market coupled with countless hacks have forced crypto investors to realign their investments with ecosystems that reflect safety. As a result, Web3 entrepreneurs are expected to take measures that ensure the long-term success of their offerings.<\/p>\n

One way to minimize the risks of an attack is to conduct bug bounty initiatives. Bug bounties attract whitehat hackers, who try to identify vulnerabilities from a hacker\u2019s perspective. Developers are rewarded financially for finding and fixing valid bugs in the system.<\/p>\n

In addition, entrepreneurs must set up multisig wallets for storing funds and avoid centralized control over the wallets. Such measures, when implemented across the system, reflect a greater decentralization and insulation from orchestrated attacks.<\/p>\n<\/div>\n


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Web3 came into existence posed as a blockchain-powered disruption to the current state of the internet. Yet, as a nascent technology, a fog of assumptions plagues discussions about the real capabilities of Web3 and its role in our day-to-day lives. Considering the promise of a decentralized internet using public blockchains, a complete transition to Web3 […]<\/p>\n","protected":false},"author":1,"featured_media":26682,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[38],"tags":[2220,846,808,7758,1861],"class_list":["post-26681","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-decentralized","tag-hacked","tag-internet","tag-safer","tag-web3"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2022\/08\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDgvOTgyZjQyNTMtOTk4OS00ZmIyLWE0NzktNDgyOTQ1MGVlYWYzLmpwZw.jpg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/26681","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=26681"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/26681\/revisions"}],"predecessor-version":[{"id":26683,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/26681\/revisions\/26683"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/26682"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=26681"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=26681"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=26681"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}