Web 3: Opportunities and threats coexist; strengthen security measures to eliminate security threats

More and more companies are realizing the vitality that blockchain can bring to their businesses. Many well-known brands have started issuing NFTs, creating DAOs, and hoping to enter this decentralized market expanded by innovative technologies as soon as possible and get a share of the pie. However, opportunities and dangers have always coexisted. If there is no complete security deployment and you rashly enter the Web 3 field, you may come back empty-handed.

Is blockchain a hacker's ATM?

The emergence of blockchain technology has brought revolutionary breakthroughs to traditional finance, data privacy, supply chains, cross-border remittances, and other application areas. Since DeFi (decentralized finance) and NFT and other chain-based products have become mainstream, user assets have gradually flowed from centralized deposit channels to decentralized deposit wallets, cross-chain platforms, and lending products. The huge influx of funds has made the blockchain-related market a tempting target for hackers. Taking the attack suffered by the BonqDAO lending protocol as an example, due to the smart contract vulnerability in the protocol, hackers were able to manipulate the price of the AllianceBlock token ALBT and minted a large number of BEUR tokens linked to the euro on the Bonq protocol. According to the analysis by the blockchain security company PeckShield, the attack caused a loss of about $120 million, and the price of the AllianceBlock token plummeted by nearly 80%.

This attack is not an isolated case. According to a report by the blockchain analysis company Chainalysis, 2022 was the year with the largest scale of hacker attacks in the history of the cryptocurrency industry, resulting in a total loss of $3.8 billion. Among all the incidents, DeFi protocols accounted for 82.1% and the stolen amount was $3.1 billion. Such huge profits have made DeFi a laughing stock as a hacker's ATM.

Low threshold and few regulations attract trouble

The reason why DeFi has had so many accidents is also related to its low threshold. Companies or project parties saw the business opportunities in the decentralized market and were eager to enter, but DeFi accepted all these entrants. Almost anyone can launch a DeFi protocol and write a smart contract, but they may not have the technical level or security awareness to find and fix the vulnerabilities in the code. As a result, unscrupulous people take advantage of these vulnerabilities, waiting for the opportunity and easily taking away huge amounts of assets.

In addition, Web 3 is currently an area where regulatory agencies have little reach. It can be said that both regulators and hackers are targeting Web 3, but while the former is still dealing with red tape, the latter has entered a wilderness, taking and grabbing at will.

Comprehensive Security Protection

Despite rampant hackers, you can still be safe in the Web 3 market as long as you have a reliable security team to rely on.

It's important to note that in the blockchain ecosystem, any infrastructure not based on blockchain technology can still have vulnerabilities, even smart contracts on the blockchain can have security vulnerabilities. As a pioneer in Hong Kong's blockchain services, UD Blockchain and Security Expert Team has participated in various blockchain business application projects for many years, not only familiar with possible security vulnerabilities that may arise in the process, but also understands the concerns of project parties.

We provide different security deployments for the five-layer architecture of the blockchain, including technical reviews of smart contracts and frontend application code, as well as regular security assessments such as penetration testing and vulnerability scanning, to provide one-stop security management services for various blockchain business applications such as NFT projects and trading platforms, DeFi protocols, cryptocurrency exchanges, blockchain nodes, and DApps.

In the Web 3 market where danger and opportunity coexist, UD Blockchain security crises for you, allowing you to focus on development and seize opportunities.