Future Of Web 3.0 Cybersecurity: Trends, Threats, Solutions

Web 3.0 has heralded the arrival of a new breed of cyber threats specific to blockchain networks and interfaces.

In the rapidly evolving space, Web 3.0 promises to bring about a range of new functionalities and use cases that were not possible with Web 2.0.

With data-driven applications and consistent content disruption, the Web 3.0 revolution is defining the next generation of the World Wide Web. This new phase of the Web is built on decentralised technology, which paves the way for new use cases and functionalities that Web 2.0 was incapable of. Despite being in the initial stages of development, Web 3.0 is emerging as the most intelligent web technology that will streamline the semantic web, natural language processing and artificial intelligence. But as digital content and services are connected and controlled remotely with Web 3.0, so do the slew of security problems.

Threats Encompassing Web 3.0

While the foundation of Web 3.0 is to reduce any possibility of fraud, threat or data deletion, Web 3.0 is still not immune to cyber threats. The threat landscape of Web 3.0 can be broadly categorised as:

Social Engineering And New Attack Methods

Web 3.0 has heralded the arrival of a new breed of cyber threats specific to blockchain networks and interfaces. Here are some instances of novel threats:

• Smart contract logic exploits
• Attacks on short-term loans
• Cryptojacking
• Ice Phishing

These novel tactics coexist with established social engineering risks like phishing. Indeed, the intricacy of Web 3.0 interfaces – which frequently involve several privately managed wallets and passwords that cannot be recovered, makes them vulnerable to social engineering attacks.

Data Safety And Dependability

While blockchain transactions are encrypted, and data and service decentralisation decreases single points of attack and censorship threats, they also have the potential to expose data to a broader set of dangers, including the following:

• Data accessibility
• Authenticity of data
• Manipulation of data
• Less centralised control
• Identification And Anonymity

Web 3.0 features like user-controlled wallets, ID portability and data reduction alleviate some of Web 2.0's data confidentiality and privacy problems by giving users more agency and control over their data. 

A few instances of Web 3.0 identity risks include:

• User encounter
• Privacy
• Compliance
• Anonymity
• Economic Rewards And Social Dangers

Most early Web 3.0 applications and digital communities include microeconomies, currencies and other financial assets. Unlike traditional cloud or IT deployments, Web 3.0's embedded economic designs incentivise hackers.

Web 3.0 Trends

Decentralised Finance (DeFi)

Decentralised finance is a financial system without any intermediaries, allowing users to borrow, lend and share digital assets more transparently. It removes third-party from financial transactions and allows greater accessibility to financial services.

Non-Fungible Tokens (NFTs)

Non-fungible tokens allow the creation, replication and transfer of digital assets, such as gaming items, digital art, collectables and the like, that are scarce in cyberspace.

Decentralised Autonomous Organisations (DAOs)

Decentralised autonomous organisation systems function autonomously over a decentralised network. DAOs are logically coded agreements that rely heavily on smart contracts that dictate decision-making with greater transparency and community participation.

Interoperability

Interoperability allows users to access and exchange different blockchain-based services with enhanced collaboration over a decentralised network.

Web3 Development Frameworks

Web 3.0 development frameworks allow users to create a blockchain application that is transparent, secure and accessible to people across the globe who are active digitally. It provides users with the resources required to build Web 3.0 applications easily and swiftly.

Solutions That Can Dial Down Web 3.0 Threat Landscape

Security and Privacy Standards

With the decentralised networks of Web 3.0, the security and privacy responsibilities fall on the users rather than a central authority. In order to impede these risks, the system needs to develop an improved privacy and security standard to ensure that databases are protected.

Education

As the decentralised systems penetrate deeper with the new technology of Web 3.0, users need to be educated on the best practices for securing their digital assets, identifying the risks associated with digital applications, and mitigating the risk of potential scams and phishing attempts.

Decentralised Identity Solutions

Decentralised identity solutions allow individuals to control their identity and manage their databases to give users enhanced security, keeping their personal information safe and avoiding its misuse.

Auditing And Transparency

Auditing and transparency in a decentralised system allow identifying any vulnerabilities on the blockchain network, making the processes transparent for improved scrutiny and accountability. 

Regulation

With Web 3.0 picking pace, the risk of illegal networks penetrating and victimising databases increases. To help impede the risk, regulatory frameworks need improved innovation to protect users from falling victim to illegal activities.

The next generation of the Web is about more than only empowering individuals through distributed governance of technical, social, and economical, but also about better safeguarding the ecosystem. In the rapidly evolving space, Web 3.0 promises to bring about a range of new functionalities and use cases that were not possible with Web 2.0, and it is expected to have a significant impact on a range of industries, from finance to gaming to social media.

(The author is the Managing Director at Netrika Consulting)

Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP Network Pvt. Ltd.