- Web3 security includes pre-launch tools and live monitoring for ongoing exploits.
- Wallet security is rising due to multi-party key control.
- Web3 components like DEX and NFT markets are going through better audits.
Web3 has the potential to draw in millions of users, as it has already done in the case of top games. However, the risk of blockchain projects remains high. Smart contract risk, NFT theft and bridge exploits are one of the most common attacks, as well as DeFi attacks for trading.
Despite falling into a few categories, attacks remain unpredictable, and often time-sensitive. Web3 projects are aiming to have a good reputation, especially in guarding large-scale wallets.
Chainalysis – Tracking Compromised Addresses
Chainalysis is a growing and evolving hub for blockchain tracking. Starting out with big chains like Ethereum and Bitcoin, Chainalysis branched out to tokens and smaller networks. This tool makes blockchains even more transparent. Chainalysis helps both older projects and new startups respond to unusual activity, hacks, drained wallets and more, keeping track of lost funds.
Even with some off-chain tokens, Chainalysis can help track funds and increase the security of treasuries, bridge wallets and liquidity reserves.
Chainalysis has specialized in tracking and pointing out problem transactions, as well as addresses linked to hacks and exploits. Chainalysis can also give data on stolen NFT, for those that want to avoid buying stolen items.
Chainalysis has also helped with multiple investigations into specific wallets and heists, and is the go-to service for law enforcement in blockchain-related cases. Chainalysis is also helping track events in Web3, related to GameFi thefts, exploits, or NFT transfers.
CertiK – Leader in Smart Contract Audits
CertiK has been around crypto projects for years, becoming one of the top auditors for smart contracts. The building of smart contracts has been open to anyone, but due to human errors, exploits have been made possible.
Certik offers tools to ensure that smart contracts are safe and will not lead to loss of funds. Smart contracts are responsible for key actions such as distributing tokens from a bridge reserve, or minting new tokens. Exploits have managed to move the balance to malicious actors.
Certik is already auditing projects in the Web3 space, ranking the best ones in terms of safety and security at scale.
CertiK directly works with Web3 projects, going over their main smart contracts. While the audit is not obligatory, it adds a layer of reliability.
CertiK recognizes up to $400M in exploits related to smart contracts, just in the first quarter of 2023. Smart contract audits are also especially important for DEX trading and safe liquidity.
Fireblocks: Wallet and Custody Security
Fireblocks is a service to safely hold digital assets, offering wallet-as-a-service for Web3. The goal of Fireblocks is to offer one-stop Web3 access. The platform is open for developers, with the possibility to create blockchain-enabled apps without the complexity.
Fireblocks uses Multi-Party Computation wallets, which offer secure holding of assets, combined with speed. The MPC technology is a type of account abstraction, where the end user can sign transactions, but does not hold the entire private key, and will not have to store a passphrase.
Fireblocks is also not a custodial app, and all users have 24/7 access to their funds. Fireblocks also focuses on security and insurance, which are key in building reliable Web3 apps. Recently, Fireblocks also started adding Avalanche subnets, on top of its list of about 400 tokens.
Fireblocks can be used to build Web3 apps with seamless integrations of any market operation for NFT, DEX or exchanging funds.
ConsenSys Diligence – Detailed Smart Contract Security
ConsenSys Diligence is the auditing feature of ConsenSys, one of the key blockchain and Web3 services. ConsenSys specializes in Solidity smart contracts, and urges all projects to include the audit step before their smart contracts go live.
ConsenSys has also acquired Truffle Suite, which since 2015 has been one of the leading tools for smart contracts, and for building Web3 features. ConsenSys Diligence is also offering app fuzzing technology to notice errors and potential exploits.
The goal is to help developer teams find out about vulnerabilities before mainnet launch, where bugs cannot be repaired due to the immutable record on the blockchain.
PeckShield- Tracking Exploits and Timely Warnings
Not all threats are predictable, and to avoid losses, timing may be key. Peckshield is a tool monitoring all protocols, which can notify early for unusual events. PeckShield is one of the best sources for real-time monitoring for exploits, underlining Web3 features that are dangerous at some point.
PeckShield also tracks NFT theft and other exploits and is targeted to end users. The PeckShield plugin will also warn of malicious sites and fake NFT mints. PeckShield is also providing an overview of trends in NFT exploits.
PeckShield continues to work on address labeling and tracking wallets linked to bad actors. PeckShield also works with advanced teams, offering audits and potential threat monitoring.
Security standards are still evolving in Web3 space, and using audits or extra security are optional. However, more services are appearing and already integrating with top exchanges, to ensure better security.
Web3 projects that aim for wide adoption are trying to remove the flaws of earlier blockchain startups. With more users, security and reputation are key for the goal of onboarding mass Web2 users into Web3.
