Blockchain technology is constantly evolving, and hacker activity is growing. Since 2021, Web3 has become one of Google’s most popular search terms, which is unsurprising. However, like any other technological innovation, Web3, which has given us great opportunities, has vulnerabilities. This groundbreaking innovation will be developed in the coming months and years, and its study will continue.
Currently, the general security of Web3 and the types of security threats are the main topics of discussion. Hackers repeatedly find numerous serious security breaches to gain access to customer data. Therefore, you should be careful and spare no expense to protect data from hacker threats.
What is Web3?
Web2 refers to the types of online services based on centralized blockchain systems. And the third generation of the Internet will allow applications and sites to process data efficiently using tools that use machine-readable algorithms, such as decentralized ledger technologies and big data.
So Web 3.0 crypto browsers are web browsers that open up a whole new world of decentralized web applications and the digital economy to users. Web 3.0 consists of decentralized networks running on public blockchains with applications and protocols without permissions.
Web3 vulnerabilities
While blockchains and other web3 technologies and applications are becoming increasingly valuable, they are also becoming desirable targets for hackers. As Web3 develops, various security issues come up. For example, software-driven networks are a frequent target for hacking because transactions are often irreversible.
A third party can steal user funds from a smart contract in a permissionless environment if there is any bug in the code. It is because DeFi does not require checks for large transactions. Web2 classifies vulnerabilities using CWE, but smart contract defines problems with classifying smart contract weaknesses (SWC).
Ice Phishing
This term has been around for quite some time. The essence of a hacker attack is that the user is tricked into signing a transaction that allows the criminal to use tokens. It is called a “fraudulent operation.”
DeFi smart contracts typically delegate permission to use the token as a smart contract transaction. Alternatively, the perpetrator tricks the victim into signing a transaction that gives them control of their tokens. People do not suspect anything, thinking the money is sent from a friend or a family member in the form of bank transfers. As a rule, criminals use well-designed graphics. These images employ different strategies to trick people into making financial transactions. To avoid being subjected to “Ice phishing,” you should be very careful when opening emails. Scrutiny of URLs and websites can help prevent this hacking attack.
Cryptojacking
To carry out this attack, the criminal steals the victim’s processing power and uses it to generate bitcoins for enrichment. When a person unknowingly or mistakenly downloads malicious software containing scripts, such as a malicious website or a link in an email), the hacker gains access to their device connected to the Internet. With the help of these “miners,” a hacker creates a cryptocurrency using third-party programs. Note that cryptocurrencies can only be created through the use of computational power and computer programs.
Hackers use their victims’ computers to mine new cryptocurrency tokens and generate fees.
Criminals get their hands on new fees and tokens, and victims must cover mining costs, including computer repairs and electricity bills.
Measures should be taken to avoid becoming a victim of this attack. It will still be correct to install the most recent software updates and patches for the operating system and all applications. In addition, you should ensure that your website is on an approved safelist. It is also possible to block known cryptojacking sites, but unfortunately, it may leave the device or network vulnerable to new cryptojacking sites.
Data Manipulation In Dapps
Silicon Valley insiders control a significant portion of the blockchain sector. Decentralized applications are a popular type of Web 3.0 application. Some people have developed a blockchain campaign and launched tokens on their own. However, much data is required to train an AI on a particular topic.
If smart contracts or Dapps are not secured, another type of vulnerability can be exploited by an attacker. The emphasis is on the importance of data in AI when a third party uploads defective, low-quality data.
NFTs Exploitation
NFTs are a key component of Web3 and are growing in popularity. But, alas, they can be vulnerable to hacker attacks. For example, a criminal can break, manipulate, or abuse the smart contracts embedded in NFTs.
First, the hacker sends links to the corrupted NFT to the potential victim. JavaScript code is used in malicious NFT hacks to send a set of requests. By sending a request, the victim grants the hacker full access to their bitcoins or NFTs. Therefore, you should think about your safety in time.
Rug Pulls
In this case, the criminal developer abandons the crypto project and hides the funds that investors invested in the project. Often, hackers create a cryptocurrency, list it on the DEX, and then link it to a major cryptocurrency. Then, hackers reduce the coin price by removing funds from the liquidity pool to zero.
Unlike centralized cryptocurrency exchanges, decentralized exchanges allow users to publish tokens without auditing and for free. In addition, open-source blockchains like Ethereum make it easy to create tokens. These two factors, alas, can be used by hackers. A timely pool’s liquidity check is very important to prevent an attack. Looking for a lock in the token pool is also necessary.
Hackers may even flood their pool with liquidity to gain investor confidence on Twitter, Telegram, and other social media platforms. You have to be careful not to give the hacker a chance.
Conclusion
Safety is never 100%. With the development of Web 3.0 technologies, cybersecurity risks will also increase. There are many reasons to consider security and data privacy at the start of a project.
Security must be ensured so that all the benefits of modern technology can be enjoyed without risks. In addition, companies should turn to cybersecurity experts to keep their data safe from hackers.
FAQ
Since information and data are stored in a distributed ledger, Web3 applications are more secure and resistant to hacker attacks than traditional web applications. However, it can be hacked.
Web 3 applications can be perfectly secured on distributed ledgers and resist hacker attacks like traditional web applications.
Web3 is the idea of a new version of the World Wide Web, including concepts such as blockchain technology, token-based economy, and decentralization.
