Web 3.0 Security Challenges

Web 3.0 Security Challenges

Crypto-related headlines from most places where most of us get our news cries related to security breaches, scams and illegal activities.

Duke Professor of Law John Reed StarkA former head of the SEC office at Internet Enforcement and a skeptic – to put it mildly – space crypto-believers call Web 3.0 and most of the projects around it.

“They are market manipulations, internal transactions, fraud, theft, chicken pox, any financial crime you can think of,” Stark said.

Miss that nuance a lot, said Nick NewmanCo-founder and CEO of Bitcoin Wallet Casa. He does not argue that scammers see the uncontrolled nature of Web 3.0 as an opportunity: A blockchain network of millions of personal computers around the worldBy allowing us to post, share, download and move digital files, one day (maybe soon?) Will replace today’s Internet where central authorities become unreasonably wealthy by collecting their free user data from their warehouses filled with blinking servers, will decide? We see on this web that we access many of our online accounts, and also – theoretically – take responsibility for preventing and ensuring that we do not break.

Newman wants those who are against it, considering and currently investing in space, to realize that the new Pokemon-ish crypto video game has a risk spectrum. Axis InfinityRecently hacked for about $ 650 million – and the Bitcoin blockchain, which has never been hacked in its 13-year history.

“People need to know that there is a difference between these two things,” Newman said.

“A common thread among them is that they are completely uncontrollable,” Stark said. “That means there is no SEC auditing, no SEC exams, no archives of records, no licenses for people, no need for net capital.”

Related: What is Web 3.0?

Stark proceeded from there. But again, Newman disagreed that the immutability of a crypto transaction makes it both a boon to what he calls “censorship resistance” (which is incredibly important for giving people around the world a sense of freedom, “and the curse of losing stolen or sent crypto.) Renders as crypto.

Newman says “unless someone goes back and finds that person through law enforcement” or a centralized entity like Coinbase returns its customers from its own balance sheet.

“I don’t think it scales,” Newman said. “We don’t see any further evolution in the next 10 years.”

Instead, Neuman hopes that more people will have their own key passwords in their digital wallet with crypto tokens – a future that will require those wallets, their funds will be exchanged, and they will need existing protocols to continue improving their security.

“There’s still a long way to go,” Newman said.

“In the industry we are learning how to best protect this infrastructure,” Channelisis VP of IT and Information Security Betsy Bevilacqua Says

Chainalysis is working with those who are investigating the above Axie Infinity hack.

“We provide data, software, services and research to government agencies, crypto exchanges, financial institutions, insurance and cybersecurity companies in more than 70 countries,” Bevilacqua said.

Chainalysis follows the movement of tokens in a wallet that has been hacked or stolen from its source to its final destination.

“We’ve made everything in the blockchain human-readable,” Bevilacqua said.

The existence of that super-universal, uneditable giant spreadsheet, Bevilacqua and Newman argue, could make crypto criminals easier to catch for law enforcement agencies than for the vast majority of criminals who still make cash transactions.

“I live for a time when cybercriminals will realize that this is not money for them,” Bevilacqua said.

“The idea that this traceability is a blessing for law enforcement agencies in any way, I think – I don’t think – I know is wrong,” Stark said.

Stark noted that, even with the forensic accounting of channelization, investigators often discovered the address of the public wallet of stolen funds and did not identify the person or persons involved in the hack – the perpetrators are often not in the United States or the United States. A country with an extradition treaty.

“Cryptocurrency is a way to deal with drugs, sex trafficking, money laundering, ransomware attacks, extortion,” Stark said.

“Illegal activity accounts for about 1% of all bitcoin activity,” Newman said.

Whether one sees crypto as a huge cryptocurrency scandal, or the empowerment of criminals around the world (“I don’t even believe in blockchain” Stark says) or the future of money, technology and the Internet (“we really see it”) about private keys and securing your money Much can be promised, “says Newman). We have now reached a stage in the evolution of crypto where it seems unlikely that it will soon disappear or recede towards more mainstream adoption. Web 3.0 Security, Application and Control Not only for the people around us but also for our financial system and society as a whole.

“It’s not a problem. I can go and google it, you know?” Bevilacqua said.


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