Security in Web3. What are the Challenges Ahead?

Web3 envisions a digital future free of censorship and centralized management. However, to make this vision a reality, specific challenges must be overcome, one of which is security. Web3 security has been a major barrier to overcome, due to the technology’s infancy level architecture. This is also evidenced by the DeFi industry losing $1.3 billion and $2 billion to hacks in 2021 and 2022.

While Web3’s security challenge is similar to that of Web2, the extra promise of decentralization necessitates strong security to power dApps. Even though blockchain offers numerous advantages, it is still in its early stages, making it vulnerable to flaws. We are aware of the obstacles and believe that they must be addressed along the way!

Potential Challenges to Overcome

Web3 faces numerous security challenges, most of which are not new but are equally relevant to Web2. However, the differences between the two introduce new security vulnerabilities while amplifying existing ones. Here are some of the barriers currently facing Web3 security:

Blockchain’s Immutability

Immutability is one of the key benefits of blockchain. It ensures data integrity, allowing companies and industry regulators to discover data tampering promptly. Moreover, it simplifies auditing and opens up new possibilities in query, analytics, and general business operations.?

However, the same issue poses a security challenge. Since data is stored in an immutable ledger, it is impossible to reverse network intrusions. This necessitates more proactive and prevention-focused Web3 security, which is a major concern of the industry.

Identity Management?

Blockchain provides a solid infrastructure for identity management. It eliminates the need for middlemen by allowing individuals to directly store either identities or data on the blockchain. This also prevents any third party on the internet from accessing or exploiting user data. Ultimately, blockchain-based identity management ensures the privacy and security of user data.

This feature is a double-edged sword. Since blockchain identifies users based on public keys and blockchain addresses, it becomes difficult to manage the keys that are stored online. Moreover, inadequate user authentication makes assaults simpler to carry out hacks and complicates the identification and prosecution of hackers.

Decentralization

One of the biggest benefits of Web3 is decentralization. It liberates users by allowing them to function without regard for trust or permission. There is no single point of failure, and no censorship is possible. Furthermore, one can have an ownership or a stake in a decentralized system which makes it preferred over centralized systems.

While it's an important aspect of Web3, it has security consequences. Decentralization means that no one "owns" a system's security, and decision-making is distributed. Consensus governance is often slower, and decentralized systems cannot force nodes to install security upgrades. Moreover, decentralized governance methods can be attacked.

Crypto Payments

Cryptocurrencies are at the core of Web3. They make payments simple and efficient. The key benefit of crypto is that it is borderless and permissionless. Users can transact any amount to any location on the planet without fear of censorship by any centralized authority. Moreover, crypto transactions incur low fees, which makes it a preferred choice for many. However, the same crypto component of Web3 makes monetizing attacks easier for hackers. Since crypto has been made easily available through smart contracts, bugs in contracts have made it simpler to drain the crypto.

Securing E-commerce: The Web3 Way

Web3 is transforming every industry, including e-commerce. The emergence of Web3 e-commerce marketplaces, as well as the integration of crypto payments into online stores, is on the upswing. As a result, securing Web3 commerce marketplaces and users’ privacy has become a necessity.?

We at exeno are on a mission to use blockchain technology to create the highest security standards in the crypto-commerce industry. We take the best of blockchain technology and apply it to e-commerce. At the same time, we are aware of the obstacles, which is why we are building a whole, secure ecosystem.?

Our crypto-commerce store is to offer a secure shopping experience. Furthermore, a P2P marketplace and a payment gateway are in the works, both of which will contain robust security measures to ensure an unprecedented Web3 experience.?

An extremely important issue when it comes to online security is identity management and verification. With our original payment processor Screx, customers will keep full control and ownership of their data. Of course, we will use the potential of blockchain technology, with its immutability and decentralization. At this point, we are at the stage of checking the possibilities offered by the recently created Polygon ID platform. However, Screx itself (with features such as crypto price stabilization, SSI Identification, and much more) will be available in the second quarter of 2023.

Finally, it's important to mention that at the heart of our solutions, there is the exeno coin (EXN), which in early October will be available not only through exeno dApp but on recognizable exchanges during IEO.