Web 3.0 and cybersecurity: business risks and opportunities

The application of blockchain-based technologies and decentralized systems is catching speed across the technology industry. Cryptocurrency adoption is skyrocketing worldwide, non-fungible tokens (NFTs) are being sold for tens of millions,? decentralized autonomous organizations (DAOs) are beginning to challenge traditional organizational structures, and technology giants are preparing for the metaverse.

In the context of data privacy and cybersecurity, blockchain promises are also many.

Cybersecurity and transparency as core business tenets

For one, the technology will empower users to control their data without the need for an intermediary. Once the data is stored on the blockchain, each user controls how and when a third party can have access to it, as opposed to the current situation where user data is stored and managed by, for example, social media platforms.?

Eventually, the new Web 3.0 paradigm will also change how organizations and cybersecurity providers approach data security.

“The ongoing shift to Web 3.0 allows us to rethink current cybersecurity models and make them core parts of our IT systems, not just an add-on like it often is now,” says Juta Gurinaviciute, the Chief Technology Officer at NordLayer, a network security provider. “I believe the next iteration of the Web will force us to view organizational security holistically — instead of just safeguarding data, we will have the means to focus on people and their information.”??

Even though blockchain technologies might still be years from being mass-adopted, there are practices to follow that at the same time keep businesses safer against current cyberthreats and prepare them for the privacy-centered Web 3.0 future.

“Essentially, all the good data usage practices will make the transition to Web 3.0 easier,” adds the NordLayer CTO. “Organizations that are already transparent about how their user data is used not only build trust with their clients and partners — they won’t feel overwhelmed by growing privacy demands in the future, too.”

Additionally, if a given business model relies on user data, they need to offer and communicate full transparency on how, when, and who can access and use the data.?

The risks and unknowns

But like with every technological advancement, there are risks that go beyond today’s scope, too. Although it is difficult to map out the risk landscape for a technological framework in its early adoption stages, certain questions are being raised already.

For example, according to a recent survey regarding the metaverse, 87% of American consumers are worried about their privacy in the new virtual world, and 50% have fears tied to hackers impersonating them. Additionally, 47% feel their identity would not be legally protected, while 45% worry that more data could be collected and used against them.

“There are questions that don’t need a sudden answer, but we have to start thinking about them,” says Gurinaviciute. “For example, how will decentralization affect our ability to determine who controls and processes personally identifiable information? How will regulators respond to illegal content being hosted around the world? Who will have the jurisdiction to apply corresponding laws?”?

Whichever way Web 3.0 will steer the digital landscape, it is clear that the static approach to cybersecurity and data privacy is slowly becoming a thing of the past. A holistic approach to security is something businesses should already start practicing while preparing for the future of the decentralized Web.