What are the Web 3 security challenges, and why is CyVers poised to become a worldwide leader in securing web 3!

The Internet has progressed rapidly from the early days of Web1, which included static texts and visuals, to the current version – Web2. We enter the Web3 era, where value and data will quickly move across decentralized platforms with distributed ownership and control. Even though we are transitioning to a new era, some Web 2 issues will remain the same, and others will change, like vulnerabilities.?But what are the differences between Web 2 and Web 3, what are the Web 3 security challenges, and why is CyVers poised to become a worldwide leader in securing web 3??

Entering the web 3 era means we are moving from a centralized economy with intermediaries, and a central point of failures, to a decentralized and tokenized economy. First, it is no secret that?Web2 is?highly centralized.??Major tech companies (e.g.,?Amazon, Google,?Meta, Twitter, etc.) control a significant percentage of Web traffic and infrastructure with significant privacy implications.??This control also means that these organizations own their security and can bring significant resources to bear on securing their infrastructure. Decentralization is a central tenet of Web3 ; however, decentralization has security implications. With decentralization, no one "owns" the security of a system, and decision-making is distributed. Governance by consensus is generally slower, decentralized systems have no means of forcing nodes to install security updates, and decentralized governance schemes can be a target of attacks as well.

Identity management?is another significant difference.

In Web 2.0, proving real-world identity is an essential focus of many systems. Companies want to sell users' data and prevent spam on their systems, so they work hard to authenticate users. Authentication has security benefits because it can help deter, investigate, and respond to threats.?Blockchain-based systems like Web3 are pseudonymous, with users identified by their public key and blockchain address.??In Web3, key management and security are significant concerns, and weak user authentication makes attacks easier to perform and complicates the identification and prosecution of attackers.?As a result, companies like Fireblocks innovated in 2018 with their enterprise-grade multi-layer technology?(MPC-CPM)?to address the Private Keys management issues.

After centralization and identity management, the third difference with web 2 is how the?criminals commit financial crimes.?In general, stealing money on Web 2.0 involves stealing valuable data (payment card information, data that can be used for fraud, etc.) and monetizing it somehow. In Web 3.0, money is built into the Web itself as cryptocurrencies, making it easier for cybercriminals to monetize their attacks,?especially when few transactions are necessary to steal hundreds of millions of dollars. (the?Poly Network hack).

Transparency?is another blockchain specific making another security difference. While software developers try to secure their systems by attempting to obfuscate and hide any vulnerabilities in the hopes that an attacker won’t be able to find them, many projects?in web 3?are open-sourced on GitHub. And those that are not open-sourced have source code that can be downloaded from the blockchain and decompiled. This increases the probability that vulnerabilities will be discovered and exploited, making it even more essential to find and fix them before code is deployed on the blockchain. This new threat targets the logic encoded in blockchain services. These hacks have exploited many functions and services, such as?interoperability,?crypto-loan services, project governance, and wallet functionality. Whether they are addressing the financial segment like the DeFi sector or any other business segment, Decentralized Applications are all based on the following principles:

-???????On-chain and Off-chain actions

-???????Human processes (roles)

The on-chain and off-chain actions integrate mechanisms, like to pause a protocol safely and gracefully in an emergency (an attack or a bug in the system). Roles are defined to interact humanly, and we usually find the operator and governor roles. According to the security processes, and as an example, an operator will be able to pause a protocol, but only the governor will trigger the un-pause function. Unfortunately, most hacks happened after the criminals took control of a role or a process to get access to a liquidity pool, for instance, to a swap function or a price-update function. These hacks happened even though the Dapps (Decentralized Applications) used smart contract audit companies like Certik and Peckshield.

Finally,?in Web 2.0 and traditional IT, a significant percentage of IT security work is?responsive.?A patch is deployed to fix the issue if a production application discovers a vulnerability. If data on a server is corrupted or encrypted by ransomware, it can be "rolled back" to a clean state from a backup. With Web3, data is stored on the blockchain's immutable ledger. Therefore, if attacks recorded on the blockchain can't be reversed, they need to be?prevented, making it necessary for Web3 security to be more proactive and prevention-focused.

This is where CyVers is leading its R&D efforts.

By utilizing cutting-edge geometric machine learning (Topological Data Science) and analyzing off-chain and blockchain data, CyVers can identify typical crypto user behaviors.?In addition, it enables the identification of anomalies in behavior that could indicate malicious activities by hackers. Security, compliance, fraud, and risk teams can identify and respond?automatically?to incidents across the entire crypto attack surface, thanks to CyVers' Security Operation Platform for Web 3.0 businesses.?By taking the guesswork out of Blockchain security, CyVers provides Defi Protocols, Crypto exchanges, custodians, and financial institutions with an instant Crypto reality. Now security teams have a complete, current, and correct holistic picture of their data status across all Blockchain protocols and internal cyber business data.