The cryptosphere is not the only industry that is experiencing uneven development. The main problem was cybersecurity. While the blockchain is not fully protected against external threats, a mistake in development could cost a lot. What will make hackers more frequent in the future? And what is the cause of the shortage in specialists? The retelling the Material Vice.
Every day, it seems like a hacker is stealing millions of dollars worth of cryptocurrency. It is.
These are just a few of the recent months.
- Poly Network robbed of $600 Million
- $320 million from Wormhole, a cross-chain crypto platform.
- $30 Million — Crypto.com
- Multichain users have contributed approximately $4 million
- $140 million from VulcanForge, a crypto gaming company
- Visitors to badgerDAO have contributed almost $120million
- $ 150 Million – BitMart is a crypto exchange that claims to be “the most reliable”.
The total amount is $ 1.3 billion. This is not the complete list. The company Elliptic, which specializes in blockchain analytics, claims that DeFi protocols have lost $12 billion to date. Not to mention the fact ordinary users are continually denied their NFT with monkeys.
Hackers have a wide range of methods to attack their victims, including smart contract hacking and phishing attacks.
The crypto world, or Web 3.0, has cybersecurity problems, and it won’t be easy to fix them. Experts say that friendly hackers and people who understand software security are the only way to save the industry.
This is because many professionals find this area to be immoral, if not absurd. It isn’t easy to make the transition.
Jazzy, a pseudonymous researcher and co-founder at cybersecurity company Zellic, notes that there is an “incredible lack of crypto auditors” and that it is important that people who are interested in this field understand the differences from traditional security.
He says that the stakes are higher as a mistake in traditional penetration tests can lead to project failure that could cost all of its money.
“Most smart contracts feel like sending a rocket into outer space.” If the calculation is incorrect, it will explode.”
It is difficult to publish smart contracts that are DeFi or cryptocurrency-based. This is because it is different from writing mobile applications or web apps. Trail of Bits co-founder Dan Guido warns this. He has been auditing smart contract contracts for over 5 years and is a specialist in cybersecurity.
Smart contracts are complex pieces of code that execute on the blockchain. They cannot be deleted and, like all things on the blockchain they cannot be reversed. Guido adds that they are software with high levels of control. This means that it is difficult to correct an error. They are different from other software.
“All programs have flaws. The Web 3.0 postulates that code is the law, raising the stakes and making these errors impossible to fix. It’s a fun game, until you lose half of a billion dollars because of one vulnerability,” Jennifer Fernick (senior vice president and global director for research at NCC Group), said.
“Web 3.0 evangelists have a dangerous belief that blockchain is intrinsically secure. It is not. She adds that while there are many vulnerabilities specific to blockchain, decentralized systems also face most of the same risks as other systems.”
Tal Beery is the CTO of ZenGo’s crypto wallet. He is also one of few cybersecurity experts who specializes in the crypto industry. He says that Web 3.0 security is in an extremely dire situation. He notes that while smart contracts can be secured in theory, it is not more difficult than other types code. However, smart contract exploit programs are much easier to monetize because they deal with cash.
He also said that smart contract errors can be caused by interaction with other contracts. Even if the code is secure, it can still interact with vulnerable objects and cause catastrophic losses.
Popularity of DeFi and cryptocurrency has led to changes in cybersecurity companies’ activities, with some focusing on this new industry. There have also been new players that are exclusively focused on blockchain security.
Beeri stated that hacks will increase in the near term. “However, venture capitalists are looking for Web 3.0 security solutions. There are talented teams that are beginning to work on it.”
Smart contracts are not the only security issue. Hackers can also hack Discord channels, which are used by almost all crypto companies to communicate with their users. This is a common use of phishing.
Sites that are related to crypto projects are becoming increasingly popular targets. They are hacked via the Internet infrastructure of third parties. NFTs are particularly vulnerable to social engineering and Phishing. All a hacker has to do to steal them is get permission from their MetaMask wallet.
Marcus Carey is a cybersecurity expert who has many years of experience. He recently started consulting for artists, content creators and investors in the Metaversable cryptosphere. Its goal is to assist people who don’t understand basic cybersecurity and could become a target for hackers. He also wants to combat skepticism, and to attract more security professionals to the cryptosphere.
Carey believes that people are naturally skeptical and resist change. However, cryptocurrencies, smart contracts and DeFi will not disappear and they will eventually overlap with traditional businesses. Even cybersecurity experts will need to be able to understand and assist their clients in this area, even if they don’t want to deal with NFT/cryptocurrencies.
Kimber Dawsett is another cybersecurity expert, who has been in the field for over ten years. She criticizes hackers as well as those who denigrate NFT. She said that it is important to inform users about risks and keep them engaged is part of her job.
One problem is that many want to get projects and protocols out as soon as possible to protect their investments and to be first in the market. They don’t pay enough attention cybersecurity. The cryptosphere requires more than just experts: It must anticipate threats right from the beginning.
Carey says it’s the Wild, Wild West at the moment.