Disclaimer: The opinions expressed in this article are solely those of the author and do not reflect the views of the editorial team at crypto.news.
The year 2023 has been marked by a downturn in the market and a strong emphasis on regulation and compliance, following the high-profile collapses and fraud cases of the previous year.
Despite the current calm, the cryptocurrency industry is never quiet for long, and change is already on the horizon. While the question of potential jail time for Sam Bankman-Fried and Changpeng Zhao remains unanswered, the legal battles seem to be settling down, and the sector is abuzz with anticipation of a new bull market in the coming year. The anticipated approval of a spot ETF and the upcoming Bitcoin halving are fueling speculation.
As market conditions shift, new challenges are emerging for web3 security professionals. Here are three key trends that will shape the web3 security landscape in the near future.
Rising Hacks and Scams:
Cybercrime in web3 tends to follow market trends. According to the US Federal Trade Commission, losses due to crypto scams in 2021 were significantly higher than in previous years. While recent data suggests a decrease in overall scam activity in 2023, certain types of scams, like impersonation scams, are on the rise. As the market potentially picks up in 2024, scammers are likely to capitalize on the financial opportunities in crypto, leading to increased sophistication and consolidation in scammer activities.
Expanding Web3 Cybersecurity Capabilities:
As fraud becomes more sophisticated, the web3 cybersecurity ecosystem is evolving with new features and tools to combat scams and illicit activities. On-chain extensions and real-time risk monitoring are being implemented to provide additional layers of protection. With the increasing involvement of traditional finance and institutional liquidity, the sector is expected to bifurcate, leading to improved risk profiling aided by advancements in AI and machine learning.
A Strategic Approach to Web3 Cybersecurity:
With each market cycle, the crypto space matures, and companies understand the need to go beyond code audits to ensure cybersecurity. A comprehensive strategy that includes secure design, monitoring, and threat prevention solutions is essential. Providers like Forta offer cybersecurity tools tailored to the specific needs of web3 operators. As we move into 2024, optimism is high, but firms must be prepared for new threats and have robust cybersecurity measures in place to protect assets and users.
Christian Seifert, Ph.D., is a researcher at the Forta Network, a decentralized platform that detects threats in web3 systems. With over 13 years of experience at Microsoft, Christian brings a wealth of knowledge to the cybersecurity space.