Even though much of the initial hype around the crypto economy hinged on its use of blockchain technology, more and more people in the last couple of years (especially following the decentralized finance boom of 2020) have begun to realize that the ongoing Web3 revolution is much broader than its underlying technology. To put it another way, Web3 represents an entirely new paradigm for the world wide web (Web2) — one that is rooted not only in the ethos of decentralization and shared ownership of data, but transparency. However, like any other technology, Web3 also has its share of problems. As this sector has grown over the last few years, so has the entry of bad actors and hackers. Since these individuals are financially incentivized to carry out their nefarious schemes, it is possible for them to illegally acquire millions of dollars via a single exploit, which is entirely unheard of in the world of traditional Web2 systems. To elaborate, even though there are several well-established security/privacy systems in the Web3 market today (such as OpenZeppelin’s secure contract library, Immunefi’s bug bounty, Peckshield’s scam token, and phishing site protection), it continues to face a growing number of hacks, seemingly every month. For example, earlier in October, Binance’s BSC Token Hub bridge was drained of more than $500 million after hackers were able to forge artificial withdrawal proofs. Similarly, Axie Infinity’s Ronin bridge was hacked earlier this year for $650M.
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