Web3 security: How to identify the risks and use protection tools?

The Web3 space has completely revolutionized online interactions, but it is still not completely risk-free. While underlying technologies such as blockchain bring more resilience, Web3 has inherited many security risks from Web2. Moreover, it also faces new forms of attack.

Main types of Web3 risks

With Web3 progressing at a fast pace, it is imperative to identify the risks associated with this new iteration of the internet. Four main categories of risks emerge from the transition to Web3:

· Data security. The broader network topology in Web3 introduces new data security risks. While blockchain transactions are encrypted, and data decentralization reduces single points of attack, it exposes data to various risks, including data authenticity and manipulation. Additionally, less centralized oversight raises concerns about endpoint attacks, traffic overloads and service availability exploits.

· Social engineering. Despite the adoption of blockchain-based infrastructures, Web3 is still plagued with social engineering threats. These risks include smart contract logic hacks, flash loan attacks, cryptojacking, rug pulls and ice phishing, among others. Traditional social engineering threats such as phishing attacks still pose risks, and the complexity of Web3 interfaces makes matters worse.

· Identity. Web3 offers users more control over their data thanks to features like user-controlled wallets, ID portability and data minimization. However, self-sovereign identity, pseudonymity and anonymity also bring downsides. Transparent public blockchains come with security and privacy tradeoffs. User experience, privacy, compliance and anonymity concerns arise due to the decentralized nature of Web3.

· Market manipulation. Web3 relies on decentralized networks that require secure channels to communicate with the real world. Oracles are the most common solution, but they still cannot guarantee the fairness of market prices or that the markets are not manipulated. In 2022, a rogue crypto trader used millions of USDC tokens to manipulate the price of Mango’s MNGO token on its decentralized exchange to drain more than $100 million in liquidity from the exchange.

This tool addresses most Web3 threats in real time

Many people are exploring the features of Web3, but few of them pay close attention to potential risks, especially because of the misunderstanding that Web3 is automatically way more secure than Web2. Thankfully, there are specialized tools that ensure safer navigation of the Web3 space, and one of them is Web3 Antivirus.

The tool can be easily set up as a browser extension, and it can verify all parties and assets that users interact with on Web3 to notify them before taking potentially dangerous actions. Web3 Antivirus audits the smart contracts behind all transactions in real time to identify dangerous logic, vulnerabilities and compromising permissions to access user funds. It also verifies tokens and simulates transactions before execution to ensure a secure outcome.

To date, the tool has already blacklisted over one million websites and identified tens of thousands of dangerous smart contracts.

Web3 Antivirus is improving its capabilities thanks to regular upgrades. The team developing the extension launched its 0.6 version earlier in April, adding several new features, including:

• Fair fiat token price. Since decentralized networks don’t have direct access to the real world, it’s important to make sure that the price provided by decentralized applications is fair. This reduces the risk of market manipulation.
• Support for NFT bids on marketplaces. This feature checks user bids on nonfungible tokens to eliminate the risk of so-called reentrancy attacks.
• DEX limit order support. Limit orders give users better control and management of their funds.
• Opera support. The tool is now available on the Opera browser. Web3 Antivirus is also supported by Chrome, Edge, Brave and Firefox.
• Algorithm improvements. The algorithm for processing smart contracts to identify potential threats has been improved. Also, Web3 Antivirus’ search algorithm for phishing sites has been updated.

Thanks to ongoing improvements and a user-friendly approach, Web3 Antivirus helps users explore the Web3 space securely while reducing potential risks in real time.