As the world gravitates towards the Internet of Value or Web3, where digital technologies and cryptocurrencies form the backbone of our financial systems, the implications of cyber threats extend far beyond individual losses. They strike at the very heart of the broader cryptocurrency market and potentially destabilize global economic structures.
Rising Tides in Web3
Today, technology-native companies dominate the financial landscape, representing 80% of the top 10 largest market caps globally per Infinite Market Cap (8MarketCap), the platform that ranks the world’s top assets by Market Cap.
This trend is only expected to intensify, with cryptocurrencies like Bitcoin already rivaling major tech giants in the global race for market valuation across assets.
In August 2024, the crypto sector witnessed a staggering loss of $314 million due to cyberattacks, culminating in a total of $1.2 billion lost over the year to date. These figures not only underscore the vulnerabilities inherent in digital infrastructures but also highlight the critical need for robust cybersecurity measures.
Why are CyberThreats A Multifaceted Risk to The Web3 Economy?
Cyberattacks on cryptocurrency platforms pose uniquely severe consequences compared to traditional financial systems for several reasons:
- Irreversibility of Transactions: Unlike traditional banking transactions, most cryptocurrency transactions are irreversible, significantly complicating recovery efforts after funds are stolen.
- Lack of Regulation and Insurance: The cryptocurrency industry remains under-regulated and lacks the rigorous consumer protections that traditional financial institutions offer, leaving victims of hacks with little recourse.
- Technological Complexity and Newness: The complex and nascent nature of blockchain technology means that many users and even operators may not fully understand the security risks or how to mitigate them effectively.
- High Value and Liquidity: The high value and easy transferability of cryptocurrencies make them attractive targets for cybercriminals. Notably, the North Korean-linked Lazarus Group has exploited nearly $2.4 billion in crypto assets since 2020.
- Market Impact: The news of a hack can cause significant market volatility, exacerbating the financial impact of the attack and leading to broader market instability within the relatively young crypto currency markets.
Web3 Cybersecurity is a Pillar of Digital Democracy
Cybersecurity transcends traditional asset protection; it is foundational to maintaining the integrity of systems that support democratic institutions. Blockchain and related technologies, while heralded as democratizing forces, are susceptible to the same cyber vulnerabilities that plague more established technologies. A major hack or system breach can severely damage public confidence and erode trust in these digital solutions.
In the digital age, financial and informational infrastructures are pivotal battlegrounds for democratic values. Frequent targets, these platforms require stringent security measures to prevent financial sabotage, disruption, and the spread of misinformation—all of which can undermine democratic processes.
How Web3 Cybersecurity Literacy Trainings Can Bolster Antifragility
As blockchain technology continues to grow and reshape industries, ensuring its security is paramount. However, the underrepresentation of women in this field highlights the need for targeted initiatives to bridge the gender gap.
Recognizing the profound need for enhanced security measures, initiatives like the free 1-Day Web3 Cybersecurity Training titled “Connecting the DOTs”, piloted on September 28 in Berlin, and conducted by the women empowerment initiative SystAIn3r (read: /ˈsɪst.eɪn.ər/) and the boutique consultancy Security Research Labs, are not only progressive, they are essential for the well-being of the future economy.
Bill Laboon, the Director of Education and Governance Initiatives at W3F Foundation, a Switzerland-based entity that was “created to nurture and steward technologies and applications in the fields of decentralised web software protocols, particularly those which utilize modern cryptographic methods to safeguard decentralisation, to the benefit and for the stability of the Web3 ecosystem”, posted about the event to highlight it’s uniqueness.
Through this initiative, SRLabs hopes to build a strong community of skilled female professionals who will contribute to the security and innovation of the blockchain ecosystem. For instance, in their program, the Polkadot Ecosystem serves as the subject of cyber security analysis. Polkadot, a technology company with EUR6bn market capitalization, is considered a base layer for interoperability in Web3, building the technical infrastructure for tomorrow’s internet.
“Empowering women with the skills and knowledge necessary to excel in blockchain security is not only a matter of equality but also a critical factor in strengthening the security landscape of emerging technologies,” said Regina Biro, leading the Code Assurance team at SRLabs. “By providing this specialized training, we aim to create opportunities for women to lead in this vital area of tech.”
Programs are designed not merely as technical exercises but as comprehensive strategy sessions to bolster the collaborative defenses of Web3 developers, investors, and enthusiasts. Pilots like these underscore a communal approach to cybersecurity, advocating for collaboration and ethical practice as key components of effective digital defense.
Yip ThyDiep Ta, the founder of SystAIn3r and CEO at J3D.AI (Jedi) Labs, an AI platform for optimized learning, emphasizes the importance of equipping ecosystem actors with the foundational knowledge to build secure systems of the future. “With every project that we build in an insecure way, we invite cyber crime to our door steps and offer them our digital assets on a silver plate. These assets could be use instead to fund projects that impact societal progress and well-being rather than funding militant war operations.”
Registration Info: https://cybersec.systain3r.com
About the Author
Yip Thy-Diep Ta, CEO and founder of J3D.AI (Jedi), envisions a world where peace is more profitable than war, driving collaboration towards profitability. With an INSEAD MBA and McKinsey & Co. experience, she brings award-winning strategic acumen to leadership. She has spoken at TEDx MIT, authored a book titled “Beautiful Brains Change Tomorrow… Today” and is co-author in articles published by the World Economic Forum and Deloitte.
