How To Learn Web3 Security and Protect Your Decentralized Enterprise – Cryptopolitan

Web3 is the next-generation Internet, built on the principles of decentralization, trust, and user empowerment. This revolutionary technology allows you to own your data, create digital assets, participate in decentralized applications (dApps), and, of course, implement web3 security.

Cyber attacks in Web3 can lead to devastating consequences, including financial loss, identity theft, and long-term damage to a company’s reputation. Due to this reason, the demand for security professionals in Web3 is on the rise. 

In this Cryptopolitan guide, we will look at the steps that you need to follow to learn Web3 security. But first, let’s look at some basic differences between Web2 security and Web3 security. 

Differences between Web3 security and Web3 security 

In WEB2, to gain unauthorized access to a server, you cannot view the server’s code directly. Instead, you need to send HTTP requests to observe the server’s response and identify any vulnerabilities it may have.

Smart contracts in Web 3 are different because their code is usually open source, meaning you can search for flaws. Even if the code is not open source, you can still see the byte code on Ether-scan and de-compile it, which is not difficult.

The prerequisites of Web3 are also less rigorous in comparison with Web2. For instance, entry-level cybersecurity analysts in Web2 need extensive knowledge of the following: Backend languages, Client side languages like Javascript, known flaws like SQL injection, networking knowledge, linux security, web server configuration, cryptography and HTTPS protocol, and more! 

On the other hand, Web3 prerequisites include Solidity + Hardhat/Truffle, HTML/JavaScript, basic understanding of server side languages, blockchain architecture, Cryptography, and known flaws/attacks in Web3. 

Of course, well-rounded cybersecurity professionals in Web3 often come from a strong security background in Web2. However, knowledge of Web2 cybersecurity is definitely not a requirement to start learning Web3 security.

Now, let’s take a step by step approach to learning Web3 security. 

1. Understand the Basic Web3 Vulnerability Stack 

Data in Web3 is stored on the blockchain, which is an immutable ledger. This means that any attack recorded on the blockchain generally cannot be reversed. Many Web3 applications are open-source, which can allow malicious actors to analyze the code for vulnerabilities and plan attacks well in advance. Based on this context, we can classify the most prevalent Web3 security attack surfaces into three layers: infrastructure, smart contract and protocol logic, and ecosystem.

1. Infrastructure
2. Smart Contract and Protocol Logic
3. Ecosystem

Infrastructure

In the early stages of system design, developers should prioritize identifying potential security threats during system design. After selecting a blockchain protocol, the next crucial step is to determine how the application will securely interact with the blockchain. This is where infrastructure primitives become relevant.

• Wallet & Private Key Management: Lately, there has been a rise in the usage of cryptographic wallet security solutions such as multi-party computation (MPC). These wallets help to reduce the danger of storing private keys in a single location. Instead, the private key is divided into pieces, encrypted, and distributed among several parties. These parties can individually calculate their portion of the private key shard they possess to create a signature for verifying transactions without unveiling their encryption to the other parties.
• Access Management: Access management is a security process used by developers to control which users or wallet accounts are allowed to sign and execute transactions. To assist with this, developer tools such as Web3auth* and Moralis* provide authentication and identity verification for users.
• Consumer Security: Consumer security refers to a set of solutions that scan, simulate, analyze, and protect user interactions with Web3 applications. It is an emerging technology.
• Monitoring & Observability: There is a new field called monitoring and observability that involves using platforms to analyze the status of the infrastructure services powering Web3 applications, including their health, reliability, and uptime.

Smart Contract and Protocol Logic

It is recommended for developers to spend time detecting bugs in their code by conducting internal and external code reviews. They should consider creating programs that offer incentives to their user community to enhance security on open-source codebases.

• Security Testing Tools: Security testing tools are specifically created to assist developers in performing blockchain security testing in a more efficient manner. These tools are comprised of frameworks and solutions.
• Formal Verification: Formal verification utilizes various technologies and processes that employ algorithmic logic for examining the actions of smart contracts in response to particular inputs. This is done to explore all possible behaviors of the code and ensure that specific contract properties are met.
• Audit Service Providers: Audits are evaluations of a project’s codebase that are conducted by an external security team. They are usually requested and paid for by the project team. The goal of audits is to identify and describe security issues such as vulnerabilities, potential attack scenarios, and recommended solutions. A report is provided as the result of these audits.
• Bug Bounty Platforms: Bug bounty programs provide incentives for security researchers to find and report vulnerabilities found in open-source smart contracts and Web3 applications in a responsible manner. The rewards given to security researchers usually depend on how critical the discovered vulnerability is to the project’s team.

Ecosystem

After deploying a smart contract or protocol to production (mainnet), it is crucial for developers to set up systems that can detect any suspicious activity in the smart contracts and critical operational components, based on known threat models.

• Protocol Risk Management: Protocol risk management solutions provide tools that automate risk management, enhance capital efficiency, and simulate how a protocol performs under extreme market conditions.
• Threat Intelligence: Threat intelligence refers to gathering, sorting, and examining data to comprehend the intentions, objectives, and techniques of cybercriminals when targeting potential victims.
• Blockchain Forensics: Blockchain forensics is the use of methods and tools to identify, examine, control, and resolve cybersecurity risks that affect blockchain networks or Web3 applications.

2. Develop the required skillset  

As the world shifts towards decentralized applications (dApps) and blockchain technology, the demand for Web3 security professionals is skyrocketing. To become a sought-after expert in this niche, you need to master a specific set of skills. In this article, we’ll dive deep into the essential skills required to thrive as a Web3 security professional and protect the digital future.

Fundamental Computer Forensics Skills

As a Web3 security professional, you must have a strong foundation in computer forensics to detect and analyze cyber threats. This involves understanding the techniques and tools used to gather evidence, identify vulnerabilities, and mitigate cyber-attacks. 

Key computer forensics skills include data acquisition and preservation, digital evidence analysis, log analysis, file system examination, and timeline analysis. Proficiency in computer forensics will help you pinpoint the source of security breaches and provide valuable insights into preventing future attacks.

Learn Cryptography

Cryptography plays a crucial role in Web3 security by ensuring the confidentiality, integrity, and authenticity of data. To excel in this field, you need to understand various cryptographic algorithms, including symmetric and asymmetric encryption, hash functions, and digital signatures. Familiarity with cryptographic concepts such as public and private keys, certificates, and key exchange protocols is essential for securing digital assets and communications within decentralized systems.

Network-Level Vulnerabilities and Attacks

As a Web3 security professional, you must be able to identify and mitigate network-level vulnerabilities and attacks. This involves understanding the intricacies of network protocols, network architecture, and communication patterns in decentralized systems. 

Mastering the detection and prevention of attacks like Distributed Denial of Service (DDoS), man-in-the-middle, and Sybil attacks will help you safeguard decentralized networks from potential threats.

System-Level Vulnerabilities and Attacks

Decentralized systems can also be vulnerable to system-level attacks. To protect Web3 infrastructure, you need to be proficient in identifying and mitigating system-level vulnerabilities such as buffer overflows, race conditions, and privilege escalation. Familiarity with tools and techniques for vulnerability assessment, penetration testing, and secure software development will help you build robust and secure Web3 systems.

Smart Contracts and their Vulnerabilities

Smart contracts are at the heart of many Web3 applications. As a Web3 security professional, you need to understand how smart contracts work, the programming languages used (such as Solidity), and the common vulnerabilities that can plague them. These vulnerabilities include reentrancy attacks, integer overflows, and access control flaws. Learning how to audit smart contracts for security issues and implementing best practices for secure smart contract development is essential to ensure the safe operation of decentralized applications.

Consensus Algorithms Security

Consensus algorithms are the backbone of blockchain networks, enabling them to reach agreement on the state of a distributed ledger. Understanding various consensus mechanisms, such as Proof of Work (PoW), Proof of Stake (PoS), and Delegated Proof of Stake (DPoS), is crucial for Web3 security professionals. You must be able to identify potential weaknesses in these algorithms and implement security measures to protect the integrity of blockchain networks.

Blockchain Security Mechanisms and Risk Assessment

A comprehensive understanding of blockchain security mechanisms, such as digital signatures, hashing, and Merkle trees, is critical for Web3 security professionals. You should also be skilled in conducting risk assessments to evaluate the security posture of blockchain networks and dApps. This involves identifying potential attack vectors, evaluating the impact of potential breaches, and recommending appropriate countermeasures to minimize risk.

Communication Skills

Strong communication skills are indispensable for Web3 security professionals. You will often need to work with diverse teams, including developers, project managers, and stakeholders, to convey complex security concepts and recommendations effectively. Being able to articulate your findings and ideas clearly and concisely will enable you to collaborate successfully, drive security improvements, and raise awareness about potential threats and best practices. Developing excellent written and verbal communication skills will not only help you excel in your role but also contribute to the overall security and success of the Web3 ecosystem.

3. Get Professional Certifications 

While Web3-specific security certifications are still emerging, some organizations and platforms have begun offering specialized training and certification programs for blockchain and Web3 security:

• CompTIA Security+: Security+ is a widely recognized entry-level certification that covers a broad range of cybersecurity topics, including network security, threat management, and cryptography. This certification is ideal for professionals starting their careers in cybersecurity.
• ChainSecurity Certified Smart Contract Audits: ChainSecurity is a leading provider of smart contract audit services. Their certification program is designed for professionals who want to specialize in smart contract auditing. The course covers auditing techniques, tools, and methodologies for identifying and mitigating smart contract vulnerabilities.
• Certified Blockchain Security Professional (CBSP): This certification program covers a range of security topics specific to blockchain technology, including consensus algorithms, cryptographic algorithms, and smart contract security. It also addresses the unique security challenges and risks associated with decentralized applications (dApps).

What roles can you get as a Web3 security professional?

Product security engineer

The role of a product security engineer requires expertise in creating comprehensive threat models for various products and services. They are also responsible for ensuring compliance with rigorous standards to identify and mitigate security risks. Moreover, Web3 product security engineers need to collaborate with technical leaders in operations and engineering teams.

Infrastructure Security Professional

The role of infrastructure security is to protect the infrastructure of Web3 projects and help them grow as intended. This involves creating plans for deploying identity and access management (IAM) solutions and securing all environments of the project. The infrastructure security engineer is also responsible for identifying any weaknesses and addressing them through the proper patching process.

As a member of the detection and response team for a Web3 project, your role will involve combating both external and internal threats. As a detection and response engineer, you can expect a competitive salary in the field of Web3 security engineering, but it’s important to be aware of the necessary skills needed to effectively respond to security threats on the job.

Detection and Response Engineer

To work as a detection and response engineer in Web3 security, it’s essential to understand how to create a data pipeline and triggers to identify security risks. You’ll need to be able to automate incident response processes. It’s also crucial to have skills in developing data analysis solutions for investigating security breaches.

Conclusion

Learning Web3 security is an exciting and rewarding career choice in today’s rapidly evolving digital landscape. By acquiring a solid foundation in computer forensics, cryptography, network and system-level vulnerabilities, smart contract security, consensus algorithms, blockchain security mechanisms, and communication skills, you’ll be well-prepared to tackle the unique challenges of Web3 security. 

Pursuing professional certifications will further validate your expertise and demonstrate your commitment to staying current with the latest developments in this dynamic field. Invest in your skillset, stay informed, and seize the opportunity to shape a more secure and resilient Web3 ecosystem for all.