Passwords are Dying: Here’s what’s Killing Them

For years, we’ve relied on passwords to protect our personal and financial information online. From banking to social media, passwords have been the gatekeepers of our digital lives. But now, it’s time to admit that the era of passwords is coming to an end. With the rise of advanced technology and the increasing sophistication of cyberattacks, it’s clear that passwords are no longer sufficient to keep our data safe.

The problems with passwords are numerous. First and foremost, passwords are easily guessable, hackable, and can be stolen. Common passwords like “password123” or “qwerty” are notoriously weak, and even stronger passwords can easily be compromised by skilled hackers.

In fact, studies have shown that more than 80% of data breaches are due to weak passwords according to Verizon’s 2022 Data Breach Investigations Report.

Secondly, passwords are a hassle to remember. Most people use the same password across multiple accounts, which means that if one password is compromised, all of their accounts are at risk. Alternatively, people will use different passwords for each account, but then struggle to remember them all, resorting to pen and paper, sticky notes, and frequent password resets.

But perhaps the biggest problem with passwords is the trust gap that they create. When we enter our passwords online, we trust that the website or app is secure and that our information won’t be stolen or misused. Unfortunately, this trust is often misplaced. With the increasing frequency of data breaches and the prevalence of phishing scams, it’s hard to know who to trust online.

The Rise of AI

To top it off, the threat of AI to passwords is real and growing. As AI technology continues to advance, it is likely that we will see even more sophisticated attacks on password security. Brute force attacks, dictionary attacks, social engineering attacks, and password cracking algorithms are all ways in which AI can be used to compromise passwords.

Brute force attacks involve using AI algorithms to try out various combinations of characters in a password until the correct one is found. With the ability to process large amounts of data quickly, AI can significantly speed up the process of cracking passwords. Similarly, dictionary attacks use AI to test a password against a pre-built list of commonly used passwords, dictionary words, and combinations of them. This is exacerbated by the speed of AI algorithms that can make these attacks more effective.

Social engineering attacks involve using AI to generate highly convincing phishing emails or messages that trick users into revealing their passwords, while password cracking algorithms quickly identify patterns in password data and predict likely combinations of characters. This can make it easier for attackers to guess passwords that are based on easily guessable patterns such as birthdays, names, or common phrases.

So, what’s the solution? The answer seemingly lies in Web3. By leveraging blockchain technology, decentralised platforms allow for secure and transparent transactions, creating a new model of fraud-prevention without the need for passwords.

Web3 Fraud Prevention

Web3 is rapidly making its way into the mainstream via new decentralised models that promise to replace outdated centralised technologies. The blockchain creates a trustless environment, where users can verify the authenticity of the transactions they are making. For example, instead of logging in with a password, Web3 uses private keys that are unique to each user. This private key is securely stored on the user’s device, and is used to verify their identity and authorise transactions.

This system seemingly eliminates the trust gap that exists with passwords, as users are no longer relying on a third party to keep their data safe. Instead, they are in complete control of their own data, and can verify the authenticity of any transaction before it takes place.

But as more and more people flock to these Web3 platforms, the need for comprehensive Web3 fraud prevention only becomes compounded. Unfortunately fraudsters are taking advantage of the lack of regulation and anonymity to commit scams and hack exchanges.  We see news of this on a daily basis.

The need for secure and transparent systems is perhaps even more important in Web3 – where individuals are told to trust nothing, and verify everything.

A Shift in the Value Chain

Fortunately, there is a solution. A number of Web3 models have been created with the intention of giving ownership and control back to the user without the need for passwords. Self is a decentralised trust network that has developed a unique approach to fraud prevention that combines transparency and automation to create a secure and trustworthy environment for Web3 transactions that makes us equal, powerful and safe.

Unlike traditional auditing, which can be prone to manipulation and deception, Self leverages technology to ensure that all entities involved in a transaction or interaction are precisely who they claim to be. This level of transparency is particularly effective in decentralised systems, where it is easier to ensure that all parties are accountable for their actions and data remains with the person it belongs to.

Many emerging Web3 platforms and networks believe in a shift in the value chain where consumers benefit from their own data rather than the companies that use this data. By utilising cryptography to enable decentralisation at scale, users can be assured of  the security and trustworthiness of the system – keeping data in their hands and not in anyone else’s.

Ultimately the era of passwords is coming to an end, and with the rise of advanced technology and the increasing sophistication of cyberattacks, it’s clear that passwords are no longer sufficient to keep our data safe. It’s time for passwords to be replaced by cryptography via robust Web3 fraud prevention platforms that offer a solution to the problem of online trust. The creation of a trustless environment where users have more control over their data and online interactions is closer than it has ever been. While Web3 may still be in its nascence,  It is time to embrace this new technology and say goodbye to the relics of passwords once and for all.