Essential Security Strategies for Web3 Startups: Insights from Fireblocks

The Critical Role of Security in Web3

In the rapidly evolving Web3 landscape, security has become a top priority as decentralized finance (DeFi) protocols face increasing threats. Startups in this space are not just building innovative solutions; they’re walking a tightrope over a pit filled with hackers eager to exploit any vulnerability.

Procrastination and Its Perils

Shahar Madar, the head of security products at Fireblocks, recently pointed out an alarming trend during a talk at the Israel Crypto Conference. Many new startups often delay implementing essential security measures in favor of growth. This tendency can lead to disastrous consequences, exposing them to potential breaches and financial losses.

“Everyone sees what they’re doing — the code is usually open source.”

Madar’s insight underscores a crucial point: developers need to adopt a security-first mindset from day one.

Fundamental Security Questions to Ask

When devising a security framework, Madar recommends asking the right questions. Consider the following:

• How do you vet your team?
• What access controls are in place?
• How do you prepare for incidents and conduct infrastructure maps?

These questions can help startups identify potential weaknesses in their security protocols and begin addressing them proactively.

Two Essentials for Web3 Security

Madar highlighted two key components that every Web3 startup must prioritize:

1. Access Control

Not everyone should have the same level of access to a project’s resources. For instance, a business developer might need to be kept from deploying smart contracts—not because of malicious intent, but to maintain a security boundary. This control can help prevent accidental or unauthorized changes that could cripple a project.

2. A Comprehensive Security Game Plan

Create a detailed plan to map out how security will be integrated into your project. Developers should think like hackers to foresee vulnerabilities. Madar suggests starting small with exercises that simulate attacks and scheduled meetings to discuss security strategies.

Staying Ahead of Attackers

The reminders could not be more timely, as the Web3 industry continues to experience significant breaches, including a staggering $7.5 million hack that occurred at Jimbos Protocol. Protecting against such exploits requires a proactive approach. As Madar wisely pointed out, ‘the attacker is watching you; the attacker is waiting for you.’