The Big Picture of Web3 Security

In the wild world of Web3, security isn’t just a suggestion—it’s a life-or-death matter for decentralized finance (DeFi) protocols. With frequent exploits lurking around every corner, startups must prioritize security from day one to avoid facing the consequences of a major breach.

Insights from the Experts

At the recent Israel Crypto Conference, we caught up with Shahar Madar, the head honcho of security products at Fireblocks. He emphasized that a common pitfall for new startups is the tendency to postpone security protocols in favor of rapid growth. Unfortunately, this leaves them vulnerable to those speed-demon hackers looking for their next big payday.

Open Source: A Double-Edged Sword

“Let’s not sugarcoat it,” Madar noted. “For attackers, every line of open-source code is an all-you-can-eat buffet.” Developers should understand that while transparency is a virtue, it also invites malicious actors to scrutinize their systems at will.

Questions to Guide Your Security Framework

Madar laid down some crucial questions that startups need to ponder:

• How do you vet your team?
• What kind of access control measures are in place?
• How prepared are you for an incident?

These queries might seem a tad mundane, but they lay a sturdy foundation for security practices.

Two Key Ingredients for Security Success

Access Control: Because Not Everyone Is a Superuser

Madar stressed that the power to deploy smart contracts shouldn’t rest in the hands of just anyone at the company. “Imagine a business developer tackling smart contracts—sure, they might mean well, but that’s not how you build a secure framework.”

Mapping Out a Game Plan: Thinking Like a Hacker

Next on the agenda is crafting a solid game plan. Madar recommended developers engage in “tabletop exercises.” This means organizing brainstorming sessions to imagine the worst-case scenario: how would you exploit your platform? “Start small, experiment, and put your defenses to the test before someone else does it for you,” he advised.

A Recent Reality Check

The warning bells couldn’t be louder, especially since the Web3 space witnessed significant compromises this past week. The Arbitrum-based Jimbos Protocol took a staggering $7.5 million hit, while the DeFi protocol WDZD Swap faced a $1.1 million exploit. Just a friendly reminder of why security should be at the forefront of every startup’s mission—because waiting until the hacker knocks at your door is simply not an option.