Web3 is the next stage in the evolution of innovation in the world of technology. It not only presents a new approach for defining user experiences on the internet but also provides a completely different perspective on the role of users. The popularity of web3 tools such as web3 wallets, IDEs, and libraries is expanding continuously as web3 developers experiment with new ideas.
Examples of Web3 solutions such as NFTs, metaverse, DeFi, and dApps have changed the way people use conventional applications. For instance, identity management systems could use decentralization. Users could use decentralized identities for identity verification across different applications rather than creating new sign-in credentials.
However, the advantages of Web3 could not overshadow the vulnerabilities in Web3. Therefore, businesses and users adopting Web3 solutions must know about the top Web3 security tools for safeguarding their valuable assets. It is also important to understand the necessity of learning about threats to Web3 security. Let us find out more about the most popular Web3 security tools and the best practices for Web3 security.
Why Should You Learn about Web3 Security Tools?
Before learning about Web3 security tools, you must have doubts regarding the reasons for the same. How would you benefit from awareness of Web3 security tools? You can find the ideal answers to such questions in the statistics about existing state of web3 security. The Global Web3 Security Report 2022 & Crypto Regulatory Compliance Research study provided insights into the impact of Web3 security incidents in 2022.
The study showed that the total number of major attacks in Web3 was 167 in 2022. You might assume that a Web3 security tools list would grow only because of the hype around Web3. However, you should note the financial impact of Web3 security attacks. In 2022, the financial burden of Web3 security attacks amounted to $3.6 billion.
Alarmingly, the impact of Web3 security attacks continues to grow stronger with each passing year. The total losses due to Web3 security attacks in 2021 amounted to almost $2.44 billion. If you consider all other crimes and scams in the world of crypto, the losses for 2022 would be over $13.7 billion.
Without the best Web3 security tools in action, it would be difficult to improve trust in Web3. Furthermore, recent research reports have pointed out that Web3 security lapses led to losses of $655.61 million in the first six months of 2023. Therefore, it is important to learn about Web3 security tools and how they could help in fighting against security risks.
Build your identity as a certified blockchain & web3 expert with 101 Blockchains’ Blockchain & Web3 Certifications designed to provide enhanced career prospects.
What are the Top Threats to Web3 Security?
Web3 is a playground for transforming innovative concepts into practical applications, with better opportunities for empowering users. However, Web3 could achieve mass adoption only when users trust Web3 with safety of their data and finances. Therefore, it is important to look for Web3 tools that could safeguard users against Web3 security risks.
Interestingly, you could learn about the common threats to Web3 security for identifying the right tools to protect yourself against specific risks. Malicious agents in the domain of Web3 have shown promising levels of creativity through the design of new types of attacks. Here are some of the most common threats in the field of Web3 security.
-
Phishing Attacks
Phishing attacks are one of the most common types of attacks in Web2. Hackers have adapted phishing attacks to the Web3 market to catch users off guard and steal their assets or data. Most of the top Web3 security tools help in proactive detection of phishing scams. The general approach for phishing in Web3 involves replication of domain names and design of official websites. For example, you could sign in to a phishing website that looks like the crypto exchange you use regularly.
Hackers could also implement phishing attacks by tricking users into signing messages, which are similar to authentication requests or sign-up for special incentives. Once the victim signs the message or clicks on the sign-up link, they are likely to lose all the assets from their Web3 wallet.
-
Smart Contract Vulnerabilities
Smart contract vulnerabilities are a major problem for Web3 developers and users. The use of smart contracts in Web3 applications creates the necessity for learning about the impact of smart contract vulnerabilities. Web3 hackers could embed malicious functions in the logic of smart contracts by exposing certain vulnerabilities. For instance, hackers could introduce the ability to stop or restrict a transaction completely.
The best Web3 security tools could help you only if you have a flawless smart contract codebase. Web3 hackers could also exploit vulnerabilities in the contract’s logic or other errors, such as default visibility. Awareness regarding the importance of smart contract security is also a crucial aspect of ensuring Web3 security.
Excited to learn about the critical vulnerabilities and security risks in smart contract development, Enroll now in the Smart Contracts Security Course!
-
Rug Pull Scams
The notoriety of rug pull scams is only equaled by the frequency of the scams. Who would miss a new crypto token that might surpass Ethereum in the next few months? Every optimistic person in the world of crypto would pray for the success of a new project. However, rational thinkers would look at the ‘unreal’ promise claimed by the new crypto token. What is the utility of the new crypto token? Is it backed by a reserve? All of these questions would play a crucial role in ensuring your safety against rug pull scams.
In a rug pull scam, fraudulent developers would create hype around new projects. Some of these rug-pull scams also bring celebrities on board to amass a bigger target audience. Once they have gained the trust and money of investors, the fraudsters could easily run away with money of investors.
-
Fake Airdrops
The importance of a Web3 security tools list becomes clearly evident in the face of attacks such as fake airdrops. It is a new type of Web3 attack that involves fooling people into entering their credentials on phishing websites. Airdrops have become an integral part of marketing in the Web3 world. New Web3 projects use free airdrops to create interest among the target audience. However, hackers use this as an opportunity to send emails or text messages claiming to be airdrops.
The general scenario for fake airdrops involves a link in the email or text message. The mail would claim that the user has been selected for a free airdrop, and they would receive free tokens. Users who click on the link for the ‘free airdrop’ will be directed to a phishing website. Once they enter their wallet credentials, users can bid goodbye to the assets in their wallet.
Curious to develop an in-depth understanding of web3 application architecture? Enroll Now in Web3 Application Development Course!
Most Popular Web3 Security Tools
The threats to Web3 security and the extent of their impact showcase the urgency of learning about Web3 security tools. However, it is important to choose the right Web3 tools that could provide real-time safeguards for users with easier accessibility. Let us take a look at some of the popular Web3 security tools that could strengthen trust in Web3 solutions.
-
Fire
The first addition among the top web3 security tools is a Chrome browser extension, which ensures strong safeguards for crypto transactions. Most important of all, it can provide a transaction simulation with potential risks to review the results before taking decisions. As a result, Fire could help in resolving the threats due to unsanctioned approvals and phishing contracts. The browser extension helps in interpretation of signed messages alongside displaying the assets that would be transferred inside and outside the wallet.
Fire also offers the promising advantage of specifying the type of transaction alongside the gas fees for the transaction. Furthermore, Fire also helps in checking the token approvals available to dApps. As a result, you could identify the projects which could access your assets. Web3 users could directly remove the undesired approvals in the extension itself.
-
Stelo
The in-depth testing of transactions is an obvious advantage of Web3 security tools. However, Stelo stands out from the crowd with unique features such as blacklists of addresses and websites, or custom allow lists. These features ensure that Stelo can ensure faster verification of transactions. Web3 users can study the detailed report on transactions before making their decision to move ahead with the transaction.
-
Blockem
Interestingly, Blockem also features the transaction simulation mechanism like other popular Web3 security tools. The transaction simulation could help users view the results they should expect upon approving a particular transaction. Blockem is one of the trusted Web3 tools for security, as it could help in analyzing a specific address with a few simple steps. It could help in performing a detailed evaluation of smart contracts underlying a Web3 solution without initiating any transactions.
Learn the fundamentals, challenges and use cases of Web3.0 blockchain from the E-book: An Introduction To Web 3.0 Blockchain
-
Web3 Antivirus
It could also provide instant warning to users about security threats, thereby ensuring faster response. One of the interesting highlights of the reports by W3A is the color-coded reports. The high risks are represented in red, medium-level risk is represented in yellow, and low risk is represented in green.
Web3 Antivirus provides some interesting insights in its analysis reports, which enable better decision-making. Apart from the complete transaction details, the W3A reports also highlight smart contract data and associated risks. Web3 Antivirus is one of the most formidable additions to a Web3 security tools list on the grounds of its ability to identify malicious code patterns in smart contracts. Furthermore, W3A helps in detecting dangerous signing requests, ice phishing, poisoning attacks, and proxy contracts.
The feature of W3A also points to the extra mile it travels to help you with Web3 security. It also traces all the linked contracts to find any potential vulnerabilities in the chain of contracts. As one of the best Web3 security tools, Web3 Antivirus provides in-depth analysis of tokens alongside a specialized module for NFT analysis. Web3 Antivirus also features a dashboard that helps users track their Web3 activity.
-
Pocket Universe
Subsequently, users would receive notifications about transaction details alongside an overview of the potential issues that could emerge from signing a transaction. It is a useful Web3 security tool for detecting phishing websites, fake NFT collections, honeypot schemes, and wallet drainers.
Start your journey to becoming an expert in Web3 security skills with Web3 Security Expert Career Path
Bottom Line
The details of the top Web3 security tools provide a collection of best ways to fight against web3 security issues. You should familiarize yourself with Web3 fundamentals and understand how it works to understand the scope of damage due to Web3 security threats. Web3 security risks could delay the mass adoption of web3 technologies and affect user trust in web3 technologies. Learn more about web3 security tools and build your career in web3 security with credible training resources now.
*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!
