When we talk about Web3, it often sounds like a futuristic vision of the internet that could revolutionize our lives. This isn't far from the truth, as its core concepts aim to decentralize and establish transparency in relationships between users, platforms, and developers.

In simple terms, Web3 is an upgraded version of the traditional internet that we are all used to. The main difference lies in the absence of a third party when using it. This means that no government agencies or large corporations are needed to securely use assets, entertainment, or educational resources.

This new phase of the internet offers more freedom, opportunities, and control over development in the digital world, but it also brings new challenges. First and foremost, security issues always require careful preparation and immediate solutions.

Real-World Cases of Fund Loss in Web3

The recent news of the imprisonment of Sam Bankman-Fried, the founder of the bankrupt cryptocurrency exchange FTX, shook the community. He was sentenced to 25 years in prison for stealing $8 billion from clients. According to [REUTERS], the 32-year-old billionaire was found guilty after a lengthy trial on seven counts of the Criminal Code for conspiracy and fraud that occurred after the collapse of FTX in 2022. Prosecutors in the case confirmed that it was one of the largest frauds in US history.

This case is just one example of how critical security is in Web3. There are other notable instances where users have lost substantial amounts of money due to various vulnerabilities and scams:

The DAO Hack

In 2016, the DAO, a decentralized autonomous organization, was hacked due to a vulnerability in its smart contract. Hackers exploited this flaw to siphon off $60 million worth of Ether, leading to a hard fork of the Ethereum blockchain to mitigate the damage.

Parity Wallet Hack

In 2017, a bug in Parity Wallet's multisig functionality led to the freezing of $300 million worth of Ether. This incident highlighted the importance of thorough security audits and robust coding practices.

Mt. Gox Collapse

Before Web3 fully matured, the Mt. Gox exchange collapse in 2014 resulted in the loss of 850,000 Bitcoins. This event underscored the importance of security in cryptocurrency exchanges and custodial services.

SLAM: Your Framework for Staying Safe

The transition to Web3 comes with its share of risks, but by following the SLAM framework, you can better protect yourself from phishing and potential attacks:

S — Source of information: Be cautious of emails or messages from unknown senders. Verify the source before engaging.

L — Links: Avoid clicking on suspicious links. Ensure the URL is correct, especially when dealing with exchanges or wallets.

A — Accounts, Activities, Approvals, Authentications: Regularly check your wallet activities and permissions. Ensure you’re not granting excessive access to unknown platforms.

M — Mind: Use strong, complex passwords and never share your private keys. Regularly update your security measures.

Leading by Example

At Buidly, we understand that robust technology is crucial for security. Over the years, we've launched more than 16 products without a single exploit. Our success is built on rigorous security practices, continuous audits, and a deep commitment to protecting our clients’ assets.

Our approach combines state-of-the-art security measures with user-friendly design, ensuring that our solutions are not only secure but also easy to use. By leveraging advanced cryptographic techniques and implementing comprehensive security protocols, we help you navigate the Web3 landscape confidently.

Conclusion

Web3 promises a new era of the internet, free from centralized control. However, this freedom comes with security challenges. The recent FTX scandal highlights the importance of user vigilance against scams during the transition to Web3. SLAM (Source, Links, Accounts, Mind) offers a framework to stay safe. Be wary of unknown senders, don’t click suspicious links, and monitor your wallet activity on DApps. Strong passwords and keeping your private keys secure are crucial as well.

At Buidly, we are dedicated to leading the charge in Web3 security. Ready to enhance your digital security? Visit Buidly and let’s build a secure future together.

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