Web3 Safety Toolkit

Web3 is celebrated for its decentralization, immutability, and useful smart contracts. However, despite these advanced features, blockchain users still face significant vulnerabilities related to cybersecurity.

ChainGPT has developed this simple guide to help users navigate these threats and equip themselves with effective defensive tools.

Common Threats to Web3 Users:

• Phishing attacks trick users into giving up sensitive information, such as private keys and seed phrases, which are crucial for transactions and wallet recovery. For instance, in 2021, over 6,000 Coinbase users were tricked into revealing their details through sophisticated phishing schemes.

• Malicious Smart Contracts: These are coded to misappropriate funds unsuspecting users deposit. Examples include approval contracts that grant hackers access to your tokens, liquidity pool contracts that block fund withdrawals, and deposit contracts that divert your crypto to a hacker’s wallet.

• The 51% Attack: Occurs when a group controls over half of a blockchain's computing power, allowing them to alter transactions and disrupt network integrity. This threat is particularly severe for smaller networks.

• Crypto-jacking: Crypto-jacking involves unauthorized use of someone else’s computing resources to mine cryptocurrency. This type of attack leads to performance degradation and can persist undetected.

• Advanced Persistent Threats (APT): These attacks are complex and are conducted over long periods, aiming to steal sensitive data from networks or subtly disrupt operations.

Tools for Enhanced Security:

• Hardware Wallets: Essential for anyone serious about cryptocurrency, these devices store private keys offline, safeguarding them from online thieves. Obtaining these wallets from reliable vendors and following a rigorous setup process is critical.

• Secure Browsers and VPNs: Secure browsers help to minimize personal data exposure online, while VPNs are indispensable for securing data on public networks and encrypting connections to prevent interception.

Best Practices:

• Remain vigilant and conduct regular security checks on websites and emails to avoid phishing and other scams.

• Keep your security software and hardware up to date to defend against the latest threats and vulnerabilities.

By embracing these security practices, users can enhance their protection against the evolving risks in the Web3 landscape. We recommend CryptoGuard, our AI-powered Web3 security tool that fights back against hackers and protects your assets.