Joining forces to strengthen security in the Web3 space

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    As the global digital landscape advances, the world continues to witness rapid growth of the Web3 ecosystem across regions. However, it is common to see new challenges and risks in fast-growing sectors. For example, the Web2 boom came with its own security concerns, such as phishing attacks and data breach concerns.

    The early Web3 industry is no exception. As the ecosystem evolves, so too does Web3 cybercrime, and criminals are becoming more sophisticated in their attacks. As such, it is critical that the country has a secure and stable he Web3 infrastructure that can support continued growth while eliminating the risk of cyber and financial crime.

    The public sector, especially regulators and law enforcement agencies, play a key role in building the regulatory framework and establishing the foundations of Web3 security within the country. The private sector, including cryptocurrency exchanges and data analytics firms, can complement their knowledge and expertise in leveraging blockchain technology for research. Therefore, by increasing public-private sector cooperation, the Web3 industry can effectively develop a more comprehensive security strategy to fill existing gaps in the system while reducing vulnerabilities to cyberattacks and cybercrime. can be developed effectively.

    A Greater Integrated Effort Between Web3 Organizations and Law Enforcement

    When most people think of Web3, play-to-earn games and decentralized finance (DeFi) come to mind first. But what most people don’t realize is that Web3 has enormous potential to enhance cybersecurity and law enforcement. Blockchain technology includes certain properties that can greatly enhance existing investigative techniques if law enforcement agencies know how to leverage and operate with data. For example, a permanent record of every transaction on the blockchain makes it more difficult or even impossible to remove the traces of a digital footprint. This has the potential to make blockchain technology a powerful investigative tool to better track criminals. has worked closely with the anti-money laundering (AML) initiative. Cooperation between the two sectors is expected to increase in 2023. Since last year, an investigation has been conducted by the Indian Enforcement Department (ED) in relation to gaming applications known as E-Nuggets. The game’s creator allegedly launched E-Nuggets to collect money from the public in exchange for in-game rewards before the application’s database was abruptly deleted.

    During the investigation, ED worked with Binance’s investigative team to freeze 276.33 Bitcoins suspected of being used for money laundering. This kind of cooperation between industry players is a prime example of rapid action and efficient exchange of information between the two sectors.

    Educational collaboration for better user protection
    Education is a key component of protection and security in all industries, but especially in fast-growing industries such as Web3. Taking steps towards meaningful and proactive education and training is essential for all players in the industry to maintain high standards in law enforcement and cybersecurity around the world. In recent years, there has been an increasing demand for law enforcement training and workshops that promote the tools and skill sets to combat cybercrime.

    I believe organizations in the Web3 space should play a key role in actively working with the public sector to support research, crime prevention, and capacity building efforts. Through educational collaboration, both the public sector and her Web3 organization can exchange insights to better understand the evolving digital asset landscape in which they operate.

    The Battle for Security in 2023
    As the crypto industry continues to grow in 2023, there is a joint effort and shared responsibility among research departments, law enforcement agencies, Web3 organizations, and individuals to meet security challenges. Web3 organizations must work closely with regulators and law enforcement to create a secure and compliant environment for successful innovation. However, taking steps to improve user education is also a key factor in fighting security crime. Working together across the sector, these efforts will help strengthen security, foster innovation, and ultimately move the industry forward.

    Author is Head of Law Enforcement Training at Binance

    (Disclaimer: Expert recommendations, suggestions, views and opinions are those of the experts themselves. They do not represent the views of The Economic Times)


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