With the web3 era soon upon us, the fight against digital fraud has never been more important. The boom in decentralized apps and applications built on top of open-source software has opened up a number of opportunities in the online space, but it’s also opened up lots of new vulnerabilities. We prepared a guide after talking to Faisal Abidi, Co-founder of RNF Technologies. This guide to web 3 and digital fraud will show you how to avoid becoming one of the next victims of an increasingly sophisticated breed of cybercriminals.
Is Digital Currencies Safe?
Let’s begin with what we know. Web3 is well on its way, with currencies like ether and bitcoin already up and running. Developers are flocking to build apps for these decentralized applications (dApps), meaning that decentralized commerce is imminent. But will dApps be safe? What about fraud? How can web3 developers effectively avoid scams like phishing or digital fraud? Is web3 ready for prime time?
How Badly Are People Getting Scammed?
In short, people are getting scammed a lot. ICOs raised an estimated $4 billion in 2017 (more than double what they did in 2016) , with only 8% of that money going to fraudulent projects. A third of all ICO-funded startups never even make it to production, which means that you have roughly a one-in-four chance of contributing to a scam when you participate in an ICO. That’s nearly as bad as buying a used car!
What are Some Proven Ways to Protect Yourself?
Dealing with digital-era fraud is a lot like dealing with more traditional forms of criminal activity, except that instead of physical locations, cybercriminals target virtual ones. The most important thing you can do to protect yourself is to be smart about where you shop. If something looks too good to be true, it probably is. Make sure you’re making purchases from trusted sellers and platforms—and don’t hesitate to report anyone who makes what seems like a shady offer or attempt at cybertheft.
The Way Forward.
Decentralized applications have always promised to bring a new level of security to Internet technology. With decentralized networks, users hold their own private key, which means there is no central authority that can be breached and that information can never be lost—security built into blockchain at its core. However, even with these features in place, there are still some unique challenges inherent to decentralized applications that are more difficult to secure than websites or apps built on centralized servers.
