AN INDUSTRY UNPREPARED FOR THE COMING BULL RUN AND THE RISING THREAT ACTORS

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11 Jan 2024

An Industry Unprepared for the Coming Bull Run and the Rising Threat Actors

The sector needs to have a more stable and robust structure instead of merely chasing the bull run.

The year 2024 may mark the beginning of a new bull run for the cryptocurrency world. However, considering the security vulnerabilities experienced in the past and the increasing threat actors, this potential upswing poses significant risks for the industry. Security breaches in the past year, especially the escalating activities of state-sponsored hacker groups and independent hackers, further amplify these concerns. This situation highlights the need for the sector to possess not only the pursuit of a bull run but also a more stable and robust structure.

Risks of the New Bull Run:

A new bull run, coupled with increased liquidity and investor interest, can make the sector a more attractive target. This poses a substantial risk, particularly for projects unprepared in terms of security. Major hacking incidents in the past underscore the devastating effects such attacks can have on the sector. Therefore, the industry must adopt a long-term and sustainable growth strategy instead of solely chasing short-term gains.

Threat Actors: State-Sponsored and Independent Hackers
Threats to the cryptocurrency ecosystem can be categorized into three main groups: state-sponsored hackers, independent hackers, and third parties. State-sponsored hackers, especially utilizing social engineering and open-source intelligence, attempt to gain access to critical data such as API keys and central private keys. Independent hackers usually target vulnerabilities in smart contracts, while vulnerabilities in third-party services also pose significant risks.

Attacks carried out by state-sponsored groups, independent hackers, or through third parties emphasize the need for the industry to implement more comprehensive and effective security measures.

Causes of DeFi and Blockchain Security Vulnerabilities:

The fundamental causes of security vulnerabilities in DeFi and blockchain ecosystems are directly related to their rapid development and complex structure.

The main reasons for these vulnerabilities include:

Complex and Untested Codes: New technologies and smart contracts are often released to the market without sufficient testing, leading to potential security vulnerabilities.
Challenges of Decentralized Structure: Decentralized structures are not supervised by a central authority, making it challenging to detect and prevent security breaches.
User Errors and Lack of Education: Insufficient familiarity of users with security practices on cryptocurrency and DeFi platforms can lead to security vulnerabilities.
Vulnerabilities in APIs and Third-Party Services: DeFi and blockchain platforms integrate with various APIs and third-party services. Security vulnerabilities in these services can jeopardize the entire system.
Social Engineering and Phishing Attacks: Social engineering and phishing attacks aimed at obtaining users' personal information pose serious security threats.

Strategies for DeFi and Blockchain Protocols:

DeFi and blockchain protocols should follow the following strategies as they prepare for the upcoming bull run:

Internal Security Structuring: Projects should strengthen their internal structures in terms of security in addition to rapid development. This involves creating and implementing security policies, establishing security teams, and organizing continuous training programs.
Comprehensive Security Planning: Comprehensive security planning should cover areas such as account, key, API, smart contract, and employee security. These plans should include risk assessments, regular security audits, and emergency response plans.
Security Integration: Security should be integrated into development processes. This includes conducting security checks during code development stages and implementing continuous security testing.
Consultation and Support: Projects struggling with security issues should seek guidance from reliable companies or individuals. External expert opinions and experiences can help strengthen the project's security structure.

These strategies will assist DeFi and blockchain ecosystems in preparing for the upcoming bull run more securely and contribute to the sector's sustainable growth.

Conclusion:

As the cryptocurrency and DeFi sectors prepare for the upcoming bull run, serious steps must be taken in terms of security. The increased activities of state-sponsored hacker groups and independent attackers highlight the industry's vulnerability to security. Rapid development, liquidity, and popularity can make projects targets. Therefore, security is more critical than ever. Learning from past mistakes, the industry should build a safer and more sustainable future.

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