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Arnaud Deblander
Jul 12, 2022 7:00 AM

With the recent liquidity crisis that is ongoing, it is only right that we delve into the security aspect of Web3. No doubt that Web3 is the next big thing in the tech movement but we should also bear in mind that it is still in its infancy stage. For those of you who have doubts about what Web3 is, do give our earlier blog post on the explanation of Web3 a quick read.

What is web 3.0?

Web 3.0 is the third generation of Internet services for websites and applications. The goal is to leverage machine understanding of data to deliver a data-driven semantic Web, with the ultimate goal of creating more intelligent, connected, and open sites.

As Web 3.0 is not yet implemented, its definition is not really established. The transition from the original Web, Web 1.0, to Web 2.0 took more than a decade. For Web 3.0, the full implementation and transformation of the Web are expected to take as long or longer.

However, the technologies that some believe will constitute and ultimately define Web 3.0 are already being developed. Along with the advent of smart appliances, the use of wireless networks and the Internet of Things (IoT) are two examples of the impact of Web 3.0 on technology.

Current use 

In the world of crypto, Web3 can be broadly categorized into two main aspects: in the arena of DeFi and NFTs. The main players in DeFi have very quickly understood the importance of Web 3.0 and are therefore the main players, as are the NFT marketplaces. Financial applications represent for the moment the majority of web 3.0 applications, and of the crypto sphere as a whole.

Web 3.0 is still at a very early stage and there is no doubt that there is a huge potential for growth, especially when you see the size of the investments made.

What about the security?

As in all new things, web 3.0 is far from perfect and it still has some flaws, especially in terms of security.

Cyber-attacks are indeed one of the major risks of any protocol willing to implement web 3.0 and DeFi protocols as a whole. These attacks can take the form of a vulnerability in the code directly, allowing a hacker to enter through a backdoor and steal funds.

It can also take the form of a vulnerability in the business logic, which is the basis of the "flash loan" attacks that allow borrowing on other platforms to change the price of a token on another pool. These attacks allow them to repay the loans in no time and drain the liquidity of the pool, often leaving with a colossal sum. We remember the Cream Finance hack with more than $130 million stolen. 

In the future, just like DeFi 2.0, web 3.0 will have to innovate on transparency and security. DeFi can never become mainstream if such security flaws exist. If this sector is to attract institutional capital, security will have to increase, that's for sure.

How does SuperBots perform its security due diligence?

SuperBots, being the first and only automatic algorithmic trading protocol in DeFi, is part of the Web3 revolution. Given that the main attraction of DeFi is decentralization that allows owners to take control and ownership over their assets, SuperBots places high priority when it comes to security and protecting the assets and interests of its users. 

That's why SuperBots is constantly working on improving its security system and it is currently upgrading its vault system at the time of writing this. These vaults are powered by Smart Contracts and as a security measure, the team is constantly working on improving them to avoid any “lapse” in security. 

This explains why SuperBots surrounds itself with the best and has had a rigorous audit performed by the company SolidProof. SolidProof is a company specialized in smart-contract audits that are based in Germany. The audit is transparent and the reports are available for all to check. You can access them here

In addition, SuperBots adopt these security best practices: usage of multisig for all contracts, the Smart Contracts are verified on BscScan so that you know and can be sure that what you see is what you get. 

SuperBots Bug Bounty program with Immunefi

The audit is essential and a good start but SuperBots don’t just stop there. With the recent collaboration with Immunefi, a bug bounty program was set up. In this program, a reward of $8,000 is to be won if a major vulnerability was to be discovered. If you are a white-hat hacker, we invite you to take a look here: https://immunefi.com/bounty/superbots/

The bug bounty program is focused on preventing these issues on the SuperBots smart contracts and app: direct theft of any users’ funds, whether at rest or in-motion (other than unclaimed yield), permanent freezing of funds, temporary freezing of funds for at least one day, manipulation of tokens representing shares.

Conclusion

The DeFi ecosystem, which is the most represented part of web 3.0, needs to innovate in terms of security for decentralized finance (DeFi) to have a chance to compete with traditional capital markets. 

Nevertheless, with every innovation, there are always new ways to circumvent it. This will be less and less true with time and the growing maturity of the crypto market but it remains a fact, that nothing is ever 100% safe.

On your side, as an investor, you can focus on protocols or platforms that have audited security and bug detection systems in place such as SuperBots.

Above all, the golden rule applies to risk diversification. Never put all your eggs in one basket.

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Tags

  • web3.0
  • liquidity crisis
  • Immunefi