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The data on hacks, scams and exploits is in, and 2022 is already the most expensive year for Web3 on record. Where 2021 saw losses of $1.3 billion, losses were already at $2 billion at the close of June 2022. Extrapolating from these numbers, 2022 is projected to see a 223% increase in the amount lost to hacks, scams and exploits when compared with 2021. Shocking figures, to say the least.
This will no doubt be disheartening for a Web3 community still struggling to find its feet in the context of a bear market. Moments like this require sober and level-headed analysis of how these losses occurred and what the next steps are for anyone working toward mass adoption.
The rise in losses is disheartening, but experience makes clear what needs to happen for Web3 to achieve mass adoption. To do so, it is vital that the community remain clear-eyed about the challenges and opportunities of where things stand right now — the vulnerabilities of the current ecosystem, what they mean for the current state of the community, and the steps that must be taken to reach a secure and stable Web3 future. Here are four of the most critical steps:
1. Understand Web2’s role in Web3 breaches
There has been a significant rise in the number of phishing attacks, with an increase of over 170% when compared with the previous quarter. This increase is frustrating for multiple reasons, not least because phishing attacks ought to be easily avoided, with even naive investors knowing that promises of too-good-to-be-true giveaways from …