No matter the industry, protecting user data is a top-of-mind concern for any business that collects it. Web3’s focus on decentralization both boosts its security posture and adds unique vulnerabilities, including blockchain’s inherent transparency, the need to secure private keys and potential delays in patching security issues. Further, evolving regulations can leave Web3 companies scrambling to keep up, and as in any industry, social engineering attacks and human error are never out of the picture.
Blending industry-agnostic security strategies with the inherent strengths of Web3 practices and technologies can help companies create a well-rounded defense system for user data. Below, 11 members of Cointelegraph Innovation Circle share practical, effective tips to help Web3 companies provide the security assurance their users expect and deserve.
Make securing user data a top priority from the start
When building a company from the ground up, some phases require a certain “fake it until you make it” ethos that’s often necessary for survival. However, securing user data is not an area to apply such logic to or to put on the back burner in lieu of extending proper resources. In any Web3 enterprise, the user base is your bread and butter, and holding their data is a trusted bond. It should not be taken lightly. – Oleksandr Lutskevych, CEX.IO
Hold as little user data as possible
Any Web3 company — or any company, honestly — should seek to hold as little user data as possible. Also, employ decentralized identity tools to let your users hold and control their own data. – Joe Roets, Dragonchain
Disclose your Web3 roadmap to users
Web3 is still a large, ill-defined umbrella. Few companies have embraced true decentralization, a state in which users have more granular control over sharing their data, there’s transparency about how the company processes data, and/or blockchain has become integral. That’s understandable, because companies must manage risk. I think honestly disclosing the company roadmap to Web3 to your users would build trust. – Stephanie So, Geeq
Implement end-to-end encryption
One essential tip for Web3 companies seeking to ensure the security of their users’ data is to prioritize a robust encryption strategy. Implementing end-to-end encryption and strong data-protection measures can help you foster trust and safeguard sensitive information in the decentralized Web landscape. – Vinita Rathi, Systango
Establish a multilayered defense
By combining General Data Protection Regulation compliance with essential cybersecurity best practices and principles such as privacy by design, due diligence and secure development access, Web3 companies can establish a comprehensive foundation for protecting the privacy and security of their users’ data, providing a multilayered defense against potential threats. – Myrtle Anne Ramos, Block Tides
Take advantage of Web3 transparency
Privacy is becoming more important than ever. Web3 companies working to ensure their users’ data is secure need to take advantage of the transparency measures within Web3 to show users that their trust is well-placed. This can be done by giving the users’ data back to them to protect. It’s vital to not only hold the minimal amount of data possible, but also to follow encryption and standard security protocols. – Ilias Salvatore, Flooz XYZ
Show users how their data is utilized
Data privacy is not a Web3-native problem. One of Web3’s primary value-adds is the utilization of a transparent, decentralized on-chain storage system that allows distributed consensus methods to have technical leverage over previous methods. Leverage the transparency of Web3 infrastructure so users can see how their data is utilized — a new feature that previous private technology wasn’t capable of. – Megan Nyvold, BingX
Test and audit your security measures
Make sure that your security measures are the latest that are available in the market. Consider employing white-hat hackers to test your security, and ensure that your security measures are properly audited. You might also want to look at technologies like zero-knowledge proof to avoid risking customer data leaks. – Zain Jaffer, Zain Ventures
Prioritize decentralization and user control
Safeguard the data of users by prioritizing decentralization and user control. Ensure that users’ data is not stored on a single central server or controlled by a single entity. Data can be distributed across multiple nodes in a decentralized network, making it more resilient to attacks and less prone to unauthorized access. – Tammy Paola, Zerocap
Adopt robust access controls
Internal protocols matter as much as external threats. Even if the system’s underlying blockchain technology is secure, the interfaces, platforms and APIs built on top of it can be vulnerable. Adopting robust access controls, role-based permissions and zero-trust models can shield against potential internal and external data compromises. – Maksym Illiashenko, My NFT Wars: Riftwardens
Add multiparty computation to your security arsenal
Web3 companies must prioritize multiparty computation in their security arsenals. MPC ensures collective data processing without exposing individual inputs. When combined with rigorous end-to-end encryption and consistent third-party security audits, it creates a formidable defense line. In our decentralized digital age, such robust measures are essential to uphold and reinforce user trust. – Tiago Serôdio, Partisia Blockchain
This article was published through Cointelegraph Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration and thought leadership. Opinions expressed do not necessarily reflect those of Cointelegraph.
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