More Web3 security services and platforms are entering the crypto market, providing security and risk management solutions for protocols and users. While there can never be too many security tools, we’d like to provide a shortlist that both projects and consumers may use when seeking the Web3 security services available on the market.
Security auditors & auditing teams
Most people associate Web3 security services with security audit teams and individual auditors. Companies like Trail of Bits, Quantstamp, and OpenZeppelin have conducted hundreds of security audits for various Web3 apps and earned the trust of the worldwide blockchain community.
Most protocols are subjected to a security audit before releasing the application or new feature to the mainnet; external auditing teams may discover holes in the protocol’s logic or minor issues that developers overlooked or ignored. Auditors scrutinise the code, comparing it to various economic and technological attack vectors and assessing if the protocol’s logic is sound. Some auditing teams also perform continuous audits, analysing code modifications periodically and providing team updates on the code’s safety.
Bug Bounty Platforms
Next on our list are bug bounty programs and platforms. Custom bug bounties, grants, bug bounty platforms such as Immunefi, and white hat hacking – they all serve as an ultimate incentivised code testing and auditing. Bug bounties serve several purposes:
- Recruiting new developers. Bug bounties can also be used as a marketing strategy to attract developers and testers to the protocol, pique their interest in the project’s concept, and lead to part-time or full-time contributions.
- Including the community in the process. Who said bug bounties had to be limited to smart contract testing? You may also make easier assignments by asking the community to test the application’s frontend or UX flow. Fewer UI issues and more ideas from actual users are the dev team’s dream.
- Stress-testing. An open-source code with a public bug bounty may result in stress testing as more individuals (both good and malicious actors) become aware of your protocol. While good actors may merely test it, malevolent actors may launch a DDOS attack or try to exploit smart contracts and steal the funds. Nonetheless, stress-testing can help you find problems early on, and patch issues before the protocol’s liquidity increase.
Risk Management Solutions
Finally, there are risk management tools and platforms. Economic attacks are growing more complicated and sophisticated, and not all projects in the early phases of development can accommodate in-house risk management and finance teams. This is where risk management platforms such as Gauntlet, Apostro, ChaosLabs come in. They may be utilised as instruments for continuous monitoring and risk assessment. They assist in defending the protocol from volatile market conditions and economic threats by filtering and analysing blockchain and market data. All DeFi protocols, regardless of size or development stage, should use them as an additional security level.
