Cybersecurity Challenges In The Next Crypto Cycle

According to Blockworks, as the cryptocurrency market gears up for its next cycle, cybersecurity remains a significant challenge. Andy Beal, founder of Forta, emphasized the growing importance of security during periods of market growth. He noted that as the market expands, the potential rewards for attackers increase, making cybersecurity a critical concern. Beal highlighted that with the anticipated influx of retail investors and new participants during a bull market, there is an increased risk of end-user attacks. These newcomers may not be as aware of security threats, making them easy targets for malicious actors. Beal suggested that the crypto cybersecurity landscape might start to incorporate fundamental principles from general cybersecurity practices. Forta recently introduced Forta Firewall, a Web3 adaptation of traditional firewalls, utilizing custom AI to secure transactions and prevent malicious activities. Beal believes that more conventional cybersecurity tools and services, such as firewalls, will be applied to Web3 environments. He explained that while the industry is adept at detecting threats, the challenge lies in preventing them, which Forta aims to address. Beal expressed that it is unsurprising to see the adoption of proven Web2 security methods in the Web3 space, as the underlying internet infrastructure remains the same. The introduction of a financial layer in Web3 does not negate the applicability of established security concepts. Firewalls, which have evolved over the past three decades, are now being integrated into Web3, benefiting from years of design, learning, and innovation. This development represents another potential use case for AI in the crypto sector, as traditional cybersecurity measures are adapted to meet the unique challenges of the Web3 environment.