Web 3.0’s Cyber Security Problem and the Innovators Doing Something About it
Web 3.0 doesn’t have a universally accepted definition, but it’s an umbrella term for the latest evolution of the web-based world. Integrating everything from machine learning and artificial intelligence to augmented reality and the blockchain, Web 3.0 offers exciting opportunities both for consumers and investors. As with any evolving technology, there are no guarantees of which companies and industries will be the big winners as Web 3.0 unfolds. However, these are the broad categories of investment opportunities that await those looking for a chance to own a part of Web 3.0.
Non-fungible tokens, or NFTs, are one of the building blocks of Web 3.0. These “non-fungible tokens” are digital representations of items that are one of a kind, which can imbue them with value. NFTs are particularly prominent in the art space, with works from notable artists fetching high prices. In March 2021, the artist Beeple sold a digital artwork entitled “Everyday’s, The First 5000 Days” for a whopping $69.3 million. Another NFT project drew $91.8 million at the end of 2021. Overall, the NFT market is exploding, growing from $8.07 million in January 2021 to $4.8 billion just one year later.
The metaverse is an all-encompassing description of the worlds that Web 3.0 will create. Through a combination of augmented reality, artificial intelligence, social media, virtual reality and other technologies, the metaverse will create something of an alternate universe that will in some ways mirror our own. While something close to this already exists in the interactive, high-technology online gaming world, the metaverse will expand upon this base to create entire new worlds. Big-name companies are already lining up to be players in the space, and even social media pioneer Facebook recently changed its official business name to “Meta Platforms” to reflect this shift.
Cryptocurrency is the “financing arm” of Web 3.0. Crypto is already used to purchase NFTs, land and other objects in the metaverse, and developers see it as the financial engine of the future. Fintechs envision a future parallel banking system in the metaverse, where you can use cryptocurrency to buy or fund anything that you do in the physical world. In other words, you may end up using cryptocurrency to buy a car or a house in the metaverse, or to purchase an avatar. Cryptocurrency can also be used as a straight investment vehicle, as it is currently, although many market participants would dub it a speculative rather than conservative play. But if you’re a believer in the worlds that Web 3.0 could potentially create, it’s entirely possible that cryptocurrency could become more grounded in utility, rather than speculation. With literally thousands of cryptos currently available, one market theory is that a few top coins will eventually prove their utility and stability and rise to the top, being the ultimate survivors in the crypto world. If you can anticipate which cryptocurrencies these will be, they could prove to be fertile ground for investment.
Although this evolution brings tremendous scale and possibilities, it comes with equally critical challenges of cybersecurity risks that web 3.0 has to contend with. While the 3.0 version of the web opens several transformation and digital revolution opportunities, it’s equally lucrative for anomalies with malicious intentions to manipulate and break into systems. Industry experts are well aware of the data security requirements and are trying to leverage the use of technologies such as Artificial Intelligence (AI) and blockchain technology in the development of web 3.0. These new-age innovations offer significantly higher safety, thanks to advanced protocols and decentralized working mechanisms.
To keep data safe and secure, developers striving for a new ecosystem under web 3.0 must keep in mind the following five cybersecurity challenges:
1. Information Authenticity
2. Manipulation of Data
3. Availability of Data
4. Confidentiality Issue
5. Monetary Losses
Given these vulnerabilities in the emerging web 3.0 space, a number of cyber security and confidential computing innovators are stepping in to develop solutions to this set of challenges.
The first is HUB Security, which leverages a new security paradigm centered around confidential computing for an extremely secure and innovative computing platform. The platform secures the entire computing stack and data at rest, in transit and in use. HUBS unique value are:
- Eliminate security hassle for developers — true isolation of entire compute stack,
- -No modification required — integrate with existing environments
- - Deploy anywhere — from data centers to the edge
- -Unlock new business opportunities — designed to work with core metaverse technologies AI, 5G, IoT, blockchain
- -Future proof — support new security capabilities such as post quantum cryptography
HUB specializes in unique cyber solutions protecting sensitive commercial and government information. They recently debuted an advanced encrypted computing solution aimed at preventing hostile intrusions at the hardware level while introducing a novel set of data theft prevention solutions. HUB operates in over 30 countries and provides innovative cybersecurity computing appliances as well as a wide range of cybersecurity professional services worldwide.
One of the more niche confidential computing services that HUB offers is metaverse security. In this respect, HUB offers solutions for metaverse-related edge computing, access control/digital twins, and tokenization for DeFi finances and digital assets. Their metaverse security package is an extension of the company’s comprehensive approach to cyber security threats that protects data at all junctures. As HUB prepares for an imminent NASDAQ listing, their competitive edge in the fast-emerging metaverse space is another important distinguishing factor for this up-and-coming confidential computing giant.
The next example is Fortanix, a data-first security company. As the industry’s first and largest provider of confidential computing solutions, Fortanix decouples data security from infrastructure. Fortanix solutions empower organizations with centralized controls to secure data spread across clouds, applications, SaaS, databases, and data centers. Enterprises worldwide, especially in privacy-sensitive industries like healthcare, fintech, financial services, government, and retail, trust Fortanix for data security and privacy.
Recently, Fortanix announced the launch of a new suite of Secure Web 3.0 Infrastructure solutions that are integrated within Fortanix Data Security Manager, and designed specifically for blockchain, cryptocurrency and decentralized finance businesses. They Improve the security of business-to-consumer wallets and the integrity of blockchain implementations by leveraging the power of confidential computing. The technologies are called the Fortanix Non-Custodial Warm Wallet and the Fortanix Ignite One-Time Signer. They will ensure full control of private keys by asset owners, and provide high availability and disaster recovery for digital asset businesses. Here’s some technical information about both of these services for industry insiders:
While many investors, developers and futurists are excited about the evolution of Web 3.0, there’s no road map as to what it will eventually become. The same was true in the early days of the internet when it was simply a way to communicate and transfer information, with black screens and text only. While Web 3.0 might not become the essential part of daily life that the internet is, it offers the potential to offer a whole new world of investment opportunities for established and new technology players. Hub and Fortanix are at the forefront of innovation for metaverse security, and are likely an indication of a new hot topic within the broader cyber security industry.