The threat of security and data breaches continues to plague the digital landscape in 2024, impacting both Web2 and Web3.
The financial fallout from these attacks is substantial. Web2 attacks alone resulted in losses averaging $4.88 million per incident, while the Web3 space witnessed a staggering $1.26 billion drained from protocols. These figures underscore the urgent need for more robust – and innovative – security measures.
A new report published by media outlet The Block’s research unit delves into a few key security incidents of the year, exploring the vulnerabilities that led to them, and how a data protection-focused ecosystem like Midnight might help mitigate some of the threats.
Unveiling the exploits
The Block’s report provides an overview of the most prevalent security exploits that have wreaked havoc this year – from phishing attacks and malware to SQL injection and cross-site scripting in the Web2 realm, to input validation failures, oracle manipulation, and reentrancy attacks in the Web3 domain.
Case studies: real-world impact
To illustrate the tangible impact of the exploits, the research then outlines a few key case studies from last year. These include the multi-sig compromise attack on Radiant Capital, the Sonne Finance timelock exploit, and the governance attack on Curio DAO.
Zero-knowledge future
Amid the higher stakes and growing challenge presented by malicious actors, the emergence of zero-knowledge-based ecosystems like Midnight can offer a reduced attack surface. By leveraging zero-knowledge proofs (ZKPs) to introduce on-chain data protection features, this approach represents a shift in the security paradigm – one where data is secured by being shielded and not being shared publicly in the first place.
Dive deeper
Read the full report to gain a better understanding of the state of digital security in 2024, the evolving threats presented by data breaches, and how Midnight is positioned to help reshape the future of data protection.
About The Block
The Block is an independent media outlet that delivers news, research, and data that empowers smart decisions for those who work with, make decisions about, or seek to understand digital assets.