Interview Markets SMW

A Cybersecurity Specialist Explores Trust-Building Strategies in Web3 Gaming

In Brief

For Web3 gaming to gain mainstream traction, robust cybersecurity measures are vital. They play a key role in establishing trust and assurance between players and developers.

Although smart contracts provide enhanced security and transparency, they can also introduce vulnerabilities, particularly concerning the management of valuable in-game assets.

The popularity of Web3 mobile gaming is on the rise, but keeping too much value within a single game wallet can lead to significant risks.

The lucrative nature of Web3 gaming makes it an attractive target for hackers, which highlights the necessity for trustworthy developers, rigorous security audits, and protective tools to safeguard players.

This piece offers insights from Steven Walbroehl, the co-founder and CISO of Halborn, a respected cybersecurity firm that specializes in advising entities within the Web3 space.

Web3 technologies pave the way for innovative game development, distribution, and financial models. Nonetheless, just like any technology, blockchain remains vulnerable to hacking and exploitation, as evidenced by incidents such as the Ronin network compromise  and  Arbitrum bridge hack involving Tales of Elleria. have shown in recent years.

Blockchain gaming presents numerous advantages for players, including true ownership of in-game items, opportunities for governance participation, and earning tangible rewards from gameplay. However, to ensure its security and reliability, Web3 gaming faces cybersecurity hurdles that need to be overcome for it to be widely accepted and successful. Ultimately, effective security protocols are essential in building trust among both players and developers.

In an interview with Steven Walbroehl The piece explores the cybersecurity hurdles faced by web3 gaming, featuring insights from Walbroehl, co-founder and CISO of Halborn. Halborn Halborn is an award-winning cybersecurity firm that employs ethical hackers to provide comprehensive advice and solutions for both web2 and web3 companies. They have collaborated with prominent clients including Infinity Skies, Coinbase, and Avalanche.

"Traditionally, whenever pioneering technology emerges, it’s often quickly exploited by criminals. Take the first automobiles, for instance; they were adopted by bank robbers as getaway vehicles right after their creation. Yet, more than a century later, we still depend on cars. Establishing security and understanding potential threats will foster greater trust in Web3 applications. My belief is that once we raise awareness and refine our technology use, mainstream acceptance will follow,\" said Walbroehl.

Walbroehl said.

Smart Contracts in Gaming

Smart contracts are autonomous programs operating on decentralized networks, facilitating various transactions and interactions within gaming environments. web3 games . They are essential for blockchain games They introduce a higher level of security, transparency, and innovation for both game developers and players alike. That said, smart contracts also come with certain security risks that developers need to recognize and address.

Walbroehl points out that the most concerning vulnerabilities often arise from contracts functioning as significant vaults, like those acting as treasuries or as bridges transferring tokens between chains. These contracts possess powerful capabilities that dictate the flow and distribution of in-game resources.

"It's essential for smart contracts to undergo thorough audits, not only upon creation but also with each subsequent code modification, and certainly before deployment into a live environment.\"

Identifying Vulnerabilities in Web3 Mobile Games

Web3 mobile gaming is witnessing a surge in popularity. Last year, DappRadar reported that mobile blockchain games attracted over 1.7 million users transitioning from web2 to web3 gaming in just one week. noted For developers of mobile web3 games, Walbroehl emphasizes the importance of avoiding excessive value storage in a single-game wallet. Typically, mobile games utilize \"side chains\" to streamline and economize transactions. However, these side chains can experience inconsistencies if not adequately audited or tested. Often, web3 gaming projects are rushed to market before thorough end-to-end vulnerability checks by firms like Halborn can be completed, making security testing a priority before any game's release.

The Landscape of Cybersecurity in Traditional Versus Web3 Gaming Axie Infinity Standard gaming models operate with centralized servers that host and manage user data, game assets, and transactions. These systems are susceptible to a range of threats, including hacking, denial-of-service assaults, and censorship. In contrast, web3 games leverage decentralized technologies to establish peer-to-peer networks, allowing users to assert control over their data, in-game items, and transactions. Although these decentralized networks are more resistant to hacking, they introduce new types of risks, such as bugs in smart contracts, scalability challenges, and regulatory ambiguities.

Walbroehl points out the stark distinctions between traditional gaming and Web3 gaming. However, when it comes to the unique risks associated with web3 organizations, the concerns are somewhat similar. In traditional games, security breaches can compromise user IDs or disrupt payment processes. In true web3 games, decentralization and lack of permissions are standard. Likewise, the risks to users in web3 organizations typically center around gamer privacy, their private keys, and the overall custody of their assets.

This field is vibrant and expanding rapidly, offering a myriad of chances for innovation and new modes of player engagement. Yet, along with these opportunities come considerable challenges. As Web3 gaming evolves, it’s crucial for both developers and players to stay informed about potential risks and to enact mitigating strategies.

"I foresee growth in the web3 gaming realm concerning crowdsourcing, play-to-earn frameworks, and online gambling. All three share a fundamental aspect: value. When something possesses inherent value, it inevitably attracts the attention of hackers and malicious actors. It is crucial for players to be mindful of a developer’s reputation to deter potential insider threats, such as rug pulls, and ensure they prioritize security by engaging audit firms and implementing defensive tools to protect the player base,\"

Web3 gaming Understanding Smart Contract Security: Everything You Need to Know

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Walbroehl said.

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