Investing in Web 3.0: Understanding the Difference Between Web 2.0 and Web 3.0 in Light of Recent Crypto Hacks and Scams

Web3 and Web3.0 Attack Incidents

According to a report from blockchain security platform Immunefi, the number of attack incidents on Crypto and Web3 projects increased by 153% from July to September 2023 compared to the same period in 2022. In Q3 2022, there were a total of 30 attack incidents, however, this number rose to 76 in Q3 2023. It is estimated that nearly $686 million was lost in the recent quarter.

The most significant loss came from the Mixin hack on September 25, resulting in approximately $200 million being stolen. The Multichain hack was the second-worst attack of the quarter, with over $126 million in losses that have yet to be recovered. Furthermore, the Lazarus Group managed to drain over $208 million worth of crypto through multiple attacks, including CoinEx, Alphapo, Stake, and Coinspaid. The Lazarus Group was responsible for 30% of all stolen crypto in Q3.

The report also stated that rug pulls and other scams only accounted for 3.3% of total losses, with the remaining 96.7% coming from hacks and exploits. Furthermore, the losses from scams in Q3 decreased by 23.9% compared to Q3 2022.

DeFi hacks accounted for 72.9% of total losses, with centralized services accounting for the remaining 27.1%. Immunefi did not specify how they defined “decentralized” versus “centralized” services in the report.

How to Invest in Web3.0

As the Web3.0 and DeFi space continues to grow, more investors are looking to capitalize on the potential of this technology. To invest in Web3.0, one must first understand the difference between Web2.0 and Web3.0, and how Web3.0 works. Web2.0 is a centralized system, while Web3.0 is a decentralized system that uses blockchain technology and smart contracts to facilitate transactions.

Once an investor has a basic understanding of Web3.0, they can begin investing in DeFi projects, Non-Fungible Tokens (NFTs), and Decentralized Autonomous Organizations (DAOs). Before investing, it is important to do your research, as there is always a risk of rug pulls and other scams. By understanding the technology and the risks involved, investors can make informed decisions and maximize their returns.

The two networks most targeted by hackers and scammers, Ethereum and BNB Chain, accounted for 42.7% and 30.5% of losses respectively. Base and Optimism were the third and fourth most popular networks for attackers to exploit. This report provides further evidence that Q3 has been the worst quarter of the year for crypto-related hacks and scams, a conclusion that was also reached by Certik on October 2.

Web 3.0 is an evolution of Web 2.0 and brings with it a number of differences. It is possible to access Web 3.0 through decentralized applications (dApps) and DeFi protocols. To invest in Web 3.0, users can purchase Non-Fungible Tokens (NFTs) or invest in Decentralized Autonomous Organizations (DAOs).