2 - 4 minute read
The success of Web3, the decentralized web, is heavily dependent on security solutions that can protect blockchain-based platforms from cyber threats. Security companies play an important role in ensuring the safety of cryptocurrency transactions, providing services like smart contract auditing, security testing and incident response. However, with the number of hacking attempts increasing every year, security measures need to constantly innovate and adapt to the unique challenges and risks associated with blockchain-based transactions.
The DeFi industry, in particular, has seen a surge in hacks and data breaches in the past year according to a recent Chainalysis report. Decentralized finance protocols like PureFi have been working to address these issues and improve the security of Web3 transactions. PureFi has introduced a new method called SafeTransact, which examines blockchain transactions and promptly notifies users of any suspicious activities.
SafeTransact is designed to integrate with AMLSafe, a multi-crypto wallet from the same ecosystem. The system considers token address, sender address, spender address, and amount to analyze transactions and gauge risk. This allows SafeTransact to assess token transfer transactions and swap transactions more comprehensively before alerting users of any suspicious activities.
The success of SafeTransact and other similar security measures is supplemented by the efforts of security companies in the DeFi industry. Security companies conduct audits of Web3 applications to identify potential risks and vulnerabilities. They then develop blockchain-specific security tools to detect and prevent attacks on blockchain networks. Moreover, they also emphasize on implementing secure coding practices to prevent vulnerabilities in Web3 applications.
Despite the ongoing efforts, the DeFi space is still in the process of developing security measures to help users navigate the Web3 world. SafeTransact and other similar systems provide a more secure Web3 experience for users. As security measures improve, traders can transact on the platform with more confidence, as they are receiving real-time notifications on suspicious on-chain activity.
The Bottom Line
As blockchain technology continues to draw increasing adoption, securing the technology and platform should be a top priority. The emergence of DeFi protocols has made it even more imperative to have systems in place that protect transactions and prevent data breaches. SafeTransact, a new method introduced by PureFi, provides an added layer of safety by examining blockchain transactions and promptly notifying users of any suspicious activities. For traders, this added security results in a more secure Web3 experience with increased transparency, providing them with confidence when transacting on the platform.
