AI as the key to a Secure Web3 future
Tags: web3, ai
Published: 2024-05-31 10:13:11

Modern society lives in a world of advanced technologies and is inevitably influenced by them. The two driving forces behind the transformation of our usual processes are Web3 and AI. It is important to note that this innovative power lies not only in the availability of advanced gadgets, such as Apple Vision Pro augmented reality glasses, although they are also a good device, but deeper. In particular, in creating a more reliable financial infrastructure and solving complex problems related to space exploration or health.

Web3 internet technology is a next-generation solution based on machine learning, AI, and blockchain technology. The “father of Web3” is considered to be Gavin Wood, a British developer and [co-founder](https://fintechinsider.com.ua/spivzasnovnyk-ethereum-i-zasnovnyk-polkadot-gevin-vud-web3-bilshe-ne-tilky-pro-kryptovalyutu-ta-defi/) of Ethereum, who coined the term in 2014, well before it became mainstream in 2021. The advantage of the technology is the creation of intelligent websites and web applications with improved machine data understanding and a structure built on decentralization. Thus, working in decentralized networks increases security and transparency in finance, data management, social networks, and blockchain-based games. Web3 finds its direct application in crypto, implementing the basic principles of decentralization in the blockchain network.

## What are the risks?

However, there are risks that Web3, due to its novelty, may not be adapted to. These include technical failures in blockchain networks, data risks, social engineering attacks, and identification and anonymity problems. For example, the cryptocurrency exchange [Binance](What are the risks?
However, there are risks that Web3, due to its novelty, may not be adapted to. These include technical failures in blockchain networks, data risks, social engineering attacks, and identification and anonymity problems. For example, the cryptocurrency exchange Binance has been in a [long-standing](https://www.binance.com/en/square/post/4635237255865) legal battle with the Netherlands, Belgium, and France over the provision of illegal services.

The problem of technical failures can lie in damage to hardware, such as a server or hard drive. Network failures also occur when nodes do not have access to each other. Let’s look at the main security problems of Web3:) has been in a long-standing legal battle with the Netherlands, Belgium, and France over the provision of illegal services.

The problem of technical failures can lie in damage to hardware, such as a server or hard drive. Network failures also occur when nodes do not have access to each other. Let’s look at the main security problems of Web3:

**Data risks**

The wide network infrastructure requires transaction control. In the case of blockchain transactions, the emphasis is that no one can guarantee the status of participants, whether they are malicious, anonymous, or ordinary clients. It follows that without centralized control, no one will be responsible for transaction and data problems if they are damaged. For example, the DeFi protocols [Cream Finance](https://app.cream.finance/) and [PancakeSwap](https://pancakeswap.finance/) were attacked by [DNS](https://coinmarketcap.com/academy/article/phishing-attack-hits-two-major-defi-protocols-users-told-to-stay-away) spoofing, which compromised users’ crypto assets.

**Identification**

Web3 mechanisms called SSI (Self-Sovereign Identity) are aimed at a maximally confidential identification mechanism for each network participant and their data. Therefore, regulators cannot track whether users are financing terrorism or money laundering. The increased level of secrecy raises concerns about social norms, consumer protection, and accountability. However, this did not prevent Binance, one of the world’s largest cryptocurrency exchanges, from being a channel for laundering illegal money, according to a [REUTERS](https://coinmarketcap.com/academy/article/phishing-attack-hits-two-major-defi-protocols-users-told-to-stay-away) investigation.

**Engineering attacks**

Changing the logic of smart contracts, which involves unauthorized influence on the management of personal projects or crypto wallets. This creates a stir when scammers attract customers with phishing attacks, withdraw funds, and then disappear. It follows that modern Web3 companies benefit from focusing on artificial intelligence. This can be explained by improving productivity, efficiency, and personalization through several key factors:

**Secure Digital experience**

AI integration will allow companies to introduce personalized services for their users. This is done by implementing special AI algorithms that will adapt interaction, recommendations, and content on [Web3 platforms](https://www.solulab.com/top-web3-platforms/).

**AI-Based data analytics and Cybersecurity**

AI algorithms can detect potential threats and anomalies in real time. This means that transactions will become even more secure. In particular, this will be a great option for cryptocurrency exchanges and their clients. For example, for the most security ones crypto exchanges [OKX](https://www.okx.com/ua), [Coinbase](https://www.coinbase.com/), [WhiteBIT](https://whitebit.com/), and many others. As a result, it will be possible to obtain a holistic Web3 ecosystem. Web3 projects that are already using the potential of AI are gaining popularity. In particular, the decentralized prediction market Augur, which uses AI to make more accurate predictions by analyzing data from various sources. [Ocean Protocol](https://oceanprotocol.com/) is another Web3-based platform that uses AI to provide personalized solutions. The [Medibloc](https://medibloc.com/) program is focused on healthcare and uses AI for decentralized management of medical data, allowing patients to control their medical records.

**Conclusion**

Against the backdrop of the rapid development of digital technologies, the merger of AI and Web3 opens up a promising future that will transform many areas, from healthcare to supply chain optimization. This impact will only grow stronger, paving the way for new opportunities that will pose new challenges to society. Data security is crucial in today’s digital world, where breaches can expose sensitive information to millions. AI-powered solutions offer promising ways to combat this growing threat.

Governments, businesses, and researchers need to collaborate on developing AI tools for data protection. These solutions include biometric authentication, blockchain encryption, anomaly detection algorithms, and autoencoders for threat identification. The financial sector is particularly vulnerable, and AI can enhance cybersecurity for crypto assets. New encryption methods and Web3 authorization can increase trust among investors on cryptocurrency exchanges. As AI continues to evolve, it has the potential to revolutionize data security across various industries.