2 KEY SECURITY PRACTICES FOR WEB3 STARTUPS FROM ISRAEL CRYPTO CONFERENCE

Last updated: June 19, 2025, 19:02 | Written by: Arthur Hayes

The Web3 space is exploding with innovation, promising a decentralized future. Shahar Madar, the head of security products at Fireblocks, says Web3 startups need to think from the attacker s perspective when planning security protocols.However, this exciting frontier is also a prime target for malicious actors.Security breaches are becoming increasingly common, jeopardizing user funds and eroding trust in the technology.For Web3 startups, building a secure foundation from the outset is not just an option, it's a necessity.Ignoring security in the rush for growth can lead to devastating consequences, including financial losses, reputational damage, and even the collapse of the entire project.The recent Israel Crypto Conference highlighted this critical issue, bringing together experts to share insights and best practices. The Israel Crypto Conference looked at 2 key security practices for Web3 startups. Security remains a hot topic in the Web3 industry as decentralised finance protocols and enterprises continue toOne standout presentation focused on the essential security steps Web3 startups should take to protect their platforms and users. Shahar Madar, the head of security products at Fireblocks, says Web3 startups need to think from the 'attacker's perspective' when planning security protocols.Continue reading Two keyShahar Madar, Head of Security Products at Fireblocks, emphasized that many new companies mistakenly prioritize growth over security, a decision that often proves costly. Two key security practices for Web3 startups from Israel Crypto Conference cointelegraph.com 3 Like Comment Share Copy; LinkedIn; Facebook; Twitter; To view or add a commentThis article delves into the two key security practices Madar outlined at the conference, providing actionable advice for Web3 startups looking to build a secure and sustainable future.

Understanding the Web3 Security Landscape

The Web3 environment presents unique security challenges compared to traditional web applications.The decentralized nature, reliance on cryptography, and use of smart contracts introduce new attack vectors that require specialized security measures.Unlike centralized systems, where a single point of failure can be secured, Web3 applications often involve multiple interconnected components, each with its own potential vulnerabilities.

Smart contract vulnerabilities: Faulty code in smart contracts can lead to exploits, allowing attackers to drain funds or manipulate the contract's logic.
Private key management: Securely storing and managing private keys is crucial, as compromised keys can grant attackers complete control over user accounts and assets.
DeFi exploits: Decentralized Finance (DeFi) protocols are particularly vulnerable to exploits due to their complex interactions and reliance on oracles for external data.
Phishing attacks: Sophisticated phishing campaigns can trick users into revealing their private keys or signing malicious transactions.
Rug pulls: Malicious developers can abscond with user funds by creating fraudulent projects or manipulating tokenomics.

Security remains one of the Web3 industry's most pertinent concerns, especially as decentralized finance (DeFi) protocols and enterprises continue to grapple with exploits.A proactive and comprehensive approach to security is essential for mitigating these risks and building user confidence. 2 key security practices for Web3 startups from Israel Crypto Conference cointelegraph.comThe conference highlighted that neglecting security early on creates vulnerabilities that become increasingly difficult and expensive to address later.

Key Security Practice #1: Adopting an Attacker's Mindset

Shahar Madar, the head of security products at Fireblocks, underscored the importance of thinking from the attacker's perspective when planning security protocols. web3 crypto security conference Two key security practices for Web3 startups from Israel Crypto ConferenceThis means proactively identifying potential weaknesses in your system and anticipating how malicious actors might exploit them.It's not enough to simply build a secure system; you need to actively try to break it.

Conducting Threat Modeling

Threat modeling is a structured process for identifying and prioritizing potential threats to your Web3 application.It involves:

Identifying assets: Determine what needs protection, such as user funds, private keys, smart contracts, and sensitive data.
Identifying threats: Brainstorm potential threats, such as smart contract vulnerabilities, phishing attacks, denial-of-service attacks, and insider threats.
Analyzing vulnerabilities: Assess the likelihood and impact of each threat.
Developing countermeasures: Implement security controls to mitigate the identified risks.

For example, if your Web3 startup is developing a DeFi lending protocol, you might identify the following threats:

Smart contract exploits: Attackers could exploit vulnerabilities in the lending contract to drain funds.
Oracle manipulation: Attackers could manipulate the price feed from oracles to borrow funds at a lower rate than they should.
Flash loan attacks: Attackers could use flash loans to manipulate market prices and exploit arbitrage opportunities.

By thinking like an attacker, you can anticipate these threats and implement appropriate countermeasures, such as rigorous smart contract audits, decentralized oracle networks, and limits on flash loan amounts.

Penetration Testing and Bug Bounties

Penetration testing involves hiring ethical hackers to simulate real-world attacks on your system. [ad_1]Security remains one of the Web3 industry s most important and relevant issues as decentralized finance (DeFi) protocols and enterprises continue to face exploits.At the Israel Crypto Conference, Cointelegraph talked to Shahar Madar, the headThis can help identify vulnerabilities that might be missed during internal security audits.

Bug bounties incentivize security researchers to find and report vulnerabilities in your code. 791 subscribers in the Satoshi_club community. Satoshi Club is a community that connects blockchain companies with a large pool of cryptoThis can be a cost-effective way to leverage the expertise of a wider community to improve your security posture.

Consider platforms like HackerOne or Immunefi to host your bug bounty program.Clearly define the scope of the program, the types of vulnerabilities that are eligible for rewards, and the payout amounts.

Security Audits: A Critical Step

Before deploying any smart contract or launching your Web3 application, a security audit is paramount. Related: 2 key security practices for Web3 startups from Israel Crypto Conference. Blockchain analytics firm Chainalysis said in a blog post that Israeli authorities seized $1.7 million in theEngage a reputable auditing firm specializing in blockchain security to review your code for potential vulnerabilities.The audit should cover:

Code correctness: Ensuring the smart contract code functions as intended and is free of logical errors.
Security vulnerabilities: Identifying common smart contract vulnerabilities such as reentrancy attacks, integer overflows, and front-running vulnerabilities.
Gas optimization: Optimizing the code to minimize gas costs, which can save users money and prevent denial-of-service attacks.
Compliance with industry standards: Verifying that the code complies with relevant security standards and best practices.

Remember that a security audit is not a one-time event. Shahar Madar, the head of security products at Fireblocks, says Web3 startups need to think from the attacker s perspective when Two key security practices for Web3 startups from Israel Crypto Conference - XBT.MarketAs your codebase evolves, you should conduct regular audits to ensure that new features and changes do not introduce new vulnerabilities. Shahar Madar, the head of security products at Fireblocks, says Web3 startups need to think from the attacker s perspective when planning security protocols. 2 key security practices for Web3 startups from Israel Crypto Conference - InstaCoin.NewsPrioritize auditors with proven track records and expertise in your specific technology stack.

Key Security Practice #2: Implementing Robust Access Control

The second key security practice highlighted at the Israel Crypto Conference was implementing robust access control mechanisms.Access control is the process of restricting access to sensitive resources based on predefined roles and permissions. At the Israel Crypto Conference, Cointelegraph talked to Shahar Madar, the head of security products at Fireblocks, about the necessary steps Web3 startups should take to secure their platforms and users. Madar told Cointelegraph that, in his experience, many new startups usually delay developing a security protocol to focus on growth.This is crucial for preventing unauthorized access to user funds, private keys, and critical system components.

According to Shahar Madar, it's not uncommon for startups to grant excessive permissions to employees, even those who don't require access to sensitive resources.For example, a business development person, however great they may be, shouldn't have the ability to access or modify smart contract parameters or user accounts.This creates a significant security risk, as a compromised account could lead to widespread damage.

Principle of Least Privilege

The principle of least privilege dictates that users should only be granted the minimum level of access necessary to perform their job duties. 2 key security practices for Web3 startups from Israel Crypto ConferenceThis minimizes the potential damage that can be caused by a compromised account or insider threat.

To implement the principle of least privilege, you should:

Define roles: Create clear roles with specific responsibilities and access requirements.
Grant permissions: Assign permissions to roles based on the principle of least privilege.
Enforce access control: Implement access control mechanisms to enforce the defined permissions.
Regularly review access: Periodically review user access and permissions to ensure they remain appropriate.

Multi-Factor Authentication (MFA)

Multi-factor authentication (MFA) adds an extra layer of security by requiring users to provide multiple forms of authentication, such as a password and a one-time code from a mobile app, before granting access.This makes it much more difficult for attackers to gain unauthorized access to accounts, even if they have stolen a password.

Implement MFA for all critical accounts, including:

Administrative accounts: Accounts with privileged access to system configurations and data.
Developer accounts: Accounts used to deploy and manage smart contracts.
User accounts: Accounts used to access user funds and personal information.

Secure Key Management

Secure key management is essential for protecting private keys, which are the keys to accessing and controlling user funds and assets. Altszn.com provides the latest news, resources and insights on Bitcoin, Ethereum, Solana, DeFi, Web3, NFTs and other cryptocurrency markets.Private keys should be stored securely and protected from unauthorized access.

Consider using hardware security modules (HSMs) or multi-party computation (MPC) to protect your private keys.HSMs are dedicated hardware devices that store private keys securely and perform cryptographic operations without exposing the keys to the host system.MPC allows multiple parties to jointly compute a function without revealing their individual inputs, which can be used to protect private keys by distributing them across multiple parties.

Monitoring and Alerting

Robust monitoring and alerting systems are vital for detecting and responding to security incidents in real time. Two key security practices for Web3 startups from Israel Crypto ConferenceImplement monitoring tools to track key metrics, such as transaction volume, gas prices, and user activity.Configure alerts to notify you of suspicious activity, such as large withdrawals, failed login attempts, or unexpected smart contract interactions.

Utilize blockchain analytics tools to monitor on-chain activity and identify potential threats. 🔐It's essential for Web3 startups to stay on top of the latest security practices! 🤔At the Israel Crypto Conference, I learnt about two key security practices that are essential for Web3These tools can provide insights into suspicious transactions, addresses associated with known scams, and emerging attack patterns.

Building a Security-First Culture

Security is not just a technical issue; it's a cultural issue. During the Israel Crypto Conference, Cointelegraph spoke with Shahar Madar, the head of security products at Fireblocks, about the necessary steps that Web3 startups should take to secure their platforms and users. Madar told Cointelegraph that, in his experience, many new startups usually delay developing a security protocol to focus on growth.Web3 startups need to foster a security-first culture, where security is everyone's responsibility.This means educating employees about security best practices, promoting security awareness, and encouraging employees to report potential security vulnerabilities.

Security Awareness Training

Conduct regular security awareness training for all employees to educate them about common security threats, such as phishing attacks, social engineering, and malware. During the event we will discuss various topics related to the web 3 ecosystem, including the successes and failures of traditional financial and decentralized finance systems, starting and operating Web3 startups, leveraging on-chain data, the impact of NFTs on ownership and identity, risks and security for users and builders, the use cases for blockchain and AI, and bringing trust to publicProvide employees with the knowledge and skills they need to identify and avoid these threats.

Secure Development Practices

Adopt secure development practices to ensure that security is built into the development process from the outset.This includes:

Code reviews: Conducting thorough code reviews to identify potential vulnerabilities before code is deployed.
Static analysis: Using static analysis tools to automatically detect vulnerabilities in code.
Dynamic analysis: Using dynamic analysis tools to test code in a runtime environment and identify vulnerabilities that may not be apparent during static analysis.

Incident Response Plan

Develop a comprehensive incident response plan to outline the steps to be taken in the event of a security incident.The plan should include:

Roles and responsibilities: Clearly define the roles and responsibilities of each member of the incident response team.
Communication procedures: Establish clear communication procedures for internal and external stakeholders.
Containment strategies: Develop strategies for containing the impact of a security incident.
Recovery procedures: Outline the steps to be taken to recover from a security incident and restore normal operations.

Common Questions About Web3 Security

Here are some frequently asked questions about Web3 security:

Q: How often should I conduct security audits?

A: Security audits should be conducted before deploying any smart contract or launching your Web3 application. Web3 hacks are financial, so they're about the attacker's return on investment. In Web;re a viable target the moment you hold a non-negligible amount of 2 key security practices for Web3 startups from Israel Crypto ConferenceYou should also conduct regular audits as your codebase evolves to ensure that new features and changes do not introduce new vulnerabilities.

Q: What are the most common smart contract vulnerabilities?

A: Some of the most common smart contract vulnerabilities include reentrancy attacks, integer overflows, front-running vulnerabilities, and denial-of-service attacks.

Q: How can I protect my private keys?

A: You can protect your private keys by using hardware security modules (HSMs) or multi-party computation (MPC).You should also implement strong access control mechanisms to restrict access to private keys.

Q: What are some best practices for preventing phishing attacks?

A: Some best practices for preventing phishing attacks include educating employees about phishing tactics, implementing multi-factor authentication, and using anti-phishing tools.

Conclusion: Prioritizing Security for a Sustainable Web3 Future

Securing Web3 startups requires a multifaceted approach, encompassing proactive threat modeling, robust access control, and a deeply ingrained security-first culture. Security remains one of the Web3 industry s most important and relevant issues as protocols and enterprises continue to face exploits. At the Israel Crypto Conference, Cointelegraph talked to Shahar Madar, the head of security products at Fireblocks, about the necessary steps Web3 startups should take to secure their platforms and users.The insights shared at the Israel Crypto Conference, particularly by Shahar Madar from Fireblocks, underscore the criticality of prioritizing security from day one.Ignoring security in the pursuit of rapid growth is a recipe for disaster.By adopting an attacker's mindset and implementing robust access control measures, Web3 startups can significantly reduce their risk exposure and build a more secure and sustainable future for the decentralized web.

Remember these key takeaways:

Think like an attacker: Proactively identify potential threats and vulnerabilities in your system.
Implement robust access control: Restrict access to sensitive resources based on predefined roles and permissions.
Foster a security-first culture: Educate employees about security best practices and encourage them to report potential vulnerabilities.
Conduct regular security audits: Engage reputable auditing firms to review your code for potential vulnerabilities.
Stay informed: Continuously monitor the evolving Web3 security landscape and adapt your security measures accordingly.

By prioritizing security, Web3 startups can build trust with users, attract investment, and contribute to the long-term success of the decentralized web. CEO and Founder - Technology startup CEO/CFO. AI WEB3 Crypto DeFi Blockchain Venture Capital, Financial Management, Strategic Planning and Execution in technology startupsDon't delay – start implementing these security practices today and build a secure foundation for your Web3 venture.