Phaeton LitePaper - A New Approach for Web3 Projects’ Security
Single Point of Failure
**You want to make sure that even if one part of your system is hacked, you won't lose all of your money when developing intricate projects and regulations. It's easier said than done to use this strategy.**
In certain cases, identifying potential points of failure is straightforward, but figuring out how to mitigate the risks is far more challenging. For example, let’s say you’ve created a token contract. It’s relatively easy to analyze the risks by asking basic questions like:
- *"How can you ensure you don’t lose all of your investors' money if the contract gets hacked?"*
- *"How will you know if something goes wrong?"*
- *"Which part of your system is the least reliable?"*
However, identifying the less obvious points of failure is where the real difficulty lies.
Consider another scenario: Your smart contract is highly secure, but the phone of a new hire is stolen. This phone is linked to a GitHub account with the ability to push and commit new code to your project. How do you prevent or block such a breach? Without adequate monitoring tools, a backdoor could be installed in your contract without your knowledge, leaving your entire system vulnerable.
**The Solution: Modular Decentralized Data Centers**
This is where **Modular Decentralized Data Centers** come into play. By decentralizing your infrastructure, you eliminate single points of failure and create a resilient system that can withstand attacks on individual components. Here’s how they address the challenges:
1. **Eliminating Single Points of Failure:**
Modular Decentralized Data Centers distribute your data and computational workloads across multiple nodes. Even if one node is compromised, the rest of the system remains secure and operational, ensuring that a single breach doesn’t lead to catastrophic losses.
2. **Enhanced Monitoring and Security:**
With built-in AI-driven monitoring tools, these data centers provide real-time threat detection and response. If an unauthorized change is made to your code or system, the AI can immediately flag and block the activity, preventing backdoors or malicious code from being deployed.
3. **Risk Mitigation for Complex Systems:**
By breaking down your infrastructure into modular components, you can isolate and secure each part independently. This makes it easier to identify vulnerabilities and implement targeted security measures, reducing the risk of widespread damage.
4. **Scalable and Adaptable Security:**
As your project grows, you can add or remove modules without compromising the overall security of the system. This scalability ensures that your infrastructure evolves alongside your project, maintaining robust protection at every stage.
5. **Proactive Threat Prevention:**
Modular Decentralized Data Centers don’t rely on one-time audits or static security measures. Instead, they provide continuous, proactive protection, adapting to new threats as they emerge and ensuring your system remains secure over time.
**Why This Matters**
In the fast-evolving world of Web3 and decentralized technologies, traditional security measures are no longer sufficient. Modular Decentralized Data Centers offer a forward-thinking solution that not only addresses current vulnerabilities but also prepares your project for future challenges. By decentralizing your infrastructure and integrating advanced monitoring tools, you can build a system that is resilient, scalable, and secure—ensuring that even if one part of your system is compromised, your project and your investors’ assets remain protected.
The transition to modular, decentralized infrastructure is not just a technical upgrade; it’s a strategic necessity for anyone serious about building secure, reliable, and future-proof systems in the Web3 era.
Lack of Security Layers
One Time Testing
Real-life Example:
The Wormhole Bridge Exploit is a prime illustration of this issue. $300 million was pilfered eight hours after a commit containing a deprecated function was added to the network. The right CI/CD tools, which would have stopped the commit, together with additional continuous security procedures that may have found vulnerabilities anywhere and not only on audit day, would have prevented this situation. Because this issue is so prevalent, even projects that have recently completed an audit have a tendency to add a "last feature" following the audit, which can be detrimental.
Cyber Solution
First Step: Conduct Passive & Active Assessment
During the first phase of our process to make your project secure, we will perform a full assessment of your business cyber security posture. This part is essential because we need to know your starting point to build a correct security roadmap tailored for you.
First, we will use the passive approach. We will talk to you and understand your project. In this first approach, you will tell us as many details as possible about your applications, architecture, employees, potential known security vulnerabilities, and the risks you pose to your system.
Once we have gotten the details in the passive approach, we will then proceed to the active approach. We will “test” your claims by trying to hack into your system. The process will be done either by security audit to the contracts, a standard penetration test to test the web or mobile application security, or a red-team style penetration test to find novel breaches to your system.
After performing both types of assessments, we will have a high understanding of your current business cybersecurity posture and its potential risks.
Second Step: Conduct Historical Hacks Analysis
Hackers are people just like everyone else. When they observe that what their colleagues are doing is effective, they attempt to follow suit.
Therefore, we must comprehend the current common practices in the hacker community in order to anticipate where the next attack on your system will originate. We'll accomplish that by analysing any project that has characteristics and a structure comparable to yours.
A real-world illustration of this kind of behavior is the centralised exchange hack, in which the private keys of the exchange are nearly invariably lost. This indicates that we need to put in place trustworthy custodian services with stringent guidelines.
A practical example of this type of behaviour is the centralised exchange hack, when the exchange's private keys are almost always lost. This suggests that we must set up reliable custodian services with strict policies.
Petri dishes for sophisticated phishing and social engineering assaults include Twitter accounts, Discord forums, and NFT initiatives. In other attacks, depending on the popularity and type of NFT art, the artwork is replicated and published in a separate marketplace. By being aware of these, we will use educational initiatives in addition to detection techniques to identify potentially harmful links in Discord communities and to identify and report stolen artwork to online marketplaces.
There are numerous other instances of this, and each project has unique intricacies. This is why we must understand the current behavior of the hackers per client.
Third Step: Build a Cybersecurity Roadmap
We are prepared to create a security roadmap for you once we have gathered all of the information mentioned above regarding your projects, including precious assets and their risk potential, the market, and any potential security concerns your system may provide.
What Cybersecurity Roadmap Entails
A project's transition from an insecure to a completely secure state is challenging. It is not possible to add two tasks to your project management platform and then completely ignore them.
There are going to be a lot of tasks. Some are more essential than others, some are complicated and you don't even know where to begin, and some are obstructed by development work. Fear not—this is our purpose for being here.
You may incorporate cybersecurity into your main development project without causing delays by creating a roadmap for the next few months.
Steps Involved In Cybersecurity Roadmap
Fourth Step: Implementation Guidance
As previously said, cybersecurity is an ongoing endeavour. Like any other crypto project development process, it's ongoing.
We will offer as much assistance as required to properly execute our roadmap. We'll be there to accompany you at every turn. This set of implementation guidelines consists of:
1. We are assisting you in writing their policies and putting third-party tools into use.
2. When you build new modules that impact security directly or indirectly in your project, consult us and share our knowledge with us.
3. Making adjustments to the roadmap to accommodate changing business needs and assist in identifying and removing fresh security vulnerabilities.
4. Assisting you in the event of an occurrence: in the event that something went wrong, we would be there to guide you through what transpired, what was lost, and what steps we could do to prevent it.
Summary
Web3 security is challenging, because cyber security attacks can affect practically any project.
We will take your project to the highest level of cyber security standards and make sure the bad guys won't attack you thanks to our special 360° cyber protection strategy
In order to achieve this, we will first actively and passively identify your system's security vulnerabilities and assets. To have a better understanding of the prevalent hacks in the industry, we also examine past hacks for projects that are comparable to yours.
Together, we will create a security roadmap that will include extra security layers, guard against single points of failure in your system, and incorporate a continuous security testing programme to ensure that your system remains safe long after we're done.
We will be there to support you in appropriately implementing our findings to ensure that everything is at the highest degree of security after the security roadmap blueprint has been finalised.