Web3-Specific OpSec Considerations

🔑 Key Takeaway: Web3 environments require specialized security approaches that balance blockchain transparency with privacy, address immutability risks, manage self-custody responsibilities, secure decentralized operations, mitigate smart contract vulnerabilities, and navigate community-driven security challenges.

In addition to traditional OpSec principles, Web3 environments require consideration of unique challenges. Many organizations claim to be backed only by decentralized technologies, but they later realize that part of their process is dependant on technologies that are not.

Transparency vs. Privacy

Balancing the transparent nature of blockchain with the need for operational privacy.

Suggested steps

1. Understand what information is publicly visible on-chain
   • Transaction amounts, addresses, contract interactions, and timestamps
   • Use block explorers and analysis tools to understand your on-chain footprint
2. Develop strategies to maintain operational privacy while utilizing public blockchains
   • Use different addresses for different transaction types or business functions
   • Consider privacy-focused layer 2 solutions for sensitive operations
3. Use privacy-enhancing technologies where appropriate
   • ZK (Zero-Knowledge) protocols for privacy-preserving computations
   • Privacy pools or similar technologies (when legally permissible)
   • Privacy-focused blockchains for specific operations (e.g., Monero, Zcash)

Immutability and Finality

Recognizing that blockchain transactions are generally irreversible, requiring heightened security before execution.

Suggested steps

1. Implement robust verification procedures before executing transactions
   • Mandatory multi-person review for transactions above defined thresholds
   • Automated checks for anomalous transaction patterns
   • Hash verification of destination addresses
2. Use multi-signature requirements for high-value transactions
   • 3-of-5 or 2-of-3 signature schemes for treasury operations
   • Hardware wallets for each signer with physical separation
   • Time-locks for large transfers (24-48 hour delay before execution)
3. Deploy transaction simulation tools to verify outcomes before execution
   • Use Tenderly or similar platforms to simulate transactions in a fork of the chain
   • Verify gas estimates and test with small amounts first when using new contracts\
   • Use auxiliary tools such as Safe Multi-sig Transaction Hashes
4. Establish secure deployment practices for smart contracts
   • Use formal verification tools before mainnet deployment
   • Implement deployment scripts with dry-run functionality
   • Require multiple approvals in your deployment pipeline
   • Consider gradual deployments with circuit breakers for critical contracts

Self-Custody Responsibility

Managing private keys and digital assets with appropriate security controls.

🔗 Related Framework: For detailed guidance on wallet security practices, see the Wallet Security framework.

Suggested steps

1. Develop clear procedures for wallet security
   • Air-gapped hardware wallet setups for cold storage
   • Specific seed phrase backup procedures (e.g., metal backups, split storage)
   • Clear rules for when hot vs. cold wallets should be used
2. Implement separation of duties for transaction approval
   • Different roles for transaction initiation, verification, and execution
   • Rotation of responsibilities to prevent single points of compromise
   • Hardware security modules (HSMs) for institutional-grade key management
3. Balance security with operational efficiency
   • Define thresholds for different security requirements (e.g., <$10K, $10K-$100K, >$100K)
   • Implement tiered wallet architecture (hot wallets for operations, cold storage for reserves)
   • Establish secure methods for replenishing hot wallets from cold storage
4. Stay up-to-date with best practices in wallet security and custody solutions
   • Subscribe to security advisory services for cryptocurrencies
   • Follow developments in MPC (Multi-Party Computation) wallet technologies
   • Regularly review and test recovery procedures

Decentralized Operations

Securing operations across distributed teams and systems.

Suggested steps

1. Establish clear security protocols for remote team members
   • Device security requirements (disk encryption, endpoint protection, auto-updates)
   • Secure home network guidelines (dedicated VLANs, strong WPA3 passwords)
   • Clear policies for public WiFi usage (always-on VPN requirement)
2. Use secure communication channels for sensitive discussions
   • End-to-end encrypted messaging (Signal, Matrix/Element with verified devices)
   • Ephemeral messaging for highly sensitive topics (disappearing messages)
   • Encrypted video conferencing with waiting rooms and passwords (Jitsi, Signal)
   • PGP-encrypted emails for sensitive communications that need to be preserved
3. Implement strong authentication for all team members
   • Hardware security keys (Yubikeys, Passkeys) as primary 2FA method
   • TOTP apps as backup authentication method (not SMS)
   • Passwordless authentication where possible (WebAuthn/FIDO2)
   • Regular access review and prompt offboarding procedures
4. Create guidelines for secure collaboration in a distributed environment
   • Encrypted file storage and sharing (Cryptomator, end-to-end encrypted cloud storage)
   • Private repositories with signed commits for code collaboration
   • Secure DevOps practices for CI/CD pipelines
   • Role-based access to administrative systems with just-in-time privilege elevation

Smart Contract Vulnerabilities

Addressing the immutable nature of deployed code.

Suggested steps

1. Conduct thorough code reviews and security audits before deployment
   • Multiple independent security audits for critical contracts
   • Comprehensive test coverage (>95%) for all contract functions
   • Symbolic execution and static analysis tools (Slither, Mythril)
2. Implement upgradability patterns where appropriate
   • Proxy patterns with clear governance mechanisms
   • Immutable core logic with upgradeable periphery
   • Emergency pause functionality with decentralized controls
3. Use formal verification where possible
   • Mathematical proofs of contract correctness for critical functions
   • Verification of business logic and security properties
   • Property-based testing frameworks (Echidna, Scribble)
4. Maintain comprehensive testing environments
   • Local development environments with mainnet forking
   • Testnet deployments with real-world simulation
   • Adversarial testing and red team exercises
5. Consider timelocks and circuit breakers for critical functions
   • Time-delayed administration actions (48-72 hours)
   • Value-limit circuit breakers for suspicious transaction volumes
   • Decentralized monitoring and alerting systems

Community Dynamics

Managing security in open, community-driven projects.

Suggested steps

1. Develop clear security guidelines for community contributors
   • Documented security policies in repositories
   • Security templates for pull requests
   • Required security reviews for changes to sensitive components
2. Establish review processes for community-submitted code
   • Multi-level review requirements based on code criticality
   • Automated security scanning integrated into CI/CD pipelines
   • Bounty programs for vulnerability identification
3. Create security awareness programs for the community
   • Educational resources on common vulnerabilities
   • Regular security-focused community calls or workshops
   • Recognition for security-conscious contributions
4. Balance transparency with operational security needs
   • Clear guidelines on what information should remain private
   • Secure channels for reporting vulnerabilities
   • Responsible disclosure policies and timelines
   • Public security incident post-mortems (with appropriate redactions)