The post Zero-fraud security is still a challenge in web3 gaming appeared on BitcoinEthereumNews.com.

Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial. One of crypto projects’ most significant concerns and criticisms, particularly in blockchain-based games, is the threat of scams, frauds, and cyberattacks. Several scams and vulnerability exploits in web3 gaming projects have reinstated the security emphasis on the industry this year. In October, a popular web3 game allegedly pulled an exit scam worth $1.6 million in user funds, according to a recent report from blockchain security platform CertiK. In fact, a recent survey of active web3 gamers found that 41% of gamers are concerned about potential scams and fraudulent activities in the sector. These rising concerns have driven more investment in blockchain security solutions. In October alone, $103 million was raised by blockchain gaming startups, with the largest funds going to security-focused projects, such as Blockaid, a startup specializing in advanced crypto security. Going forward, security will be the primary driver for user adoption and funding in the web3 gaming space as the drive towards zero-fraud becomes more prominent. However, why is security still a stumbling block in the web3 arena? Global VR gaming content revenue worldwide | Source: Statista The primary risk in trading and internet gaming industries To effectively address critical security concerns in the sector, web3 gaming projects must first understand what they’re up against. The primary risks in the blockchain gaming sector manifest in two distinct forms: direct scams, such as stealing deposited money, and hidden fraud, where trust is built before precipitating a loss. The hidden risks are often more subtle and insidious, manifesting in mechanisms that tilt the odds against the user. Developers often use discreet algorithms in the backend that skew game outcomes, leading players to believe they are simply facing…

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Filed under: News - @ December 31, 2023 12:28 am