Understanding Trust and Security in Web3

Learning Objectives

After completing this unit, you'll be able to:

• Articulate Salesforce’s ethical principles for Web3 product innovation.
• Identify potential drawbacks and risks in Web3.
• Define strategies and best practices to stay safe in the Web3 space.

Background

Blockchain, cryptocurrencies, and NFTs are driving large-scale innovation and commerce. As with any emerging technology, outcomes remain uncertain. This underscores the need for responsible, ethics-driven development. For Web3 to benefit everyone—not just a privileged few—it must be designed with guiding values.

Principles-Driven Product Innovation
At Salesforce, we believe Web3 products should adhere to these core principles:

1. Trust & Safety: Embed robust brand/consumer protections to prevent fraudulent or harmful use.
2. Sustainability: Commit to net-zero emissions and industry-wide eco-conscious practices.
3. Equality: Ensure fairness, diversity, and empowerment through inclusive design "guardrails."
4. Accountability: Provide transparent governance and stakeholder-led evaluations.
5. Integrity: Prioritize accurate communication and secure user experiences.

Challenges in the Evolving Web3 Landscape

While Web3 offers exciting opportunities, these risks warrant caution:

Speculative Bubbles
Historical cycles like the Dutch Tulip Mania (1634–1637) demonstrate mismatches between asset prices and intrinsic value. Some argue Web3 faces similar volatility.

Price Fluctuations
Crypto assets lack traditional backing (e.g., central banks), leaving values driven purely by supply/demand. Negative events—or even tweets—can trigger sharp declines.

Diversity Gaps
NFT sales disproportionately favor male creators (77% vs. 5% for women). Demographics also skew toward high-earning men, raising inclusivity concerns.

Privacy Risks
While crypto wallets allow anonymity, blockchain’s public ledger means transactions are permanently visible—posing privacy challenges.

Immutability Issues
Blockchain’s unchangeable nature complicates content moderation. Harmful materials cannot be deleted, only hidden.

Absence of Third-Party Protections
Unlike banks, decentralized systems offer no fraud recourse. Lost private keys? $140B in Bitcoin is already irretrievable.

Immature Regulatory Frameworks

Current laws provide minimal safeguards for NFTs/crypto:

• Data Storage: NFTs linked to offline assets risk becoming worthless if servers fail—with no legal recourse.
• IP Rights: Buyers often misunderstand ownership terms, potentially leading to lawsuits.
• Tax Uncertainty: NFT-related tax policies (e.g., capital gains) remain undefined in most regions.

Web3 Security Threats

Six common scams to avoid:

👉 Protect your assets with secure wallets

Protective Measures

Spotting Scams

• Phishing: Fake emails mimicking trusted platforms.
• Hacks: Malicious NFT "airdrops" that compromise wallets.
• FOMO: Countdown timers pressuring rushed decisions.

Safeguarding Your Assets

• Store mnemonic phrases offline (e.g., "rebuild-glow-language...").
• Use cold wallets for bulk funds.
• Update devices regularly to patch vulnerabilities.

Best Practices

• Verify website URLs before transactions.
• Download apps only from official sources.
• Disable DMs from strangers on Discord/Telegram.
• Never share mnemonic phrases or sign unverified contracts.
• Disconnect wallets post-transaction.

👉 Explore audited smart contracts

Conclusion

Salesforce champions ethical innovation—proactively addressing risks while empowering Web3 exploration. Stay vigilant, but don’t shy away from opportunities.

FAQs

Q: Can deleted NFTs be recovered?
A: No. Blockchain immutability means once data is written, it’s permanent.

Q: How do I report a crypto scam?
A: Contact platforms like OKX and local cybercrime units.

Q: Are hardware wallets safer?
A: Yes. Offline storage (e.g., Ledger) reduces hack risks.

Resources:

• Podcast: Crypto Security Mindsets
• Reply All: The Rainbow Chain