
Web2 financial rails makes it much harder to move large sums without going through multiple layers of verification/flags, organization transfer cap, internal approvals and authorization from senior officers and/or the Government. But it doesn’t make them immune. In Web3, a compromised private key, privileged access or vulnerable smart contract can often times be enough to move Billions in seconds, without similar layers of human oversight. It’s not necessarily that Web3 has less security technology. The permission structure is different. Smart contract transparency also plays a role. Anyone can inspect the code, including attackers searching for vulnerabilities and weak access controls. As much as transparency helps independent auditing, it also exposes potential points of failure. Kind of a pros and cons thing.

