Can Web3 Security Stay Decentralized After 2025's Major Hacks?

Web3 Security Risks After 2025 Hacks: Can It Stay Decentralized?

The promise of Web3 security was always bold.  It was to provide a truly decentralizedfinance system in which users hold their own keys and therefore have a way toprotect their own assets.  At the sametime, once Web3 gained a large user base, its security also became an issue.

In 2025, hackers attacked dozens ofdecentralized finance systems and managed to steal billions of dollars invalue.  Many users have therefore startedto wonder whether it's possible to have a truly decentralized network and keepit secure using the latest technology to counter hackers.

2025's Biggest Hacks: A Wake-Up Call

 According to experts from CCN, more than US$2.17 billion was stolen incrypto-thefts from services in the first half of the year alone.  Some of these hacks were high-profileincidents that have somewhat shaken the industry and damaged the reputations ofa few companies.

For example, the crypto exchange Bybi,based in Dubai, was hacked in February this year, resulting in the theft ofapproximately US$1.5 billion in tokens. Crypto exchanges have begun introducing new security measures followingthis hack, especially regarding cold wallets, since those were among the assetscompromised.

Other major incidents included the attackon Cetus on Sui, which exploited it for $220 million in May; the attack on theDeFi protocol Abracadabra, which lost $1.8 million; and combined losses inOctober reached $18.2 million.

Decentralization under Pressure

This shows a pattern about decentralizedfinance systems, which are under attack from multiple vectors, both technicaland human.

The idea was for a decentralized networknot to have a single entity controlling the system.  However, when it comes to protecting usersfrom hacks, many systems rely on centralized features, since only those can protectthem.  These include: custodialexchanges, bridge signers, or governance multisigs.

Bridges and cross-chain systems areespecially vulnerable to attacks. Bybit's hack, for example, involved attacker control over walletinfrastructure.  This means it exploitedboth smart-contract problems and infrastructural problems with the exchangeitself.

Most decentralized network markets marketthemselves as such, but they are in fact somewhat centralized when it comes tothe features they offer and the systems they use.  It's a trade-off made for performance's sake.  Some, less tech-savvy users are just nowbecoming aware of this fact.

Security Blind Spots and What We've Learned

There's a silver lining to the hacks thisyear: the public is now much more aware of the security blind spotsdecentralized exchanges face.

Access Control is a Risk

Access control failures are the mostcommon way to hack crypto infrastructure. If access is concentrated in a few key holders, the network isn't trulydecentralized.  Projects need to work onminimizing central key control in order to prevent potential risks.  This is done by using threshold signatures,rotating keys, and verifying admin access logs.

Smart Contracts Could Become Risk

Smart contracts are one of the mostexciting decentralized technologies, but they are also prone to bugs.  These include overflows, reentrancy, andmissing access checks.  Within a year,billions are lost due to such security problems.  To combat them, decentralized crypto exchanges need to provide continuous auditing, rapid patches,and formal verifications when required.

Bridges and Cross-Chain Systems Increase Risk.

Web3 was marketed as an innovation thatwould bring interoperability across different blockchains.  It did that, but each cross-chain operationcarries security risks.  Cross-chainbridges depend on a few validators and off-chain actors.  Bridging systems were exploited in most ofthe 2025 hack attacks.  To remaindecentralized and increase security, bridges need to provide large, distributedvalidator sets, light-client validation, and trust-minimized protocols.

Human/Social Engineering Remains Potent

Even the best system is only as secure asthe end user who's being scammed. Human-focused attacks such as phishing, fake apps, and maliciousairdrops account for about one-fourth of all scams.  The only way to prevent these is to educateusers ahead of time so they can recognize the scams when they see them.

The Decentralization/Security Trade-Off

Many Web 3 projects have introducedwhat's called "pragmatic centralization", which means that some ofthe decentralized features have been abandoned in the name of security.  This is noticeable in: small validator setsfor faster finality, centralized oracles for reliable data feeds, andgovernance councils to speed up decisions.

Can Web3 Remain Both Decentralized and Safe?

Simply put – yes, but only if the networkis being designed so that it meets both criteria from the start.  The main goal is to minimize single points offailure and, therefore, create a more robust security system.  Audit culture needs to be brought to a higherlevel using the efforts of both users and decentralized exchanges.

Community oversight represents animportant step towards greater security, especially when it extends beyondaccess to code to governance.

 To Sum Up

There have been several hacks in 2025,leading crypto exchanges to review and revise their security policies.  The hacks have usually exploited the samevulnerabilities, and in some cases, they've cost users billions.

The main issues stem from thedecentralized nature of Web3 platforms, which makes them vulnerable toattacks.  The platforms, therefore, needto create a balance between decentralization and security.  The two don't need to exclude eachother.  At the same time, the usersthemselves are often the most important links in the security chain.  Educated users are able to recognizepotential risks and protect themselves.