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Vision and Roadmap

Last updated on June 17, 2024 · Jean-Loïc M.

Industrializing Web3 — Enabling the Most Ambitious Narratives​

The Web3 ecosystem is on the brink of significant industrialization, with a $10 trillion opportunity in Real World Asset (RWA) and finance tokenization projected by 2030. Banks, central banks (such as the Bank of France and Brazil's Drex initiative), and traditional financial institutions are increasingly adopting EVM-compatible DLT infrastructure, signaling a shift toward decentralized finance. However, the persistent risk of hacks remains a critical barrier — hindering the onboarding of traditional investors and slowing adoption of innovative financial solutions.

Historically, industries have evolved by adhering to high standards and stringent regulations to ensure security and trust. While these standards may appear restrictive, they have been instrumental in establishing secure online environments — encrypted connections, personal data protection, and accountability for mishandled user data or funds. Financial services, as one of the most regulated and technically demanding industries, exemplify the importance of these safeguards. For Web3 to reach its full potential — particularly in enabling RWA tokenization and advanced financial products — Web3 security standards must reach a comparable level of compliance and reliability, supported by robust hack-prevention mechanisms.

Enabling Insurance Products​

Today, insurance coverage in DeFi is expensive, limited, and often inaccessible to smaller protocols. This is largely due to the high risks associated with insufficient security mechanisms. By providing a reliable, deterministic hack-prevention framework, IPSProtocol reduces these risks significantly. As a result:

  • Insurance products can become simpler and more cost-effective.
  • A wider range of dApps and protocols can access coverage.
  • Traditional investors and institutions can confidently participate in the DeFi ecosystem, fostering broader adoption.

The Role of Web3 Security Frameworks​

Initiatives such as the EEA DeFi Risk Assessment Guidelines and the Web3 Security Framework spearheaded by Binance and BNB Chain's AvengerDAO initiative are laying the groundwork for a more secure ecosystem. While these frameworks are critical, they represent only the beginning of a continuous evolution. As the complexity of the industry grows exponentially, so too must the security standards.

IPSProtocol redefines the approach to Web3 security. Traditional methods focus on listing attack vectors and attempting to prevent them reactively. IPSProtocol introduces a paradigm shift by emphasizing a self-contained approach: ensuring that a dApp functions strictly according to its specifications and rendering anything outside those specifications non-compliant.

This approach eliminates the never-ending cycle of chasing new attack vectors and updating security postures. Instead, it provides a reliable hack-prevention mechanism that operates independently of newly emerging threats — a true game-changer for the industry.

By adopting this approach, IPSProtocol paves the way for unified, simplified, ISO-like standards for the entire Web3 ecosystem.

Empowering dApps Through Ownership​

The Firewall Contract mechanism is designed to restore security ownership to decentralized applications. By minimizing reliance on external parties, dApps gain full control over their security implementations, aligning with the principles of decentralization. This ownership model is essential for standardizing security practices across the Web3 ecosystem, ensuring that dApps can manage security within their own scope while leveraging external products as tools rather than dependencies.

Establishing Strong Security Standards​

To realize the full potential of DeFi and financial tokenization, Web3 must adopt security standards comparable to ISO certifications for cybersecurity, risk management, integrity protection, and unauthorized-access prevention. Meeting these standards will enable dApps to:

  • Demonstrate robust security practices.
  • Take complete ownership of their security configurations while relying on external solutions as extensions, not replacements.
  • Lay the groundwork for reliable, affordable insurance products tailored to the unique risks of decentralized finance.

Vision for the Future​

IPSProtocol's innovative approach to security not only addresses the immediate challenges of hack prevention but also lays the foundation for Web3's industrialization. In the long-term vision of blockchain, it is crucial to recognize that there will not be a single blockchain where everything happens. Instead, a diverse ecosystem of chains will emerge, each tailored to specific needs and restrictions — consortium blockchains, internal enterprise chains, country-based infrastructures, and more. The reasons for this diversity are vast, ranging from regulatory compliance to performance optimization.

IPSProtocol's modular architecture and the flexibility of its Firewall Client empower users to adapt to this multi-chain future. While its primary function is hack prevention, the system is versatile enough to support more complex demands, including regulatory compliance and integration with advanced governance or operational frameworks.

By providing a robust foundation that mitigates risks, enables regulatory adherence, and fosters the development of scalable insurance products, IPSProtocol is positioned to unlock the full potential of Web3. It bridges the gap between traditional finance and decentralized innovation, paving the way for a secure, interoperable, and compliant blockchain ecosystem that can thrive in a diverse and evolving landscape.

Last updated on by Jean-Loïc M.