Digital Asset Outlook 2022
2022 Thematic Snapshot
2022 Snapshots
Theme 12: Cybersecurity in 2022 ▪
Cybersecurity is increasingly critical in the digital asset space which has become easy targets for cyber attackers.
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Reliance on private keys and centralization of some digital asset exchanges become the vulnerabilities that expose digital assets to cyber-attack risks.
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In the future, the emergence of innovations in cybersecurity solutions help protect stakeholders from the cyber-attacks and avoid potential loss.
Core thesis
1.3
bn
Funds lost to DeFi hacks (US$, 2021)
Cybersecurity is the means of protecting networks and data from cyberattacks through practices of ensuring confidentiality and integrity of information. The phenomenal growth of the digital asset space has made projects and chains easy targets for cyber attackers. The sector’s reliance on private keys and certain centralized solutions has exposed vulnerabilities to cyberattack risks, further exacerbated by regulators’ limitations in preventing cybercrimes.
Significance and Disruptive Impacts
0.5% Lost funds as a percentage of DeFi TVL (2021)
The digital asset industry will increasingly emphasise cybersecurity, with broader mainstream adoption and regulators’ calls for investor protection. To this end, all stakeholders – innovators, institutions, regulators – will join forces to integrate and adopt next-gen cybersecurity protocols.
Expectation for 2022 1.
CeFi and DeFi will join forces Increasing awareness – As cybersecurity is one of the key prerequisites for the mainstream adoption of digital assets, DeFi, CeFi and governmental institutions will join forces to bolster cybersecurity.
2.
New cybersecurity solutions will go to market 2022 could see the release of new cybersecurity frameworks and solutions that are customized for digital assets. In the future, strengthened cybersecurity alliances, enhanced cybersecurity insurance coverage and solutions will further safeguard the interests in the digital asset ecosystem and enhance users’ confidence. (See Interview with Floyd DCosta, Block Armour & Blockchain
Worx)
10bn Value locked (US$, 2021)
3.
…Driven by end-market demand This is especially true if decentralised protocols are positioned to continue to attract interest from traditional finance, which places a significant premium on security. This could incubate a crypto-security sub-ecosystem that grows
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