◇ OpenCyber Academy
Postgraduate · Chapter 2 · English

Chapter 2 — Web3, blockchain and cryptoasset security: current practice

Open, free learning for anyone who wants to protect people and technology. No account is required to read this text or its worked answers.

Chapter 2 — Web3, blockchain and cryptoasset security: current practice

Lesson map

Lesson 02 published. Map, example, EX006.

flowchart TD
  N0["Learning outcomes"]
  N1["2.1 Current guidance"]
  N2["2.2 Mapping practice to the pilot"]
  N3["2.3 Gaps between guidance and reality"]
  N4["Synthesis"]
  N0 --> N1 --> N2 --> N3 --> N4
  N4 --> EX["Worked example"]
  EX --> Q["Exercise EX006"]

Logical drawing

flowchart LR
  N0["Learning outcomes"]
  N1["2.1 Current guidance"]
  N2["2.2 Mapping practice to the pilot"]
  N3["2.3 Gaps between guidance and reality"]
  N4["Synthesis"]
  N0 --> N1 --> N2 --> N3 --> N4 --> Q["EX006"]

[Learning outcomes]
    |
    v
[2.1 Current guidance]
    |
    v
[2.2 Mapping practice to the pilot]
    |
    v
[2.3 Gaps between guidance and reality]
    |
    v
[Synthesis]
    |
    v
[Worked example] --> [Exercise EX006]

Learning outcomes

You will (1) survey current guidance for permissioned ledgers; (2) map practice to the pilot; (3) identify gaps between guidance and reality.

2.1 Current guidance

Nadia reviews current guidance. NIST IR 8202 describes permissioned and permissionless ledgers, consensus approaches and their trade-offs. The EEA EthTrust Security Levels specification sets requirements for smart contract assurance. The OWASP Smart Contract Top 10 summarises common contract weaknesses, and the ConsenSys best practices give development guidance. She notes that most guidance focuses on contracts and ledgers, while comparatively little addresses governance among institutions sharing a ledger. That imbalance matters for the pilot, where three organisations must agree who operates validators, who controls privileged keys and how disputes are resolved.

2.2 Mapping practice to the pilot

Nadia maps guidance to the pilot's components. The settlement contract should meet an agreed EthTrust level verified by an external review. Validators should be operated by each credit union, so no single party can halt settlement. Privileged functions, such as pausing or upgrading the contract, should require approval from at least two institutions with a timelock. She records which guidance applies, how the pilot meets it and what evidence will show it. The mapping becomes a checklist for the risk committee and a basis for negotiating responsibilities with the partners.

2.3 Gaps between guidance and reality

Nadia identifies gaps. The partners propose that one vendor host all validators for convenience, which would concentrate operational risk. The draft contract has an upgrade function controlled by the vendor's single key. Incident procedures across the three institutions are not aligned. She records each gap with its risk and a proposed remedy. Gaps between guidance and practice are normal early in a project, and finding them before go-live is far cheaper than after. She presents the gaps neutrally, so partners see them as shared problems rather than criticism of their preparation.

Worked example

Nadia maps guidance to the pilot and finds three gaps: vendor-hosted validators, a single-key upgrade function and unaligned incident procedures.

Synthetic case. The pilot and partners are synthetic; NIST IR 8202, EEA EthTrust, OWASP SC Top 10 and ConsenSys best practices are real sources.

Errors and limits

Applying contract-focused guidance alone misses governance risks among institutions sharing a ledger.

Exercises

Synthesis

Mapping current guidance to a real design exposes gaps while they are still cheap to fix.

Continue studying — chapter 02 of 12

← Chapter 01 (draft) · Course chapter index · Chapter 03 (draft) →