Hashed Out V57: Web3 Security: How People Actually Lose (and Protect) Money

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Editorial: Fear vs Reality in Web3 Security

Hey there Hashers!

If you follow the headlines, Web3 security can sound like a parade of horror stories: hacks, scams, lost passwords, and people who “clicked one wrong thing” and watched money disappear. It’s enough to make any normal person conclude that the whole space is either wildly dangerous or designed for computer scientists with six monitors and a hoodie.

But here’s the calmer truth: most losses in Web3 aren’t caused by brilliant hackers breaking blockchains. They’re caused by very ordinary human problems—rushing, trusting the wrong link, misunderstanding where assets are stored, or making emotional decisions in the middle of hype or fear. In other words, Web3 isn’t uniquely dangerous. It’s just uniquely unforgiving. Traditional finance has built-in “undo buttons” (customer support, chargebacks, password resets). Web3 often assumes you’re the final line of defense.

The good news is that this makes security less mysterious than it sounds. Losses follow a handful of predictable patterns, and once you understand those patterns, the risk drops dramatically. Think of it like driving: most accidents aren’t caused by some exotic mechanical failure—they’re caused by distraction, impatience, or not checking twice. The goal isn’t paranoia. It’s good habits.

In this issue, we’ll separate fear from reality. We’ll walk through the most common ways people actually lose money in Web3, what almost never happens (despite the headlines), and the simple protections that prevent the vast majority of mistakes. If Web3 is going to become mainstream, confidence has to come first—and confidence comes from clarity.

The Wrap

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