How Cybersecurity Talent Can Make Blockchain Startups Less Susceptible to Attacks

NEW YORK, Aug. 11, 2025 — An unprecedented surge has been witnessed in the number o blockchain startups, with some markets having registered 72 percent growth in the year up to 2024, reports Blockchain Council.

Conceptualised by ambitious founders, this segment is brimming with new ideas, from DeFi platforms to NFT marketplaces and Web3 infrastructure tools. With the advancement of technology, the threat perception and element of risk have also increased.

Once viewed to be unhackable, blockchain technology has been confronted by real-world events making it look highly susceptible to cyberattacks.

In terms of the financial repercussions, there are losses worth billions of dollars due to cyberattacks every year, and startups are especially vulnerable. It is important to know the modus operandi of these attacks and how working with experienced cybersecurity talent from the scratch of a project can make a vast difference.

Blockchain is Not a Foolproof Mechanism

As per Blockchain Council, blockchain technology has a tendency to be resistant to attacks but it lacks immunity. “It was built for transparency and decentralization. However, its open structure and irreversible transactions make it a target for hackers. In 2024, over $2.2 billion in crypto was stolen, up 17 percent from the year before,” says the Blockchain Technology Council.

This is a prime example of how blockchain itself may be secure, but the surrounding infrastructure has high-risk vulnerabilities. “Startups must find a way to protect themself, which is why many rely on a cybersecurity recruiter to help them fill key roles with the best talent.”

Emerging Cyber Threat Ecosystem You Should Know

Unusual Threats: Blockchain startups are expected to deal with a very different set of threats compared to traditional tech companies. These unusual threats include smart contract susceptibilities to re-entrancy, force-feeding, flash loan, and other types of attacks. A single unchecked logic error can result in millions of dollars being drained.

Lucrative Targets: Among the money-spinner targets for hackers includes Cross-chain bridges that have also become lucrative with notable attacks including the Axie Infinity Ronin Bridge where $624 million was lost and never recovered. Phishing and social engineering continue to be a popular attack method. It’s often easier for hackers to exploit human flaws than the tech. Insider threats are also a concern. In a decentralized system, even one rogue developer can do irreparable damage.

Why Security Experts Should Be Roped-in Fast?

There is a common belief among founders in the blockchain space to postpone hiring a cybersecurity professional till the time it has scaled. However, this delay often proves to be too late.

The point in time by when a startup has raised its first round or launched a Minimum Viable Product (MVP), the project stands heavily exposed. To create a future-proof, trustworthy, and resilient product, security must be built in, not patched on later.

“This means working with specialists who live and breathe cybersecurity and Web3 architecture. For instance, you’ll need smart contract auditors who are fluent in Solidity, Vyper, and Rust. Security engineers with experience in threat modeling and secure protocol design are also essential. So are DevSecOs pros who can build CI/CD pipelines with integrated security checks,” says a report by Blockchain Council.

A wise move could also be to have incident response specialists in-house, for rapid containment in the worst-case scenario if there is a breach. Most importantly, a startup in block chain ecosystem should hire governance and compliance experts to keep their token launch or DAO legal.

Blockchain Security Market Growth

As per an Allianz report, global blockchain security market is projected to grow from an estimated US$20bn in 2024 to $250bn in the next five years as companies leverage the technology to enhance a variety of different processes, but this growth will also reshape the risk and insurance landscape, according to a new report from Allianz Commercial.

The skyrocketing of blockchain is expected to be driven by the increasing integration of emerging technologies such as artificial intelligence (AI) and the Internet of Things (IoT), designed to enhance threat detection and data security. Sectors that require robust security measures, is witnessing an increased foray of Blockchain applications, ranging from healthcare to supply chain management to copyright and royalty protection to freight transportation.

Security audits carried out by third-party entities, that help organizations to identify vulnerabilities and build trust are also witnessing a spurt in demand. The increasing use of smart contracts also drives the need for advanced security solutions to prevent unauthorized access and exploitation, says Allianz report.

Cross-chain bridges have emerged as prime hacker targets, with the Ronin Bridge breach alone costing $624 million.

Inputs from Saqib Malik

Editing by David Ryder