A large Blockchain forum held in Seoul, South Korea, focusing on the cutting-edge trends of Web3

From June 24 to 25, an important Web3 event was held at the Textile Center in Seoul, South Korea. This conference attracted numerous entrepreneurs, institutions, and investors to engage in in-depth discussions on cutting-edge trends such as DePIN, Security Token Offerings (STO), stablecoins, custody, and DAOs.

During the main forum session on the 25th, Matt Wang, an audit partner from a security company, delivered a keynote speech titled "Elevate Security Journey On Emerging Tracks", focusing on the role of stablecoins and custody services in the financial landscape and risk control.

Wang pointed out: "Security is not only a defensive measure but also a core infrastructure that connects traditional finance and digital assets. In the face of emerging fields, it is necessary to plan ahead and actively respond to potential risks."

He defines stablecoins as "digital tokens designed to maintain a stable value" and explains: "Their structures are diverse, including fiat-backed, cash-collateralized, physically-backed (such as gold, real estate, silver), and algorithmically-driven types. Each type has its own unique security challenges and risk management requirements."

Wang also introduced the issuance and circulation mechanisms of stablecoins: "Reserve assets are typically held in trusted financial institutions, such as banks, and are issued through smart contracts, then circulated to the market via exchanges and financial institutions." He emphasized: "We are at a critical juncture where we must accurately identify and systematically respond to its potential risks."

The main risks of stablecoins are divided into three categories: reserve risk (such as asset fraud, non-compliant assets, insufficient liquidity); operational risk (such as abuse of authority, non-compliance with AML or KYC); on-chain risk (including network defects, smart contract vulnerabilities, oracle price manipulation, etc.).

Wang suggested building a multi-dimensional security response system, including reserve proof, smart contract auditing, governance mechanism auditing, Blockchain reliability verification, and circulation monitoring.

He also shared significant events related to stablecoins over the past decade (2014-2024). According to the report, there have been a total of 24 publicly disclosed major incidents, including: 7 attack incidents caused by contract or on-chain vulnerabilities, 3 de-pegging incidents due to design flaws or insufficient reserves, and 14 pegging failure incidents caused by regulatory or liquidity issues. Wang emphasized: "We must keep pace with industry developments and ensure that regulatory and security systems evolve in sync, not lagging behind the speed of market growth."

In response to frequent stablecoin risk events, global regulatory agencies are accelerating the development of regulatory frameworks. Multiple institutions have released compliance guidance documents for stablecoins, focusing on core issues such as user protection, legal statements, and financial risk prevention.

Wang also introduced a case of an internal simulation research project "Chocolate Coin". He stated: "Chocolate Coin is a standard stablecoin designed based on the ERC-20 standard, encompassing complete components such as smart contracts, white papers, risk management policies, and redemption mechanisms, aiming to provide a practical model for global regulatory authorities and practitioners to verify risk factors and policy feasibility."

In the field of custody security, Wang shared a case study of a client project "Rigsec". He stated: "We provide comprehensive security assessment and consulting services that cover various threats that may arise at all stages of private key generation, storage, recovery, and usage, including penetration testing, source code review, and custody solution architecture assessment, forming a comprehensive service package." He added: "This project has also been submitted as compliance material to the Hong Kong Securities and Futures Commission (SFC) and several core clients for use."

The theme of this blockchain conference is investment practice, focusing on projects with feasibility, profitability, and a real user base, emphasizing the true value and market adaptability of the projects. The conference invites blockchain experts, DAO organizers, practical investors, researchers, and traders from around the world to provide high-quality insights from an investor's perspective. The event also includes interactive sessions such as a project exhibition area, custody security demonstrations, and offline networking, providing a platform for community members and individual investors to learn about and engage with quality Web3 projects.