Korea Blockchain Conference Focuses on Web3 Frontier Trends and Security Challenges

From June 24 to 25, a highly anticipated Blockchain conference was held in Seoul. As an important event in the Korean Web3 field, this conference attracted numerous entrepreneurs, institutions, and investors to participate, engaging in in-depth discussions on popular topics such as DePIN, security tokens, stablecoins, custody, and DAOs.

During the main forum session on the 25th, an auditing partner from a security company delivered a keynote speech titled "Enhancing the Security Journey of Emerging Tracks," focusing on the role of stablecoins and custodial services in the financial landscape and risk prevention.

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

In the speech, he defined stablecoins as "digital tokens designed to maintain stable value" and explained: "Their structures vary, including fiat-backed, cash-collateralized, physical asset-backed (such as gold, real estate, silver), and algorithmically driven types. Each type has its unique security challenges and risk management needs."

Regarding the issuance and circulation mechanism of stablecoins, he introduced: "Reserve assets are usually stored in trusted financial institutions, such as banks, and issued through smart contracts, circulating to the market via exchanges and financial institutions." In the context of the rapid expansion of the stablecoin market, he emphasized: "We are at a critical juncture where we must accurately identify and systematically respond to its potential risks."

The expert categorizes the main risks of stablecoins into three types: reserve risks, such as asset fraud, non-compliant assets, and insufficient liquidity; operational risks, such as abuse of privileges and non-compliance with AML or KYC; and on-chain risks, including network defects, smart contract vulnerabilities, and oracle price manipulation.

He suggested establishing a multi-dimensional security response system, including reserve proof, smart contract audits, governance mechanism audits, Blockchain reliability verification, and circulation monitoring.

The speech 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 decoupling events due to design flaws or insufficient reserves, and 14 anchoring failure incidents caused by regulatory or liquidity issues. He emphasized: "It is essential to keep pace with industry developments and ensure that the regulatory and security systems evolve in sync, not lagging behind the speed of market growth."

In the face of frequent stablecoin risk events, global regulatory agencies are also accelerating the development of regulatory frameworks. Multiple institutions have issued compliance guidance documents for stablecoins, focusing on core issues such as user protection, legal statements, and financial risk prevention. Industry safety companies are also actively participating, maintaining close cooperation with various regulatory agencies and sharing relevant insights in a timely manner to promote the steady advancement of industry compliance processes.

The expert also introduced a case study of an internal simulation research project called "Chocolate Coin". He pointed out: "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, aimed at providing a practical model for global regulators and practitioners to verify risk factors and policy feasibility."

In the field of custodial security, he also shared a case study of a client project "Rigsec". The expert stated: "We provide a comprehensive security assessment and consulting service covering various threats that may arise at all stages of private key generation, storage, recovery, and usage, including penetration testing, source code review, and custodial 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 for use by several core clients."

It is reported that the theme of this blockchain conference is investment practice, focusing on projects that truly possess feasibility, profitability, and a real user base, emphasizing the genuine value of projects and their market adaptability. The conference invites blockchain experts, DAO organizers, practical investors, researchers, and traders from around the world to provide high-quality insights from the investor's perspective. The event also includes interactive sessions such as project exhibition areas, custodial security demonstrations, and offline exchanges, aiming to provide a reliable platform for community members and individual investors to understand and engage with quality Web3 projects.