South Korea Hosts Important Web3 Event, Focusing on Stablecoins and Custody Security

Recently, a highly anticipated blockchain conference was held in Seoul, South Korea. As an important event in the country's Web3 field, the conference attracted numerous industry professionals who engaged in in-depth discussions on hot topics such as DePIN, security tokens, stablecoins, custodianship, and DAOs.

At the main forum of the conference, an audit partner from a security company delivered a keynote speech, focusing on the role of stablecoins and custodial services in the financial ecosystem and their risk management. He emphasized that security is not only a defensive measure but also a key infrastructure that connects traditional finance with digital assets. In the face of emerging fields, proactive planning and responding to potential risks are crucial.

The speaker defines stablecoins as "digital tokens designed to maintain a stable value," and points out that their structures are diverse, including fiat-backed, cash-collateralized, physical asset-supported, and algorithm-driven types. Each type faces unique security challenges and risk management requirements.

In terms of the issuance and circulation mechanism of stablecoin, reserve assets are usually stored in trusted financial institutions, issued through smart contracts, and then flow to the market via exchanges and financial institutions. Given the rapid expansion of the stablecoin market, he emphasized that we are currently in a critical period where it is necessary to accurately identify and systematically respond to potential risks.

The main risks of stablecoins are classified into three categories: reserve risk, operational risk, and on-chain risk. To address these risks, it is necessary to build a comprehensive security response system that includes reserve proof, smart contract audits, governance mechanism audits, blockchain reliability verification, and circulation monitoring.

The speaker also reviewed the significant events related to stablecoins over the past decade. According to statistics, there have been a total of 24 publicly reported major incidents, including 7 attacks caused by contract or on-chain vulnerabilities, 3 depegging events due to design flaws or insufficient reserves, and 14 anchoring failure events caused by regulatory or liquidity issues. He emphasized that the development of regulatory and security systems must keep pace with market growth.

In the face of frequent stablecoin risk events, global regulatory agencies are accelerating the development of relevant frameworks, focusing on core issues such as user protection, legal declarations, and financial risk prevention. Several security companies are also actively participating, maintaining close cooperation with regulatory agencies to help advance the industry's compliance process.

The speech also introduced a simulated research project that designed a standard stablecoin based on the ERC-20 standard, covering complete components such as smart contracts, white papers, risk management policies, and redemption mechanisms, aiming to provide a practical model for global regulatory agencies and practitioners to verify risk factors and policy feasibility.

In the field of custody security, the speaker shared a case study that introduced comprehensive security assessment and consulting services covering all stages such as private key generation, storage, recovery, and usage, including penetration testing, source code review, and custody solution architecture assessment. The results of the project have been submitted as compliance materials to the Hong Kong Securities and Futures Commission and used by several key clients.

The blockchain conference focuses on investment practices, emphasizing projects with feasibility, profitability, and a real user base, highlighting the true value and market adaptability of the projects. The conference invites global blockchain experts, DAO organizers, practical investors, researchers, and traders to provide high-quality insights from an investor's perspective. The event also includes interactive segments such as project exhibition areas, custody security demonstrations, and offline communication, providing a platform for community members and individual investors to understand and engage with quality Web3 projects.