India Blockchain Week Returns to Bengaluru, Sparks Dialogue on Security Gaps and Self Custody

India's Web3 industry leaders have gathered in Bengaluru to discuss the digital renaissance driven by blockchain-based fintech. On Wednesday, December 4, Web3 venture capital firm Hashed Emergent launched the two-day headliner event of India Blockchain Week 2024 in the country's tech hub. This marks the second edition of IBW, which made its debut in 2023. Leadership teams from leading crypto, DeFi, and blockchain firms are attending the event, engaging directly with India's esteemed Web3 developer community.

Key topics at IBW 2024 include the urgent need for security solutions to prevent incidents like the recent WazirX hack, as well as a deeper understanding of self-custodial wallets and their potential drawbacks.

Discussions on self-custody wallets have intensified in recent months, fueled by a series of hacks, particularly those targeting custodial crypto exchanges. These wallet providers allow users to retain control of their private keys instead of storing them within the provider's system.

In one of the event's first panel sessions, CoinDCX CEO Sumit Gupta, Mudrex co-founder Edul Patel, and Bitgo COO Chen Fang addressed the current limitations of self-custody wallets, agreeing on the challenges that still need to be overcome.

“If you can handle self-custody, and you understand all of that, always move funds from custody. That's the ethos with crypto. That's the ethos around the blockchain. The problem is that a lot of people don't know how to use it. Much more crypto has been lost for life by self-custody mistakes, than hacks that aren't inside jobs,” Patel said with Gupta and Fang in agreement.

The need for increased education and awareness around crypto and Web3 was also a key topic of discussion across panels. Industry leaders emphasised that until more people understand the challenges behind the much-hyped solutions in Web3, new entrants should approach with caution.

Among the key highlights, the "Trump effect" on Bitcoin—driving its value close to $100,000 (roughly ₹84.7 lakh)—has sparked excitement within India's Web3 community.

The recent departure of Gary Gensler as chair of the US SEC has also fueled optimism about crypto's growth in the US, with hopes that this positive shift will extend to other countries. Under Gensler, the SEC had clashed with crypto giants like Binance, Kraken, and Coinbase, drawing criticism for stifling sector growth.

Later panels will feature representatives from Web3 firms such as Polygon, Supra, Aptos Labs, Monad, Astar Network, and Pi42, who will engage with stakeholders, investors, and developers in the Web3 space.