In recent years, transparency has become a fundamental aspect of the blockchain industry, bringing both advantages and risks for Web3 projects.
Transparency: From Monitoring to Attacking
Blockchain transparency allows users to track project activities in real-time. However, it also creates a structural paradox: transparency, originally intended to enhance accountability, is now used to attack projects even in the absence of clear misconduct.
The Double-Edged Effects of Transparency
Transparency actively uncovers misconduct and restores market fairness, as demonstrated by several instances like the mass sell-off of the HAWK token. However, it can also backfire when projects with inadequate protection become targets for manipulation and attacks.
The New Reality: Should Projects Be More Transparent?
Despite the risks, there is no feasible way to forsake transparency. It is essential to the ethos of Web3, fostering openness and reducing information asymmetries. Rather than retreat, projects must adapt their strategies and establish defenses against attacks while maintaining user trust.
Transparency in Web3 presents both opportunities and risks. For successful operation in this context, projects must be prepared for open scrutiny and systematic attacks.
