The financial and operational damage caused by data breaches is poised to worsen dramatically, fuelled by advancements in quantum computing, Metaverse and artificial intelligence (AI), according to research.
A global study conducted by Naoris Protocol reveals that the average cost of a data breach could climb to $5.3 million within five years, up from the current $4.88 million.
Almost all Web3 developers surveyed (95%) believe data breach costs will continue to rise, with 18% predicting these costs could exceed $5.5 million by the end of the decade. The overwhelming majority (97%) also see the Metaverse, AI, and machine learning as accelerants for more frequent and sophisticated cyberattacks.
As the Metaverse evolves into a more integrated part of the digital economy and AI capabilities grow exponentially, new threats and vulnerabilities emerge. Over 41% of surveyed developers strongly agree that these technologies will drive a significant increase in cyberattacks.
David Carvalho, CEO & Founder of Naoris Protocol, said: “The fusion of the Metaverse and AI is creating a larger attack surface for hackers, while quantum computing threatens to undermine traditional encryption methods. The risks are real, and the cost implications are staggering.”
Naoris says Web3 developers are rallying behind Decentralised Physical Infrastructure Networks (DePIN) as a solution to the growing cybersecurity challenges. DePIN decentralises critical infrastructure, such as network nodes, data centres, and cloud systems, reducing reliance on centralised entities and enhancing overall resilience.
This approach, it says, mirrors the transformative impact of railroads in the 19th century, which reshaped economies by revolutionising connectivity. The study reveals strong optimism for DePIN’s potential:
- 37% of Web3 developers strongly agree that DePIN could have a revolutionary impact on global infrastructure.
- 59% slightly agree, with only 2% dissenting.
With successful examples like Arewave’s decentralised storage network and Render Network’s distributed GPU rendering, DePIN’s scalability and efficiency are clear.
“DePIN reduces single points of failure and empowers communities to take control of infrastructure, fostering both security and economic incentives,” Carvalho adds.
The rise of quantum computing further underscores the urgency of adopting decentralized security frameworks. Quantum computers are expected to break traditional encryption techniques, putting sensitive data at unprecedented risk.
According to Naoris Protocol’s research, 95% of developers are concerned about quantum computing’s implications, with 36% expressing significant concern. However, 87% believe DePIN technology can play a pivotal role in addressing these threats over the next decade.
Photo by Shubham Dhage on Unsplash
