The $625M Ronin blockchain hack shows the need for better security in the Web3 world

In one of the biggest breaches in DeFi history, hackers stole more than $600 million of tokens — Ethereum and USDC — from the Ronin blockchain associated with the popular game, Axie Infinity.

Both entities are part of the burgeoning Web3 ecosystem, which is defined by elements of decentralization and digital currency. And the fact that they could be broken into highlights the need for focus on security in the glitzy world of Web3.

We’ll take a look at details of the hack, and how the company’s mitigating it. But first, a brief introduction about the game and the Ronin blockchain.

What the heck is Axie Infinity?

Axie Infinity is a play-to-earn game where players have to mint and collect NFT-based characters that aren’t unlike animated monsters, a la Pokemon. They can earn in-game tokens through breeding, battling, and building their army with these monsters called Axies.

Sky Mavis, the Vietnamese company that runs the game, raised $152 million — bringing its valuation to $3 billion — last year from investors like a16z, FTX cryptocurrency exchange, and Samsung Next.