Bug bounty programs invite ethical hackers (aka whitehats) to find and report security vulnerabilities in exchange for rewards, fostering a proactive approach to cybersecurity.

The first bug bounty program was launched by Netscape in 1995, setting the stage for modern cybersecurity practices and emphasizing the importance of open source security efforts.

In the decentralized Web3 world, bug bounty programs are essential for identifying vulnerabilities in blockchain protocols, smart contracts, and decentralized applications (dApps). The stakes are especially high in Web3 bug bounty programs given the potential financial loss associated with a hack.

Bug bounty programs allow Web3 projects to leverage the expertise of a global pool of security researchers, uncovering vulnerabilities before malicious actors can exploit them.

Rewards in Web3 bug bounty programs can be very lucrative including cash compensation, tokens, recognition within the community, and sometimes even NFTs as incentives for ethical hackers.

As the Web3 ecosystem grows, bug bounty programs will become even more integral to its security strategy, incorporating advanced technologies like AI to enhance vulnerability detection and response.