There is a choice every new Web3 project has to make: deliver quickly or deliver well.
For years, the advice given to new entrepreneurs has been to “Move fast and break things”. But with the market that is now saturated with pointless solutions to imagined problems, some are already questioning this received wisdom. Will the thirst for the speedy delivery of “minimum viable products” ever be quenched?
With the public launch of Lossless Aegis fast approaching, we have decided to sit down with Vygandas Masilionis, our CEO, to discuss these industry trends. The following is his take on what it takes to succeed in the current ultra-competitive market and what the future holds for Lossless.
What has the Lossless journey been like since the inception of the company?
A quote from T. Edison springs to mind: “There’s a way to do it better — find it!”
I think it quite aptly describes the philosophy that drives our industry. Within the agile crypto space that Lossless inhabits, everything advances ten times faster than in the traditional tech. This is especially true for Web3 security, which is in desperate need of better ways of doing things — if only to get out of its prepubescent stage.
That is precisely why we have resisted the urge to move fast and release products recklessly. Instead, we have decided to focus on the quality of our solutions, on responsible communication, and on laying the foundations for best security practices within the industry. At first, Lossless Protocol was a hard sell. Nevertheless, after several early successes, our client projects quickly grasped the solution’s real value. From there, expansion followed naturally.
What are the most important trends emerging in Web3?
Actually, I recently had a chance to reflect deeply on this at the DeFi Security Summit at Stanford. Generally, we should anticipate more young teams prioritize quality over speed in smart contract development. Yesterday’s push for speed has only led to some of the most devastating smart contract exploits today. Many bridge protocols, in particular, are poorly constructed and remain especially vulnerable. In the future, as more projects recognize that mistakes on launch cost them dearly in the long run, I expect many more hack prevention and exploit mitigation tools to enter the market. This would be a much-welcomed sign of a healthy attitude to security within the industry.
Do you think that Web3 security is being taken seriously enough today?
Although our industry has made great progress since 2020, the answer is still “No”. The total amount stolen has been rising in parallel with the increasing popularity of Web3. The emphasis on speed of delivery — where the QA phase is skipped and security considerations are ignored — is still the biggest reason why. This has to change.
What challenges facing the industry are yet to be overcome?
In Web3 security, the biggest challenge is changing the prevailing mindset of early-stage projects. The stubborn narrative “It’s not going to happen for us” is why we continue to see projects bankrupted by already-known exploits. I would like to believe that it is just a matter of time before every project adopts a proactive approach to Web3 security. After all, it was only 15 years after the Dot-com bubble that we finally began to see near-universal adoption of best cybersecurity practices in Web2. Perhaps the tide is already turning — we see more and more projects that are willing to invest in Web3 security tools because they recognize their value.
What does it take to succeed in this competitive market?
Without a doubt, a solid team with the right mindset. The industry that never sleeps rewards teams that are hungry to move fast and make a difference. In the crypto space, attracting new users is a never-ending battle. Great marketing is key — you must differentiate yourself from the competition and tailor your communication tone to attract the right clients.
That being said, it is easy to be overworked within this space. That is when we start to see project leaders making rash decisions and cutting corners. To be truly successful in the long haul, you have to get the balance right — to be humble and recognize that your project is just a small part of the sweeping wave of innovation. That is why it is best to avoid grandiose statements — lest you start believing in them yourself — and to keep everything in perspective to avoid burnout.
What does the road to maturity in Web3 look like?
The road to maturity is definitely not a straight path. Even though new real use cases emerged post-2017 and 2020 booms, the industry still caters primarily to the needs of enthusiasts. With many gamified experiences and NFT-based pastimes to choose from, it is quite easy to forget that they are sometimes there just for fun. As we approach mainstream adoption, some of these excesses will need to be replaced by meaningful products that add real value.
What milestones would you like to achieve in the short and long term?
In the short term, the public release of Aegis is what keeps me awake at night. Aegis is our most promising product yet, and I am highly confident it will be even more successful than the original Lossless protocol.
Looking at the long term, I would like to oversee a substantial expansion in the team behind Lossless. Scaling requires more manpower. So, if market conditions allow, I would like to see us go from 10 to 50+ team members. Such growth will come with its own challenges, but we are currently in a good state and are more than ready for it.
I also envision Lossless transitioning from a single-product project to a company that provides a suite of security products to all kinds of crypto businesses. Becoming a one-stop shop for all Web3 security solutions is the ultimate goal.
Restoring trust in web3 security. Lossless incorporates a new layer of blockchain transaction security, protecting projects and their communities from malicious exploits and associated financial loss.
Lossless protocol implements an additional layer of blockchain transaction security for ERC-20 standard tokens, mitigating the financial impact of smart contract exploits and private key theft. Lossless protocol utilizes community-driven threat identification tools and a unique stake-based reporting system to identify suspicious transactions, providing real-time protection.