Renowned tech expert and project manager, Odunayo Akindote has raised an alarm over the vulnerability of Small and Medium-Sized Enterprises (SMEs) operating in the blockchain and Web3 ecosystem, warning that their often-weaker security frameworks make them prime targets for cyberattacks and blockchain protocol exploits.

Speaking during a virtual blockchain conference focused on decentralization and digital asset protection, Odunayo emphasized the increasing rate at which SMEs in the blockchain space are falling victim to security breaches, resulting in financial loss, compromised digital assets, and eroded customer trust

She cautioned that many SMEs wrongly assume they are too small to be targeted. “Contrary to popular belief, cybercriminals are shifting focus toward smaller blockchain-based businesses due to the perception that they have weaker defenses, outdated systems, or unverified smart contracts,” she explained.

Odunayo urged blockchain-powered SMEs to take proactive steps by conducting routine security audits, implementing multi-layered authentication protocols, and ensuring regular updates of blockchain infrastructure and node software. She also stressed the importance of continuous employee training on threat detection, phishing schemes, and private key management.

“Blockchain security is not a one-time fix, it must be an ongoing commitment. Preventive measures like cold wallet storage, zero-trust frameworks, and penetration testing are critical for protecting digital assets and maintaining operational integrity,” she added.

According to her, SMEs are crucial drivers of innovation and economic growth in the decentralized space and must prioritize securing their platforms and user data. She highlighted that the inability to do so not only exposes them to technical risks but can also affect investor confidence and regulatory compliance.

Odunayo admitted that many SMEs lack the resources for enterprise-grade security solutions or in-house blockchain security teams. However, she encouraged them to leverage open-source blockchain security tools, engage with community security networks, and adopt cost-effective protocols designed to safeguard smart contracts and digital wallets.

She warned that outdated blockchain systems and unpatched vulnerabilities remain a significant entry point for attackers. “If your systems or contracts are not up to date, you’re inviting attackers to exploit known loopholes that could have been fixed long ago,” she said.

In her final remarks, Odunayo emphasized the need for vigilance, knowledge-sharing, and stronger partnerships between blockchain startups, cybersecurity experts, and regulators to build resilience across the ecosystem.
“Blockchain-based SMEs must stay vigilant, invest in the right tools, enforce strong guidelines, and never treat cybersecurity as an afterthought,” she concluded.

Other speakers at the event also called for improved cybersecurity awareness among digital entrepreneurs and educators. They emphasized that safeguarding blockchain systems is essential for maintaining public trust, ensuring regulatory compliance, and protecting the future of decentralized business.