Blockchain connectivity is one of the most important elements of the cryptocurrency industry, which has evolved from a tier 1 blockchain collection to an interconnected ecosystem. This evolution is unfortunately accompanied by less pleasant developments, such as the multiplication of piracy on “bridge“Or bridges. Blockchain bridges are platforms that connect two different networks, which allow the transfer of resources and / or information from one blockchain to another. These tools offer the possibility of multiplying the uses of any type of asset.
PolyNetwork, Ronin and more recently Nomadicthe hacks of these “bridges” or inter-chain bridges have made headlines in the crypto media. chain analysisthe blockchain analytics firm, said in a new article report that for this year more than two-thirds of all funds stolen in the crypto space come from cross-chain bridge hacks. Nowadays, PolyNetwork remains the most significant attack carried out in the cryptocurrency industry, even though after many twists and turns the stolen funds were returned to the protocol.
The Nomad hack that took place last Monday resulted in the loss of 200 million dollars. According to Chainalysis estimates, $ 2 billion worth of cryptocurrency has been stolen from cross-chain bridges and these exploits account for 69% of the total funds stolen since the beginning of the year. Chainalysis also suggests that cross-chain bridges have become a prime target for hackers and terrorists, particularly those North Korean criminals who are behind the theft of roughly $ 1 billion worth of cryptocurrency this year.
The report says these bridges are vulnerable due to their design, which often incorporates a central storage point for funds. Regardless of how those funds are stored, locked in a smart contract or with a centralized custodian, that storage point becomes a goal. In addition, bridge design always presents many technical challenges as new prototypes are constantly being developed and tested. These different designs feature new attack vectors that can be exploited by malicious actors as best practices are refined over time.
As Chainalysis noted, centralized exchanges were the first targets for industry hacks until a few years ago. Today, successful centralized exchange hacks are rare, as these organizations have prioritized their security, leading hackers to seek out the latest and most vulnerable services.
In addition, audits and “size bugare another tool to improve the security level of any blockchain-based platform or application. Certified organizations such as Certik Where is it Safe chain can help protect cryptographic transactions. All active bridges should be verified by at least one certified body. While not foolproof, code audits could become the gold standard in DeFi so as to develop a solid framework for smart contracts.
Finally, the importance of coordination and cooperation efforts between blockchain protocols should also be emphasized. Brands Animoca, Binance and other major Web3 companies have investigation $ 150 million to help Sky Mavis reduce the financial impact of Ronin piracy. This is a concrete example of how to build a multi-chain future and take interoperability to the next level.
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