Blockchain Bridges Are Vulnerable – Should You Worry About Your Cryptocurrencies?

Some notable crypto hacks in 2022:

  • January 7, 2022: Vitalik Buterin warns of bridge insecurity on Reddit
  • January 29: Qubit bridge was hacked for 15.7k ETH, 767 BTC and $9.5m worth of stablecoins.
  • February 2: Wormhole bridge was hacked for 93,000 ETH.
  • March 23: Ronin’s bridge hacked for 174k ETH and 25.5M USDC
  • June 24: Horizen bridge was hacked for 86,000 ETH.

Sam Peurifoy, director of interaction at Hivemind Capital, said bridges now represent the greatest risk of failure of the cryptocurrency sector!

According to statistics from Dune Analytics, Ethereum bridges have over $21 billion locked up.

Wormhole, an Ethereum-dependent bridge to the Solana blockchain, has been the victim of a $300 million hack. The Meter Passport bridge was compromised the same month, losing several million dollars in cryptocurrencies.

4. Security #DeFi faced hacks worth $1.4 billion. #Blockchain players have also become very aware of the security aspect of games. So, developing the blockchain on intrinsically secure platforms with features like zk-rollups safeguards the game against bridge hacks.

Bridges have also been shown to be vulnerable to other factors besides hacking. The Celo Network optical bridge became unusable last year after the bridge development team lost control of the project.

It is sometimes difficult to know who has integrated or who manages a bridge. Identity of validators can be kept secret, and developers are free to remain anonymous.

Many bridges are operated by companies with few security personnel according to Bloomberg. It can take several days before a problem is even identified. The Ronin hack, which cost over $600 million altogether, took place on March 23, but wasn’t discovered until March 29.

Read also Nasdaq’s fall: what consequence for altcoins?

Blockchain interoperability under threat!

The more the volume of tokens passing through the bridges increases, the more their vulnerability is increased. There was simply the Bitcoin blockchain about 13 years ago. There are already hundreds of blockchains, each with their own advantages and limitations.

The #Harmony project proposes to issue ONE tokens to reimburse victims of the Horizon hack. Nearly $100 million was stolen from its cross-chain bridge in June: https://t.co/KN6aYVvKjr

Investors must gradually jump from one channel to another to do yield farming or acquire NFTs.

Discover our farm yield guide.

For example, someone with Ethers may want to migrate them to Solana to buy NFTs.

Investors will continue to switch from one channel to another for various reasons. We can therefore only hope for even more secure bridges managed by reliable players.

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