In a published report on the matter, blockchain analytics firm Chainalysis said the protocol’s cross-chain bridge vulnerability emerged as the top security risk.
Lacienda estimates that $ 2 billion worth of cryptovalue Dai Bridge has been stolen this year in 13 different exploits. Attacks on cross-chain bridges account for 69% of total funds stolen so far this year, he added.
A bridge and software, usually made up of smart contracts, which allows you to transfer tokens on a network such as Ethereum (ETH) and another such as Avalanche (AVAX). Each blockchain ecosystem has its own token standard, although ERC-20 has become the industry standard in Ethereum.
A bridge too far
The report follows this week’s Nomad bridge hack, which led to the loss of the protocol’s entire collateral, bet at $ 190 million.
The report adds that as value flows over these bridges, they become more attractive to hackers. The report also claims that hacker groups linked to North Korea have been beating half the sudden losses this year, targeting decentralized finance (DeFi) bridges and protocols.
Bridges are lucrative objecti for crimes computers because often the funds that support the destination chain are used as tokens on the destination. I have found powers to be stored in a smart contract or centralized custodian, but amused by a central storage point that is lobitive.
Furthermore, the bridge is mostly experimental and the technology is immature, which means it can discover vulnerabilities and new attack vectors.
The largest breach in the bridge was Ronin, which was mined in March for a value of $ 615 million. Ronin agrees to broadcast Axie Infinity (AXS) on various blockchains. A February wormhole in Ponte Solana (SOL) was exploited for 325 million dollars.
For protection, its state cryptocurrency platforms invite you to undergo rigorous review processes. However, even audited smart contracts can be yielded. Come to Web3 Audius music streaming platform, get $ 6 million in one hack.
While it’s not a bridging attack, the Solana ecosystem suddenly has another setback from this week when as many as 8,000 wallets were looted for over $ 8 million.
The cryptocurrency market does not allow itself to be discouraged
In the pre-Zedes years, the multimillion-dollar hacks and exploits that practiced crypto trading. This week, they don’t seem to be discouraged.
Total market cap increased 2% on the day to $ 1.12 trillion. the markets remain the legal field, with too strong a resistance to overcome.
Bitcoin (citing BTC) is up 1.5% to $ 23,146, while Ethereum is up 2.7% to $ 1,654 at the time of writing.