Crypto Industry Needs To Address Its Biggest Problem: The “Bridge” Issue – NDTV Profit
In March this year, the second-largest crypto hack in history was unearthed
The crypto industry came as a huge relief to a vast number of investors looking for a fast-track medium to grow money. As the industry grew, it also became a hub for new investors, those who were taking a plunge into the market for the first time. The stunning rise of the crypto industry, however, masked a pertinent question that is now being asked. It relates to the safety and security of the investment. Being a completely online medium, crypto faces a mammoth task to assure investors that their capital is safe.
In March this year, the second-largest crypto hack in history was unearthed. Some estimates suggest the Ronin hack wiped off $600 million of investor wealth. It was the latest in a string of crypto heists in the past year that totalled over $2 billion.
For Ronin, hackers exploited a type of service called a “bridge”, which connects one blockchain to another for trade. In February 2022, hackers stole around $300 million from Wormhole, a bridge connecting Ethereum to the Solana blockchain. There have been several other scams and thefts. Thus, it is becoming increasingly crucial for the crypto community to answer the million-dollar “bridge” question and assure investors.
There are other issues as well that plague the bridge service. For example, it can be really difficult to figure out what has gone wrong during a trade and who is responsible. Many of the developers of crypto projects are anonymous. So, who do you blame? Those who verify a transaction on the blockchain network are also anonymous.
Industry experts say many of the organisations that run these bridges are inadequately staffed to ensure the security of these transactions. The time needed to figure out the issue and address it can be tasking for them. Also, it would take longer to discover actual issues. In view of these issues, there is a growing demand from crypto users that the community comes together to seek answers to these questions.
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May 13, 2022 at 12:32AM