Technology

Explaining crypto’s billion-dollar bridge problem

On March 23rd, the Ronin blockchain network underlying the popular NFT-driven game Axie Infinity was hit with a hack that saw the attackers walk away with an eye-popping $625 million in cryptocurrency. The Ronin hack was the largest amount of money that had ever been stolen from the type of service called a “bridge,” which connects one blockchain to another so that value can be sent between them. Unfortunately, it was far from the only hack to hit a bridge: less than two months previously, another bridge platform called Wormhole was exploited for close to $325 million, and about six months before that, more than $600 million was stolen from another cross-chain bridge called Poly. (In a surprising twist, the hacker later returned Poly’s stolen funds.) In short, bridges are the weak point in a lot of cryptocurrency systems, and hackers are targeting them for more than $1 billion in little over a year. So it’s worth laying out exactly what they are, why they’re important, and how crypto companies can try to plug the billion-dollar hole in their pockets.

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OODA Analyst

OODA Analyst

OODA is comprised of a unique team of international experts capable of providing advanced intelligence and analysis, strategy and planning support, risk and threat management, training, decision support, crisis response, and security services to global corporations and governments.