Are we helpless against attacks on blockchain bridges?
The past few years have plagued the decentralized finance (DeFi) space with hacks, making critics of blockchain technology take a closer look at how this technology is threatening security. This year started off with a US$600 million hack on Axie Infinity’s Ronin sidechain, followed by a US$325 million attack on Solana’s Wormhole, both of which were caused because of the AMM (automatic market maker) cross-chain bridges backing both protocols. It happened again just days ago when hackers stole US$100 million from Harmony protocol’s Horizon cross-chain bridge in a similar attack. These hacks are sparking conversation around whether there are other types of bridges that can better protect against such vulnerabilities. This piece aims to describe the different kinds of bridges and explain why peer-to-peer-powered bridges are a superior choice for protecting end users and allowing the DeFi industry to mature.