Blockchain: The $190 billion attack on Nomad Bridge was just one of 13 separate thefts in 2022. According to a new report, the Cross-Chain Bridge hacks will be the key to stolen cryptocurrencies in 2022. 69 percent creates it. This too 2 billion dollars means loss. The report came Tuesday from blockchain analysis firm Chainanalysis. The report emphasized that there were 13 Cross-Chain Bridge hacks this year. The last one was the $190 million Nomad Bridge theft.
The first quarter of 2022 was the quarter with the most cryptocurrencies stolen since 2021. With the Ronin Bridge attack that took place towards the end of March, $ 624 million worth of Ethereum (ETH) and USD Coin (USDC) were stolen.
Cross-Chain bridges, also known as blockchain bridges, are used to transfer cryptocurrencies from one blockchain network to another. Chainalysis explains that although the designs of bridges vary, users deposit their tokens into a chain-to-bridge protocol, which is then locked into a contract. Afterwards, the user is given the equivalent token in the other chain.
Weaknesses of Bridges
Blockchain bridges, according to the Chainalysis report:
According to some experts, the development of effective blockchain bridges is still in its early stages. Some developers, on the other hand, understand relatively little about security protocols. Therefore, some bridges developed become vulnerable to attack by hackers.
Nomad founder James Prestwich tweeted on July 22:
According to Chainalysis, although centralized exchanges were once a favorite of hackers, the success rates of these attacks have decreased with the developments in security protocols.
Blockchain analytics firm launches cryptocurrency services. The firm believes that the security of blockchain bridges should be developed as soon as possible: