What exactly is the cross-chain bridge that is frequently attacked by hackers?

Recently, cross-chain bridge products have been repeatedly attacked by hackers. THORChain, a decentralized cross-chain transaction protocol, claimed that 4000 ETH was lost due to the attack. Hackers stolen all the UMA tokens on the Ethereum chain in the vault with a total value of over 3 million U.S. dollars. AnySwap V3 version was attacked by the cross-link , The cross-chain capital pool lost about 8 million U.S. dollars…A series of security issues also pushed the cross-chain bridge to the forefront of discussion. At this stage of frequent attacks, it is necessary for us to briefly understand cross-chain bridges.

What exactly is the cross-chain bridge that is frequently attacked by hackers?

What is a cross-chain bridge?

The term “cross-chain bridge” contains two levels of relationship, namely, cross-chain is the purpose and the medium is the bridge. To understand it, use the bridge in life to explain the most vivid picture, but the bridge is a necessary means for people to cross the river. The analogy to the blockchain is to extradite the assets of chain A to chain B, which will overcome consensus barriers to achieve mutual promotion between the ecosystems of each chain. The prosperity of such products is due to the fact that the assets on the single-chain blockchain cannot be widely used. For domain circulation, if you want to bring out the value of a wider source, it must be delivered through cross-chain bridge products.

The first cross-chain bridge in the market is a centralized exchange. For example, the issuance of public chain assets and the realization of circulation requires the exchange to act as a transfer station for encrypted assets, that is, the bridge. Released on another service agreement, users can withdraw funds from the bridge to the original public chain by requesting a coin withdrawal. In short, as long as the original blockchain assets such as Bitcoin and Ethereum are applied to any other system, Need to use bridge.

Due to the popularity of DeFi, the current popular cryptocurrency custody service cross-chain bridges, such as WBTC, RenBTC, sBTC, etc., are BTC-anchored coins that are issued on non-Bitcoin networks and are anchored to native Bitcoin. Users must rely on and trust a certain group of entities to mine and burn this type of BCT. Based on this type of token, it can better inject sufficient liquidity into DeFi and obtain high returns. At present, the total circulation of BTC anchor coins has exceeded 260,000.

What exactly is the cross-chain bridge that is frequently attacked by hackers?

Although there are many names of cross-chain bridges, most of them can only provide cross-chain assets, that is, only Dapp assets with high activity and popularity are transferred and circulated. It includes single-organization cross-chain and multi-organization cross-chain, but the essence is not No separation. The next higher level of upgrade and evolution will be the emergence of information cross-chain bridges. Looking at it now, what Polkadot has to achieve is to satisfy both asset cross-chain and information cross-chain at the same time. This will take some time. ChainX, Bifrost, Darwinnia, etc., developed based on Polkadot Substrate, will soon release the value charm that far exceeds the current cross-chain bridge.

The significance of the existence of the cross-chain bridge?

In addition to occupying an important position in asset extradition, cross-chain bridges can also solve the problem of insufficient performance of the underlying public chain. Like the current Polygon sidechain network, it can help transfer transaction throughput from the first layer to the off-chain system. The whole process is easy. Custody of funds through the bridge, release a huge transaction volume pressure. But such bridges also have certain drawbacks. They only focus on their own security model, which is almost independent of the main chain of the blockchain network, so it has a certain degree of security risks.

The ideal cross-chain bridge can not only meet asset information interaction, but also has extremely high security guarantees, and can ensure that the cross-chain environment is highly transparent and tamper-free, and it is compatible with the protocols, applications, and transactions of various public chains. Only by following this goal can the role of “middleware” of the cross-chain bridge be recognized by the wider market and be used more frequently, and the development of the industry can enter the undifferentiated cross-chain bridge safely. The era of chain interaction.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/what-exactly-is-the-cross-chain-bridge-that-is-frequently-attacked-by-hackers/
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