![]() “Bridges will continue to grow because people will always want the opportunity to join new ecosystems. “Any capital on-chain is subject to attack 24/7/365, so bridges will always be a popular target,” says James Prestwich, who studies and develops cross-chain communication protocols. Bridges need a reserve of cryptocurrency coins to underwrite all those wrapped coins, and that trove is a major target for hackers. It's like a gift card or a check that represents stored value in a flexible alternative format. So if you go to a bridge to use another currency, like Bitcoin (BTC), the bridge will spit out wrapped bitcoins (WBTC). Cryptocurrencies are typically siloed and can't interoperate-you can't do a transaction on the Bitcoin blockchain using Dogecoins-so “bridges” have become a crucial mechanism, almost a missing link, in the cryptocurrency economy.īridge services “wrap” cryptocurrency to convert one type of coin into another. ![]() Successful attacks on “blockchain bridges” have become increasingly common over the past couple of years, and the situation with Ronin is a prominent reminder of the urgency of the problem.īlockchain bridges, also known as network bridges, are applications that allow people to move digital assets from one blockchain to another. The incident, which is one of the biggest heists in the history of cryptocurrency, specifically siphoned funds from a service known as the Ronin Bridge. This week, the cryptocurrency network Ronin disclosed a breach in which attackers made off with $540 million worth of Ethereum and USDC stablecoin.
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