Risks Involved With Blockchain Bridges

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There has been an exponential growth in the trade of digital assets across different blockchains lately which also is accompanied by the unfolding of blockchain bridges.

These bridges don't have the same technical scrutiny as the blockchains have, and the growing demand for their use may lead to the escalation of the bridges having weak security mechanisms which could be a considerable risk in value transfer.

Things like these may also add to the negative perceptions made about cryptocurrencies and blockchain.

Blockchain Bridges

Blockchain bridges are the applications that enable users send cryptos from one chain to other. Blockchain bridges allows cryptoassets to be used on other blockchains.

The need for these blockchain bridges may be numerous but one of the mean reason for it could be avoiding high ETH gas fees and getting onto a faster, lower cost blockchains.

*Blockchain bridges allows to have connectivity as well as liquidity across multiple blockchains and are important in the wider crypto ecosystem.

Risks Involved with Blockchain Bridges

With some of the significant things that blockchain bridges offer, there also are flaws in the security of some blockchain bridges.

  • Earlier this year in February there was a theft of around $325 million between Solana and other blockchains Wormhole.

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Source: Elliptic

  • A hack on Ronin Bridge in March also occurred showing that the hackers had found a weak link.

Now, some people may say, this illustrates how there are flaws in DeFi and crypto interoperability but the fact is that the technology has already moved on.

But this thing does need to be addressed in order to go for a mass adoption.

Posted Using LeoFinance Beta

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An excellent point of view that I rarely saw being approached. And in addition, the conversion rates between most networks is still absurdly high, which makes mass adoption even more harmed.
Thanks for sharing.
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Why is it harmful? This indicates interest, another thing is the improvement in transaction security.

Posted Using LeoFinance Beta

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(Edited)

Yes, I was very feverish when I sent LEO to Cubfinance, and the coins got stuck somewhere, in the unknown, but. Fortunately, the guys from Leofinance kept everything under control and returned all the funds in full. Scary to send money without that kind of tech support lol.

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Technology is growing rapidly, the vulnerabilities can't be ignored, that's why we need to keep improving every second.

I'm positive in 2 decades from now, we'll have better and improved bridges from one chain to another.

Posted Using LeoFinance Beta

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It's something I have been paying attention to. Security needs to be a huge concern that people need to consider and it's another layer of vunerability. It's also the easiest way to convert tokens from one chain to another but it can cascade into a huge issue

Posted Using LeoFinance Beta

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