Since the inception of DeFi (Decentralized Finance), security has been a major challenge. According to on-chain data from Token Terminal, hackers have stolen more than $2.5 billion on cross-chain bridges from 2020 to 2022.
This amount is enormous compared to security breaches in other sectors. Additionally, reports show that these hackers capitalize on the vulnerabilities on these DeFi platforms.
Vulnerabilities On Cross-Chain Bridges
Meanwhile, Theo Gauthier, the CEO and founder of Toposware, argued that bridges attack have one similarity – vulnerabilities, which hackers exploit. Also, Gauthier noted that a bridge could be safe independently.
However, its security still depends on other chains linked with it. Thus, any bug or breach in one of those bridges would make the entire bridge vulnerable.
Notably, bridges help link different blockchains since they are different from protocols. Hence, Blockchain interoperability is one way to promote wider crypto adoption and better user experience.
Users can easily send assets across blockchains. During this bearish market, there has been an increased outcry for better security and interoperability solutions.
One such technology is ZKPs (zero-knowledge proofs). ZKPs allow for data verification without unveiling more information. This feature sets this technology apart from other interoperability solutions which require networks to reveal their states.
Mudit Gupta, the chief information security personnel at Polygon, believes platforms can use ZKPs to create a ZK-fueled EVM (Ethereum Virtual Machine). This technology will help developers deploy scalable and private smart contracts compatible with Ethereum.
“zkEVM has proven that it can help maintain scalability, speed, decentralization, and privacy. This helps to improve the crypto sector as its features tally with that of cryptocurrencies,” Gupta added.
The Need For Regular Auditing Of Smart Contracts
Also, Gustavo Gonzalez, a solutions developer at Open Zeppelin, suggested that bridges conduct real-time monitoring and regular auditing. Additionally, Gonzalez advised that bridges monitor their smart contracts.
He also talked about employing different third parties to audit their smart contracts before releasing them. “Bridges should conduct new audits after every update. Also, they should endeavor to share the results of such audits with the community,” Gonzalez explained.
He believes that results sharing would build faith among community members. Furthermore, the developer advised firms to use machine learning technology.
According to him, machine learning technology can help cross-chain bridges to spot potential flaws using an advanced security monitoring system. Machine learning can also detect possible attacks before they happen.
Furthermore, combining blockchain protocols and security software can make the crypto space safe for investors and users. However, in the interim, crypto security experts suggest that DeFi platforms have to build trust within their community as insecurity issues continue to grow.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.