When will the Crypto Industry Solve its Million-Dollar Bridge Issue?

The crypto industry is home to several unanswered questions and the crypto bridge is one of the primary issues. 

The emergence of digital assets came as a silver lining for the traditional crypto financial market. In fact, the unbanked and under-developed population of the world who are still deprived of the bare minimum financial facilities did receive a medium to possess money and make transactions without going through the arduous traditional banking systems. But even though the crypto industry has offered several facilities and revolutionized the traditional financial industry, it is still at its nascent stage and is under development. Hence, there are still many unaddressed issues that the crypto community needs to solve to ensure that the investors are safe. One of its primary problems is its million-dollar bridge issue. And we have certain well-known examples to address it.

The Ronin hack was the largest amount of money that had ever been stolen from the crypto. It was done through a type of service called a 'bridge,' which connects one blockchain to another so that the value can be sent between them. Unfortunately, this was not the only hack that occurred through a bridge. There have been several other scams and thefts, and with the increased usage of digital assets, it is becoming increasingly crucial for the crypto community to address these issues. In February 2022, hackers stole around US$300 million from Wormhole, a bridge connecting Ethereum to the Solana blockchain.

Why are bridges so vulnerable?

Hacks are not the only issue with bridges. In fact, figuring out what has gone wrong or who is responsible for the design or operation of a particular bridge can also be quite hard. Developers can be anonymous, including the names of the validators. Many of these bridges are run by organizations with little or no security staff, which can eventually lead to a long period of time for the actual issues to be discovered. So, the crypto users should be aware of this issue and understand that as a community it is important to address such complexities. 

Disclaimer: The information posted in the article is for educational purposes only. By using this, you agree that the information does not constitute any investment or financial advice. Do conduct your own research and reach out to financial advisors before making any investment decisions.

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Disclaimer: The information posted in the article is for educational purposes only. By using this, you agree that the information does not constitute any investment or financial advice. Do conduct your own research and reach out to financial advisors before making any investment decisions.