Analysis carried out by blockchain information platform Chainalysis estimated that $2 billion was misplaced from cross-chain bridge hacks up to now in 2022.
Chainalysis said within the report that the difficulty now “represents a major menace to constructing belief in blockchain know-how.”
Furthermore, researchers mentioned bridge hacks are favored by North Korean hackers, who’re estimated to account for half of the $2 billion stolen so far.
The report comes scorching on the heels of the Nomad bridge hack, during which $191 million was stolen. Nomad hyperlinks the Ethereum, Avalanche, Evmos, Moonbeam, and Milkomeda blockchains.
Cross-chain bridges have a number of factors of vulnerability
Cross-chain bridges join totally different blockchains, enabling the switch of information or tokens between in any other case incompatible chains. The know-how is a part of a drive to make the whole crypto ecosystem interoperable.
Bridges make it potential to make use of property on a special blockchain with out going off-chain to commerce for the required token on an change. Sometimes, they function by an asset conversion course of utilizing a lock-mint-burn mechanism.
Nevertheless, bridges are prone to a number of vulnerabilities, together with a single level of failure/centralization, low liquidity because the centralized entity should maintain a pool of property, technical vulnerabilities because the lock-mint-burn mechanism is ruled by good contracts, and censorship.
The Chainalysis report mentioned 13 separate bridge hacks have occurred so far this 12 months, representing 69% of all stolen funds.
Researchers charted a breakdown of different hacks versus bridge hacks exhibiting no discernable sample. Earlier than Q3 2021, bridge hacks had been non-existent. However Q1 2022 noticed a peak in funds stolen from bridges; this coincided with a peak in complete funds stolen.
Chainalysis mentioned within the report that, beforehand, exchanges had been the first goal for hackers. However elevated safety at exchanges has pressured hackers to hunt out newer, extra weak targets to assault.
To counter the issue, researchers referred to as for rigorous good contract code audits and for confirmed contracts for use as a template for builders to construct on. Chainalysis additionally suggested within the report on the “carelessness of human nature,” saying groups require coaching to identify “refined social engineering ways.”
Though not talked about by title within the report, the above remark was in reference to the Ronin bridge hack, during which Axie Infinity customers misplaced $615 million – the platform later refunded this.
It just lately emerged that the Ronin bridge hack was orchestrated by North Korean hackers concentrating on a senior engineer with a pretend job. The method concerned pretend interviews culminating with a job provide despatched through an contaminated file. Opening the file allowed hackers to imagine management of a number of community nodes.