| 10 December 2023, Sunday |

Cryptoverse: Blockchain bridges fall into troubled waters

Another day, another hack, and yet another blockchain bridge is destroyed.

It was the sixth hack of 2022 to target an increasingly vital component in the crypto machine: Blockchain “bridges” – strings of code that assist transport crypto currency between different applications.

According to statistics from London-based blockchain analysis business Elliptic, hackers have stolen bitcoin worth $1.2 billion from bridges so far this year, more than double the figure from previous year.

Most digital tokens now run on their own blockchain, which is effectively a public digital ledger that records crypto transactions. This increases the likelihood of initiatives employing these coins being isolated, lowering their chances of widespread adoption.

Blockchain bridges attempt to demolish these barriers. Backers claim they will play a critical part in “Web3,” the much-touted vision of a digital future in which cryptocurrency is integrated into online life and business.

Bridges, on the other hand, might be the weakest connection.

The Nomad hack was the eighth-largest cryptocurrency heist in history. Other bridge thefts this year have included a $615 million robbery at Ronin, which was utilized in a popular online game, and a $320 million heist at Wormhole, which was used in so-called decentralized banking applications.

  • Reuters