Cross-chain bridges have big problems, as evidenced by a slew of multimillion-dollar hacks. Making swaps simpler is crucial if DeFi adoption is to grow.
Cross-chain bridges have big problems, as evidenced by a slew of multimillion-dollar hacks. Making swaps simpler is crucial if DeFi adoption is to grow. A big problem when transferring assets from one blockchain to another concerns bridges. Between 2020 and 2022, data from Token Terminal. In some cases, inadequate levels of security were to blame.
The Ronin bridge — responsible for powering the popular Axie Infinity game —an exploit worth over $600 million last year, which took six days to detect, but this wasn’t the only problem. At the time, the bridge operated with nine validator nodes, and just five signatures were needed to initiate withdrawals, a hurdle that the attacker managed to overcome. Even if security concerns are dealt with, there can be other limitations. Bridges may only support a small number of tokens, and because each platform operates slightly differently, end users may have to contend with a few added steps before a swap is finalized, which is not ideal when a transaction needs to be completed in a hurry
Cross-Chain Bridges Defi Adoption Security Limitations Tokens Swaps
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