The most pressing security concern in DeFi: Cross-chain bridges consistently stand out as the most attacked gateways.
For investors, it's a troubling time, as crypto-related thefts have surged. A hacker took advantage of the Nomad cross-chain bridge, leading to a significant loss of funds for many users. Although some of the affected managed to recover a minor fraction, the DeFi community is now questioning why there has been such an uptick in these attacks over recent months.
Is it pure chance that DeFi bridges frequently become targets for hackers? It raises the question of whether their security measures are simply too susceptible to breaches. Insights from Chainalysis highlight ongoing concerns over these repeated security threats. has released a report The firm estimates that this year alone, approximately $2 billion in cryptocurrency has been siphoned from cross-chain bridges across 13 separate incidents. Alarmingly, nearly 70% of all funds stolen this year originate from attacks on these bridges.
While this scenario might shake user confidence, there's a glimmer of hope as blockchain's inherent transparency and traceability could enhance security measures. Efforts are underway to track stolen assets, potentially hindering musicians from cashing in on their illicit gains.
Cross-chain bridges play a crucial role in the DeFi ecosystem, enabling users to swap digital assets across different blockchains. This functionality facilitates data exchange that would otherwise be restricted.
These bridges typically hold significant amounts of user-deposited liquidity, rendering them appealing targets for malicious actors. Each protocol features unique bridge designs, which are perpetually undergoing testing and enhancements, but clearly face numerous technical challenges.
Hackers are always on the lookout for the weakest links. In past years, centralized exchanges were the primary focus for attacks, but today, these platforms have significantly bolstered their security measures. The DeFi sector should take a cue from this evolution, ensuring thorough code evaluations for developers and diligent assessments for investors. Teams should stay informed about current hacking strategies and receive appropriate defenses training.
What can be done?
In the aftermath of an attack, swift tracking and labeling of the compromised funds is crucial to limit losses and thwart the attackers from liquidating the stolen assets.
The Horizon bridge belonging to Harmony fell victim to a staggering hack, resulting in a loss of $100 million.
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Disclaimer
In line with the Trust Project guidelines Agne works as a journalist for the Metaverse Post, spotlighting the latest innovations and trends in the metaverse, AI, and Web3 domains. Her enthusiasm for storytelling drives her to conduct numerous interviews with industry experts, always on the lookout for compelling narratives. Agne has a Bachelor's degree in literature and possesses broad writing expertise that encompasses travel, art, and culture topics. Additionally, she has volunteered with an animal rights organization, aiming to raise awareness about animal welfare matters. You can reach her at
