$2 Billion In Crypto Were Stolen From Blockchain Bridges in 2022 — Chainalysis

Since the beginning of 2022, the majority (69%) of crypto theft hacks have been on bridges. According to a Chainalysis report, the hackers stole a total of $2 billion in various cryptocurrencies through these hacks.

According to analysts, there have been 13 separate hacks of inter-blockchain bridges this year, the latest of which was the Nomad Bridge hack.

Most of the crypto assets were stolen in the first quarter of 2022, mainly due to the attack on Ronin Bridge, in which hackers stole $624 million.

According to Chainalysis experts, bridges have become the target of hacker attacks due to their structural features.

Cross-chain bridges or blockchain bridges are designed to transfer cryptocurrencies from one blockchain to another. And although the designs of bridges are slightly different from each other, for the most part they are similar due to the fact that users deposit their tokens from one blockchain into the bridge protocol, in which they are fixed in the contract. Users then receive the equivalent of the token on another blockchain.

Thus, bridges become a target due to the fact that they are the central point of storage of tokens, regardless of whether these assets are stored in a smart contract or a centralized custodian.

According to some experts, effective blockchain bridge design is in its infancy, and some developers still have relatively little understanding of security protocols, making their protocols vulnerable to exploitation by hackers.

Nearly two weeks before the attack, Nomad founder James Prestwich said it would take at least a year or two before blockchain security models become familiar enough to build security standards.

According to a Chainalysis report, attacks on centralized exchanges have decreased due to their improved security protocols. For this to happen with bridges, crypto services should start investing in security updates and training as early as possible. And the first step in this direction could be an extremely thorough code audit, which will become the DeFi gold standard for both these construction protocols and for the investors evaluating them.

Thus, over time, the most reliable and secure smart contracts can serve as templates for developers.

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