• Over $2.5 billion in crypto was stolen from cross-chain bridge hacks between 2021 and 2022.
• Developers have attempted to improve bridge security, but weaknesses remain.
• Uniswap DAO discussed deploying Uniswap v3 to the BNB Chain, leading to debate about which bridge protocol should be used for cross-chain governance.
Cross-Chain Crypto Bridge Security Weaknesses
Over $2.5 billion was stolen in cross-chain crypto bridge hacks from 2021 to 2022, according to a report by Token Terminal. This has prompted developers to create more sophisticated protocols like Celer, LayerZero and Wormhole in an attempt to increase security; however, a debate on the Uniswap DAO forums has revealed that these bridges still contain weaknesses which leave them vulnerable to hacking. As of Feb 15th over $10 billion worth of crypto assets were locked on bridges according to DefiLlama, making this issue particularly urgent.
What Are Blockchain Bridges?
Blockchain bridges are platforms that enable two or more blockchains to share data with each other; for example allowing USD Coin USDC $1.00 USD Coin -0.01% MARKET CAP$42.56bVOL. 24H$18.12m USDC $18.12m transactions between Ethereum and BNB Chain or Trader Joe (JOE) transactions between Avalanche and Harmony networks despite their separate databases and architectures.
Multisig Wallets: The First Generation of Cross-Chain Bridges
In the past, multisig wallets were used as the primary form of security for these bridges; requiring five out of nine signatures for Ronin and two out of five signatures for Horizon before withdrawals could be authorized by validators or validator groups – however attackers managed circumvent these systems leaving users with unbacked tokens when funds went missing or were stolen outright..
Uniswap DAO Debate
When Uniswap began discussing deploying Uniswap v3 onto the BNB Chain they had to decide which bridge protocol would be used– leading to a debate on the forums where critics questioned the security of each solution presented, ultimately concluding that no single bridge solution was secure enough for their purposes – resulting in some participants believing only a multibridge system can protect assets securely in today’s cross-chain environment..
The issue of blockchain bridge security is an urgent one given the amount currently locked on them – however it appears there is still much work needed before any single solution is considered truly secure enough for use in large scale operations such as those undertaken by Uniswap’s DAO..