How cross-chain bridges are hacked and the consequences that hacked chains can suffer from being successfully hacked by bad actors that can exploit them. - cc: officer_cia QuillAudits twingatehq cybersecurity blockchain
A cross-chain bridge is a technology that allows communication between two separate blockchain networks, such as transferring and swapping assets, calling functions in contracts from other blockchains, and more. Bridges, in other words, enable users to transfer assets from one network to another. For example, if you have Bitcoin and want to spend it like Ethereum, you can do so via the bridge.
There will undoubtedly be more opportunities for users to use bridges as the number of different blockchains grows. However, if you are unfamiliar with the characteristics of each bridge, you may be exposed to unexpected risks, so use them with caution. With all of these major hacks occurring so frequently and in such a short period of time, it should be obvious that security is desperately needed. I'll go over the most common bridge attacks and provide a list of useful resources to help you protect yourself from potential problems!On 7th October 2022, an exploit was affecting the native cross-chain bridge called “BSC Token Hub”. The bug was in the proof verifier of the bridge.
Back in August, hackers exploited Nomad to steal around $200 million. The main cause of the attack was that Nomad’s smart contract failed to properly validate the input of the transaction. Further Reads:On June 2022, The Harmony Horizon bridge was exploited via the theft of two private keys. The attack resulted in a theft of roughly $100 million in various cryptocurrencies, including Wrapped Ethereum , AAVE, SUSHI, DAI, Tether , and USD Coin .