Blockchain Bridge, Security and what’s special about the Connext Bridge.
Bridges as the name rightly imply Connext one endpoint to another making it easier to move from both ends. As in the case of Blockchain bridges, they connect different independent Blockchain networks to another helping users move native tokens and crypto-assets across chains involved.
Since each blockchain is built to support mainly its native token as in the case of the BNB chain, supports the BNB token and Ethereum supports ETH and other tokens deployed on the chains.
Owing to different reasons to use these assets, it is impossible to send ETH to a BNB wallet address as it doesn’t support the token to ensure BNB can be used on Ethereum, one can easily bridge or sometimes referred to as wrapping to make the BNB compatible with Ethereum chain and useful on Swaps. Dexes and solutions deployed on Ethereum chain.
Another scenario could be needing Polygon when holding Ethereum, with Bridges users can deposit their Polygon to the liquidity pools of such Bridge to receive an equivalent amount of Ethereum in their wallet.
Common to this process and a topic of concern in the Blockchain space is hacking. And an important question is below.
Can Bridges get hacked?
Both decentralized finance and even centralized solutions are susceptible to hacks. Crypto exchanges like Binance and Kucoin and several others at a point in time and decentralized lending and borrowing protocols and other innovations have seen their liquidity pools drained by hackers who exploit the errors or mistakes of the system. Bridges are not in any way different.
Ronin, a blockchain as well as wormhole on Solana blockchain, Polynetwork has witnessed attention-grabbing hacks in the past with Polynetwork losing about $610million, Wormhole losing about $325million and Ronin hack accounting for about $615million. Oftentimes, except the hackers turned in these assets back to the protocol, funds are gone!
These hackers exploit bridges via their liquidity pool draining assets from their locked liquidity which enables switching assets from one network to the others.
Other ways of getting hacked using bridges could include errors from unsuspecting users visiting the wrong web address or connecting to a wallet being heavily monitored by hackers.
Connext and how to be safe using Crypto bridges.
One major uniqueness of the Connext bridge is its interoperability with more than 15 supported Layer 1 and Layer 2 protocols including Solana, Evmos, Ethereum, Polygon, Optimism, Arbitrum, and Moonriver, and several other chains with so many others to be integrated into the nearest future.
Connext is driving the internet of Ethereum and cross-chain making communications, data management, and transactions across different chains easily and eliminating severe processes and huge transaction cost sending from one Blockchain network to another before and after bridging.
An article by xdefi.io describes the Connext protocol as a “locally verified” type where a simple set of two counterparties verify each other without the need for external verifiers. The Connext bridge is described as relatively simple to roll out to multiple blockchains.
Connext also claims that its design is very capital efficient, with testing showing millions of dollars in volume being routed with only a liquidity depth of less than a million dollars. Currently, twelve EVM chains are already supported, with plans for another ten more. — xdefi.io
This iteration of Connext’s network utilizes next and routers as the liquidity and transport layers of the stack. We’ve partnered with Nomad to provide the messaging layer. All to achieve Modular Interoperability with cross-chain communication.
Read further at https://docs.connext.network/basics/howitworks
Systems tested and protocols audited in the past have witnessed hacks and reasons why there is so much call for regulations in the decentralized finance space. Nevertheless, while using these protocols, users are advised to engage in practices that help safeguard their assets such as ensuring the URL being visited is not misspelled and wallets being connected to bridges have no faults or concerns of hacks.
Connext is powering the cross-chain world with different innovations in its ecosystem allowing users to send, communicate and interact with different cross-chain protocols, and monitor assets and Non-fungible tokens even from a single and easy to use wallet.
To learn more about Connext, check out my previous articles and visit www.connext.network.