On August 2, the Nomad Token Bridge grew to become yet one more sufferer of cross-chain hacking after the protocol suffered a $190 million exploit. Becoming a member of a listing of casualties alongside Axie Infinity’s Ronin Bridge and Solana’s Wormhole, many business consultants have solid doubt on the way forward for cross-chain applied sciences. Nevertheless, not all cross-chain toolkits have to this point been exploited. Relating to this matter, Cointelegraph spoke with Osmosis’ co-founder Sunny Aggarwal. Osmosis is likely one of the hottest decentralized exchanges, or DEXs, on the Cosmos hub with $120 million in whole worth locked. Right here’s what Aggarwal needed to say relating to Cosmos’ namesake inter-blockchain communications protocol (IBC):
“The key bridge hacks are a reminder to victims that bridges are, in actual fact, too brittle to be allowed to custody important quantities of capital at this stage of their lifecycle. Excessive profile bridge hacks solid a light-weight on IBC as being probably the most viable answer for cross-chain bridging as this understanding acts as a possibility for the remainder of the EVM-based ecosystems to have a look at IBC as a severe various to do cross-chain communication.”
At the moment, there are almost fifty blockchains utilizing IBC to conduct 10 million+ transactions day by day, throughout and ecosystem with $1 billion+ in belongings below administration, despite the market downturn. “The absolutely trustless nature of the system is what makes it [IBC] work so properly,” mentioned Aggarwal.
The DeFi architect then pointed to a current instance illustrating the resilience of IBC: “An enormous check to the Osmosis DEX occurred when Terra Luna collapsed. Nearly all of our namesake OSMO tokens that was staked resided in LUNA/OSMO and UST/OSMO swimming pools. With the intention to forestall a malicious actor from minting infinite LUNA and draining the swimming pools of OSMO stake, Osmosis governance carried out a buying and selling halt on the Osmosis-Terra IBC channels.”
In accordance with Aggarwal, IBC’s capability to distribute factors of failure by inter-chain sovereignty is exactly what retains it “the most secure bridging protocol in existence.” Yr to this point, over $2 billion price of funds have been stolen from cross-chain protocols, accounting for 69% of all crypto stolen within the interval.
