Why cross-chain bridges are a target for hackers

After the biggest cryptocurrency exchange, Binance lost $100 million in a cyber hack, the talk of cross-chain bridges has been the topic of debate. Despite the recent growth of the DeFi industry, transferring data and digital assets between two chains remains challenging. Blockchain bridges are the most frequently attacked protocols. With the significant value locked on distinct chains, hacks like these will continue if robust security measures aren't taken. In 2022 alone, hackers hacked 13 distinct bridges with a loss of more than $2 billion in bitcoin.

Cross-chain bridges are a desirable target because they act like a central repository of funds that supports the "bridged" assets on the blockchain. This storage facility becomes a target whether the funds are secured with a multi-sig wallet, a smart contract, or a third-party custodian.?

Cross-chain bridges are a crucial instrument in Decentralized finance (DeFi). Without a blockchain bridge, the users in this situation cannot move the assets. Blockchains must be interoperable for assets and data to move freely between networks. Without them, assets are locked on native chains, which give developers and businesses blockchain bridge infrastructure. However, they carry a danger of being hacked or utilized for illegal purposes.

According to BlockChainSentry, since there is still a technical problem with secure bridge design, some of the current bridges could be taken advantage of until best practices are established. Making thorough and frequent smart contract audits is a crucial first step in resolving these problems. Before each release, developers should test their code and work with blockchain security. The most effective designs can eventually be used as templates by future developers. Not just bridges, but other cryptocurrency services as well, should think about spending money on security precautions and training.