In 2022, malicious attacks on cross-chain bridges accounted for a staggering 64% of all digital currency losses, according to TradingPlatforms.com.
“The technology behind cross-chain bridges is still in its infancy and has yet to be fully tested,” says Edith Reads, a senior analyst at TradingPlatforms. “Unfortunately, hackers have breached them and made away with millions of dollars.
“It’s challenging, but these threats’ outcome will determine this promising technology’s future,” adds Reads.
Lately, cross-chain bridges have become essential for facilitating transactions between different blockchain networks. It has enabled users to move assets between platforms efficiently. Consequently, it has helped increase the crypto markets’ overall liquidity.
Yet, the rise of cross-chain bridges has also created new security challenges as the bridges provide a convenient way for hackers to steal assets.