On August 2, the Nomad token bridge grew to become one more sufferer of cross-chain hacking after the protocol suffered a $190 million exploit. Becoming a member of an inventory of casualties alongside Axie Infinity’s Ronin Bridge and Solana’s Wormhole, many business specialists have forged doubt on the way forward for cross-chain applied sciences. Nevertheless, not all cross-chain toolkits have to date 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 complete worth locked. Right here’s what Aggarwal needed to say relating to Cosmos’ namesake inter-blockchain communications protocol (IBC):
“The main bridge hacks are a reminder to victims that bridges are, actually, too brittle to be allowed to custody vital quantities of capital at this stage of their lifecycle. Excessive profile bridge hacks forged a light-weight on IBC as being essentially the most viable resolution for cross-chain bridging as this understanding acts as a possibility for the remainder of the EVM-based ecosystems to take 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 property underneath administration, despite the market downturn. “The totally trustless nature of the system is what makes it [IBC] work so properly,” mentioned Aggarwal.
The DeFi architect then pointed to a latest instance illustrating the resilience of IBC: “An enormous take a look at to the Osmosis DEX occurred when Terra Luna collapsed. The vast majority of our namesake OSMO tokens that was staked resided in LUNA/OSMO and UST/OSMO swimming pools. So as 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 as “the most secure bridging protocol in existence.” 12 months so far, over $2 billion value of funds have been stolen from cross-chain protocols, accounting for 69% of all crypto stolen within the interval.