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Op-Ed: Trustless Bridge: A Much-needed Solution to Blockchain Bridge’s Security Risks

Op-Ed: Trustless Bridge: A Much-needed Solution to Blockchain Bridge’s Security Risks

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As an increasing number of blockchain protocols are launched, each with its own potential, benefits, and areas of focus, there is a growing interest among investors and users to move assets and liquidity. The implementation of blockchain bridges – also known as token bridges – is essential to creating interoperability and allowing the exchange and flow of digital assets, thereby enabling greater liquidity between blockchains.

However, with the flurry of removing pressure to enable cross-chain liquidity, the security technology underpinning many blockchain bridges was initially relatively weak. Many bridges have a single trusted operator that has the power to intercept or interfere with token transfers.

Truly reliable bridges, which do not require users to rely on a centralized or federated group of operators, can solve urgent issues surrounding security for bridges and their users. Trustworthy bridge solutions are critical to the long-term vitality of bridges and blockchains.

address the issue

The main issue with low-security blockchain bridges is that they compromise the benefits of using a transparent, decentralized system, which is what makes blockchains so open, efficient, transparent, and special in the first place. The wormhole bridge attack in February and the theft of the Ronin bridge in March compromised a combined $1bn in assets, showing what can go wrong when bridges are not safely erected.

Typically, bridges work by locking tokens on one blockchain and finding new equivalent tokens on another, which ensures that tokens do not leave their respective blockchains during transactions. Tokens are typically first deposited into a bridge smart contract on the blockchain, where they are locked and will be unlocked when the transaction is reversed. Pools of locked tokens represent a honey pot for any hacker, and when compromised, the value of any unbacked wrapped tokens on the destination chain is called into question.

While this issue was raised in Algorando,The latest Decipher conference in November 2021, the climax of the subsequent Wormhole and Ronin Bridge attacks, highlights the fact that the value of assets held on blockchain bridges has exceeded $32bn since early 2021 that swift action should be taken to implement more secure bridging solutions for the blockchain industry.

provide solutions

Trustless bridge solutions are the most secure way to design and build these bridges because the participants involved do not need to know or trust each other or require a third party to secure the system.

For example, Applied Blockchain and Algorand are collaborating to develop a trustworthy cross-chain bridge that will initially utilize Intel’s security properties.,Will use a new cryptography feature called State Proof when available in Hardware Security Enclave (SGX) and later Algorand. Proof of State is an immutable chain of evidence that verifies the state of assets held on its blockchain. This enables smart contracts on the target chain to process transactions from the Algorand chain.

Trustworthy cross-chain technology seeks to eliminate the need for middlemen or third parties to connect two blockchain networks, thereby improving interoperability and upholding the principle of blockchain technology.,s decentralization.

Proof of State will help connect Algorand to the wider blockchain world, allowing users to carry out cross-chain transactions efficiently, cost-effectively and securely. Therefore, they will also provide a blueprint for other cross-chain solutions to address the security flaws of more centralized systems.

Next-generation security measures such as the State Proof under Development in Algorand (ALGO) will be critical to the long-term viability of blockchain bridge projects. They will solve an immediate security issue and therefore encourage both users and investors to move their assets across chains to make use of these solutions.

Guest post by Adi Ben-Ari from Applied Blockchain

Adi has over 20 years of enterprise software experience, most recently the leading leading delivery of blockchain and advanced cryptography solutions in production. Adi is widely recognized in the industry as an independent thinker, a renowned speaker at major conferences, and serves as an advisor to several startups. His work has been noted by the UK Government, where he was invited to appear in Parliament, the House of Lords and University College London. Adi has co-invented and designed several patents related to confidential computing, cryptography, blockchain and mobile payments.

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Op-Ed: Trustless Bridge: A Much-needed Solution to Blockchain Bridge’s Security Risks

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