In late March, the Ronin bridge, an Ethereum sidechain created for the popular play-to-win (P2E) NFT game Axie Infinity to handle growing player demand, was hacked for over 173,600 Ether (ETH) and 25.5 million dollars, a combined total. value of more than $600 million.
The company’s official report on the attack noted that the hackers managed to gain access to the validation nodes, resulting in the compromise of five validation nodes, a threshold that is also required to approve a transaction.
Currently, the Ronin chain consists of nine validator nodes, and the hacker managed to gain access to four of them and a third-party validator managed by Axie DAO. This Axie DAO node was the root cause of the exploit last year. The DAO gave Sky Mavis, the developers behind the game, access to sign transactions on his behalf. Because the access was never revoked, the hackers used it to their advantage by turning it into a backdoor access, leading to a multi-million dollar attack.
In the aftermath of the exploit, the Ronin Bridge was closed and all deposits and withdrawals were halted for research purposes.
In response to the attack, Axie Infinity co-founder and COO Aleksander Leonard Larsen said at the time that they would be adding several new validators to the Ronin Network to further decentralize the network. The game’s developers also promised to increase the number of validation nodes from nine to 21 in the future.
the unavoidable future
In the end, Sky Mavis managed to raise $150 million from cryptocurrency exchange Binance and other investors to reimburse affected users.
But not all projects can afford to bail out their users, and according to data from Dune Analytics, more than $21 billion worth of funds are locked up in Ethereum bridges.
Also, bridge hacks are becoming quite common in the cryptocurrency industry. Data from Chain Analysis suggests that weakness in the bridges has led to the theft of more than $1 billion worth of cryptocurrency over a year in seven different incidents.
While many believe that bridges are the biggest potential point of failure in crypto, others say that is not true. “Bridges are an incredibly critical piece of infrastructure right now,” Kanav Kariya, president of Jump Crypto, said in an interview after the $300 million Wormhole Bridge hack. “We are moving strongly towards a multi-chain world.”
Ethereum co-founder Vitalik Buterin has warned that bridges have “fundamental security limits”, although he is optimistic about a “multi-chain blockchain future”. Meanwhile, popular commenter “ChainLinkGod” has claimed that “the implementation and adoption of cross-chain smart contracts and token bridges are inevitable” and “since it will happen anyway, the goal should not be to prevent cross-chain, but to have protections in place.”
A decentralized non-custodial bridge
That’s why DotOracle, the first decentralized noncustodial liquidity bridge on the Casper Network, is more secure. After all, the more decentralized a blockchain bridge is, the more secure it is.
To ensure the decentralization and security of the bridge, the DotOracle bridge will have around 15 validation nodes which will be further increased in phase 2 after the mainnet version stabilizes.
DotOracle is a decentralized network of independent nodes designed to resist censorship. You can continue to provide your service as long as two-thirds of the network nodes are online.
The project primarily consists of building a decentralized oracle and cross-chain liquidity network (bridge) on the Casper Network, the future-proof proof-of-stake blockchain built from the Casper CBC specification.
Casper is designed to accelerate the adoption of blockchain technology by businesses and developers today and to meet the needs of users in the future.
Transfer assets safely
DotOracle offers fast asset transfer confirmation with a highly secure distributed consensus protocol PBFT. Meanwhile, the non-custodial service is provided through the Elliptic Curve (EC) multi-signature scheme, which means users have full control over their assets during transfer.
Another feature of DotOracle is the cut-joined network, which means that any node must deposit an amount of DTO token into DotOracle smart contracts. A violation of the mechanism leads to the burning of the token pool, which discourages bad behavior by the validator.
This robust penalty reduction mechanism is put in place to incentivize each node to follow the protocol in order to be rewarded in DTO by providing adequate service to users.
DTO is a governance token with a total supply of 100 million. Validators are rewarded in DTO for providing the service to DotOracle. Anyone can operate a node, but to become a validating node, a minimum of 500,000 DTOs must be deposited into DotOracle smart contracts.
Recently, DotOracle launched the test network of its multi-chain bridge that aims to transfer digital assets between different blockchains in a fast, decentralized and secure way.
Next quarter the team will launch its mainnet which will allow you to transfer assets between all DotOracle Network supported chains including Casper Network, MoonBeam Polkadot, Ethereum, Binance Smart Chain, Polygon, Fantom, Avalanche, Tomochain.