On August 2, the Nomad Token Bridge turned one more sufferer of cross-chain hacking after the protocol suffered a $190 million exploit. Joining a listing of casualties alongside Axie Infinity’s Ronin Bridge and Solana’s Wormhole, many business specialists have solid doubt on the way forward for cross-chain applied sciences. However, not all cross-chain toolkits have to date been exploited. Regarding 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 whole worth locked. Here’s what Aggarwal needed to say relating to Cosmos’ namesake inter-blockchain communications protocol (IBC):
“The major bridge hacks are a reminder to victims that bridges are, in fact, too brittle to be allowed to custody significant amounts of capital at this stage in their lifecycle. High profile bridge hacks cast a light on IBC as being the most viable solution for cross-chain bridging as this understanding acts as an opportunity for the rest of the EVM-based ecosystems to look at IBC as a serious alternative to do cross-chain communication.”
Currently, there are practically fifty blockchains utilizing IBC to conduct 10 million+ transactions each day, throughout and ecosystem with $1 billion+ in property beneath administration, despite the market downturn. “The fully trustless nature of the system is what makes it [IBC] work so well,” stated Aggarwal.
The DeFi architect then pointed to a latest instance illustrating the resilience of IBC: “A huge test to the Osmosis DEX occurred when Terra Luna collapsed. The majority of our namesake OSMO tokens that was staked resided in LUNA/OSMO and UST/OSMO pools. In order to prevent a malicious actor from minting infinite LUNA and draining the pools of OSMO stake, Osmosis governance implemented a trading halt on the Osmosis-Terra IBC channels.”
According to Aggarwal, IBC’s capability to distribute factors of failure by way of inter-chain sovereignty is exactly what retains it “the safest bridging protocol in existence.” Year to this point, over $2 billion price of funds have been stolen from cross-chain protocols, accounting for 69% of all crypto stolen within the interval.