🌉Bridges are apps which allow the transfer of crypto from network to network. Intreropability is in early stages and there are multiple bridges. @NEARProtocol is an L1 blockchain with some unique aspects, but today lets highlight the 🌈Rainbow Bridge. 🧵1/12
2/ First lets go over some of the costliest 💰 bridge exploits that occurred in 2022.
3/ Nomad Aug. 2nd $190M. Smart contract was exploited by allowing OG hacker to withdraw 100 WBTC. Exploit (available on etherscan) was replicated by copying the call data and adding new wallet address. Which then lead to thousands of addresses raiding Nomads accounts.
4/ Nomad is the first Decentralized Hack in History by more than 1000+ possible hackers!
5/ Wormhole Feb. 2nd $320M. Hacker exploited Solana smart contract to manipulate the wormhole bridge. Crediting themselves 96k wETH and converting to Solana.
6/ March 29th Ronin $615M. Hackers manipulated employees at Axies infinity with fake job interviews. A senior engineer clicked on malicious PDF in a phish, which gave hackers access to 5 of the 9 Ronin’s validators private keys. Allowing them to transfer over 600M in USDC & ETH.
8/ Rainbow is unique because it uses a “trustless” model to bridge tokens. Its trust-less because a user must believe in the integrity of each network they are attempting to convert tokens from. In this case it is ETH to NEAR. Here is how the front end model is structured 
9/ Now lets go over the last two “attempted” hacks on Rainbow Bridge in 2022. May 5th $5,000 and August 22nd $8,000 in total losses… for the hacker.
10/ Simply you must pay a bond when bridging tokens on rainbow. Since it’s trustless model it compares the block headers on each network until it reaches x confirmations on the chain and the automated watchdog relayer validates the block to confirm the transaction.
11/ In both attempted bridge exploits. Hacker attempted to exploit the smart contract but the automated watchdog caught the fraudulent block and challenged the transaction. In less than “31 seconds” exploited was mitigated and hacker had lost his bond of roughly 8k worth of ETH
12/ Interesting to see how Rainbow progresses over time. @NEARProtocol has a unique ecosystem but DYOR. Bridge exploits accounted for over 60% of total crypto assets lost to hacks in 2022. It was nice to read up on #Rainbow and Happy 2 year birthday to #near 🌈🎉
@threadreaderapp unroll
• • •
Missing some Tweet in this thread? You can try to
force a refresh
