Multichain

David

Ronin

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Coinbase’s Institutional research team notes many bridge hacks occurred due to the complexities around source chain commit and cross-chain relay. 
Cyber incidents related to cross-chain bridges are likely to decrease in the foreseeable future as many protocols continue adopting rollup solutions alongside increased scrutiny on secure designs. 
According to Coinbase Institutional’s recent <a href="https://www.coinbase.com/ru/institutional/research-insights/research/market-intelligence/blockchain-bridges-navigating-a-fragmented-universe" target="_blank" rel="noreferrer noopener">research report</a>, most of the largest bridge hacks over the past few years happened due to the complexities around the signing and validation of messages by the relayers. These third-party services facilitate the transaction of data between different blockchains. 
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 <img decoding="async" loading="lazy" width="1164" height="736" src="https://crypto.news/app/uploads/2023/10/hosudhfjsd.png" alt="Coinbase reveals reasons behind recent bridge hacks in crypto - 18" class="wp-image-14206512">
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 Value lost due to cross-chain bridges related to other incidents in the crypto industry | Source: Coinbase
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David Han, Institutional Research analyst at Coinbase, referred to the notorious Ronin bridge hack when a hacker using a social phishing scheme got five out of nine private keys needed to forge data payloads to signify withdrawals. 
<blockquote class="wp-block-quote"> 
 “The Multichain hack (July 2023) also saw the private key of the relayers leaked, leading to valid signatures for fraudulent transactions.” <cite>David Han, researcher at Coinbase</cite>
</blockquote> 
Although the crypto industry <a href="https://www.chainalysis.com/blog/crypto-crime-midyear-update-2022/" target="_blank" rel="noreferrer noopener">lost more than $2 billion</a> worth of crypto across 13 separate cross-chain bridge hacks in the first half of 2022, Han noted that the frequency and size of bridge-related hacks have dropped since then. 
 You might also like: <a href="https://crypto.news/what-is-cross-chain-technology/"> What is сross-сhain technology </a> 
According to Coinbase’s calculations, the value lost due to bridge-related hacks has declined 90% in 2023 to less than $140 million. The Coinbase analyst admitted there are still risks to exist. Still, bridge-related hacks “are likely to continue trending lower” as bridge designs “continue to leverage canonical rollup bridges for escrow.” 
In August 2022, Ethereum co-founder Vitalik Buterin <a href="https://crypto.news/vitaliks-skepticism-about-cross-chain-bridges-security-were-true/" target="_blank" rel="noreferrer noopener">raised concerns</a> about the safety of cross-chain bridges, saying that multi-chain solutions are more reliable as keeping possession of a native blockchain’s assets within the original network is safer than keeping tokenized versions of cryptocurrencies. 
 Read more: <a href="https://crypto.news/bnbchains-cross-chain-bridge-exploit-shakes-crypto-community/"> BNB Chain’s cross-chain bridge exploit shakes crypto community </a>

Coinbase reveals reasons behind recent bridge hacks in crypto

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