Solana

Solana loses $320 million in ETH due to DeFi ‘Wormhole’ token bridge

Solana loses $320M in ETH from ‘Wormhole’ DeFi token bridge

Things go from bad to worse for Solana. After dealing with several humiliating blockchain failures over the past year, in which developers had to shut down the blockchain and restart it to regain functionality, Solana just lost $320 million worth of Ethereum to of its “wormhole” of the DeFi token bridge. This represents 90,000 ETH tokens in all.

CoinGeek’s Kurt Wuckert Jr explained that this happened because of exploits that can occur on account-based state machines (Ethereum clones).

What is “Wormhole” and what happened?

Wormhole describes itself as an “interoperability protocol powering the seamless transfer of value and information across seven high-value chains with a single integration.”

It’s word salad for a protocol that allows users to move digital assets across multiple dysfunctional, non-scalable blockchains that don’t need to exist in the first place. It runs on Ethereum, Solana, Tera, and several other blockchains with a strong focus on decentralized finance (DeFi).

According to a analysis reported by TechCrunch, the attacker took advantage of an exploit in the bridge between the Ethereum and Solana blockchains. Bridges are combinations of smart contracts that enable interoperability between blockchains. The attacker minted 120,000 wETH, then topped 10,000 ETH and 80,000 ETH in 25 minutes.

All of this doesn’t have to happen

The blockchain industry is still in its early stages of understanding, and over time participants will realize that there is no need for bridges because there is no need for multiple blockchains first. location. The original Bitcoin protocol (BSV) scales infinitely, is capable of complex transactions involving smart contracts, and you can create tokens in it for different purposes.

If even half of the energy spent playing with blockchains like Ethereum and Solana was spent building and scaling Bitcoin (BSV), the industry would be in a much different place. Luckily, knowledgeable people are working on scaling it up and restored its original capabilities, but it’s worth pointing out that there is a ton of wasted energy in this industry and these exploits and hacks have no doesn’t have to be a reality. at all.

With The UTXO Model of Bitcoin, such exploits do not occur. You would almost think that Satoshi Nakamoto knew what he was doing when he painstakingly designed Bitcoin for decades.

How long will users and app developers tolerate broken promises, dysfunctional blockchains that need to be restarted and fail to adapt, and mass theft and fraud before they realize the truth ? Wormhole’s exploit is just the latest in a long line of preventable financial heists in “crypto”. It doesn’t have to be that way. To repeat a well-known mantra: Bitcoin (BSV) solves this problem.

To follow The CoinGeek Crypto Crime Cartel series, which plunges into the flow of groups – one of BitMEX for Binance, bitcoin.com, Blockstream, Metamorphose, Coinbase, Ripple,
Ethereum, FTX and Attached—who co-opted the digital asset revolution and turned the industry into a minefield for naïve (and even experienced) market players.

New to Bitcoin? Discover CoinGeek bitcoin for beginners section, the ultimate resource guide to learn more about Bitcoin – as originally envisioned by Satoshi Nakamoto – and blockchain.