Table of Contents
- Multichain.
- why Vitalik butrin just ignored the Cross-chain technique ?
- Multiple Hacks on CrossChain Bridges.
- Vitalik butrin Comments on Cross-Chain Security .
- Cross Chain Solution will lead To Multi-Chain (Direct Integration of Blockchains with each Other ).
- ICP (Internet Computer Protocol )
- Polkadot (Multichain).
- EXRN CHAIN.
Multichain.
Dear readers welcome to the new topic of Multichain ( Multichain is a process in which two different blockchains Integrate & Communicate with Each other)
why Vitalik butrin just ignored the Cross-chain technique ?
Let’s explore As per Vtalik Buterin, the co-founder and chief scientist of Ethereum, has sounded the alarm over the security of cross-chain bridges, warning of their vulnerability in the event of 51% attacks.
Lets Explore 1st What happen with Cross-Chain bridges in Past .
Multiple Hacks on CrossChain Bridges.
Cross-chain protocols hit hardest by hackers in 2021.
- On Dated :-18/1/2022 Cross-chain bridge project Anyswap announced that the new V3 across chain liquidity pools was hacked in the morning yesterday, resulting a total loss of 5.5 million MIM and 2.39 million USDC. Hackers address is 0x0ae1554860e51844b61ae20823ef1268c3949f7c. According to Etherscan, the hackers have sold all the MIMs and obtained 5.48 million DAI, which means that AnySwap’s total loss is more than $7.87 million.
2. THORChain suffered multiple exploits,
3. Poly Network was hit by the largest Defi hack on record worth $600M
(although the funds were eventually returned).
4. Chainswap and AnySwap were also successfully targeted by hackers.
Vitalik butrin Comments on Cross-Chain Security .
Buterinʼs comments come as low-cost EVM-compatible Layer 1 networks seek to capitalize on Ethereumʼs sky-high gas fees. To prevent liquidity from becoming siloed within one particular network, myriad decentralized and centralized bridges have emerged to enable capital to flow freely between various networks. However, both the security and decentralization of many bridges have been called into question.
“Now, imagine what happens if you move 100 ETH onto a bridge on Solana to get 100 Solana-WETH, and then Ethereum gets 51% attacked. The attacker deposited a bunch of their own ETH into Solana-WETH and then reverted that transaction on the Ethereum side as soon as the Solana side confirmed it. The Solana-WETH contract is now no longer fully backed, and perhaps your 100 Solana-WETH is now only worth 60 ETH. Even if there’s a perfect ZK-SNARK-based bridge that fully validates consensus, it’s still vulnerable to theft through 51% attacks like this.”
“The problem gets worse when you go beyond two chains. If there are 100 chains, then there will end up being dapps with many interdependencies between those chains, and 51% attacking even one chain would create a systemic contagion that threatens the economy on that entire ecosystem.”
Buterin emphasized “the fundamental security limits of bridges” as the basis of his skepticism regarding cross-chain applications in a comment posted to Reddit on Jan. 8.
“Given that itʼs going to happen
Regardless, the goal shouldn’t be to
Avoid cross-chain, but have
Protections in place.”
Vitalik Buterin
Buterin argues that blockchains can “maintain many of their guarantees even after a 51% attack,” contradicting popular perceptions that “everything breaks” for a network in the event of a successful 51% attack.
“Suppose that you have 100 ETH on Ethereum, and Ethereum gets 51% attacked, so some transactions get censored and/or reverted,” wrote Buterin. “No matter what happens, you still have your 100 ETH. Even a 51% attacker cannot propose a block that takes away your ETH, because such a block would violate the protocol rules and so it would get rejected by the network.”
“Even if 99% of the hash power or stake wants to take away your ETH, everyone running a node would just follow the chain with the remaining 1%, because only its blocks follow the protocol rules.”
Etherium Layer 2s
“If you had 100 ETH, but sold it for 320000 DAI on Uniswap, […] at the end of the day you still have a sensible outcome – either you keep your 100 ETH or you get your 320000 DAI,” Vitalik said. “The outcome where you get neither [or both] violates protocol rules and so would not get accepted.”
Buterin noted that the same is true of Ethereum Layer 2s, asserting that “proper” L2s like Optimism and Arbitrum will revert alongside the mainnet in the event of an attack. There is no way to attack said networks separately to Ethereumʼs L1.
Using Wrapped Ether (WETH) held on a Solana bridge as an example, Buterin warns that assets held in cross-chain bridges in the event of a 51% attack would not boast the same guarantees, posing:
“The attacker deposited a bunch of their own ETH into Solana-WETH and then reverted that transaction on the Ethereum side as soon as the Solana side confirmed it. The Solana-WETH contract is now no longer fully backed, and perhaps your 100 Solana-WETH is now only worth 60 ETH.”
Vitalik warns that this issue is exacerbated as the number of chains connected to a given bridge increases, warning that an attack targeting a protocol “with many interdependencies” between chains could cause “a system contagion that threatens the economy on that entire ecosystem.”
While acknowledging that his worst-case predictions are unlikely to materialize soon, Buterin warned that the systemic risks posed by cross-chain bridge security increase alongside their adoption.
Reddit-user “exactly_aquatic” supported Buterinʼs comments, asserting that “every L1<->L1 bridge in production has a trusted node or network in the middle that can freeze the bridge deposits.”
Cross Chain Solution will lead To Multi-Chain (Direct Integration of Blockchains with each Other ).
Examples:-
ICP (Internet Computer Protocol )
DIRECT INTEGRATION WITH BITCOIN
The Internet Computer protocol will be extended to add smart contracts to Bitcoin. An application of Chain Key cryptography will give each canister their own Bitcoin public key, thus directly integrating with the Internet Computer blockchain with the Bitcoin network. In particular, smart contracts on the Internet Computer will be able to hold, send and receive their own Bitcoin. by this update ICP Blockchain will Directly Start Communicate with BTC network .
State : Under development
https://dfinity.org/howitworks/direct-integration-with-bitcoin/
Polkadot (Multichain).
Polkadot is a network protocol that allows arbitrary data—not just tokens—to be transferred across blockchains.This means Polkadot is a true multi-chain application environment where things like cross-chain registries and cross-chain computation are possible.
Early blockchains were like walled gardens closed off to other networks. But as the number of chains for specific use cases continues to rise, so does the need for cross-chain communication and interoperability. Polkadot’s cross-chain composability and message passing allows shards to communicate, exchange value, and share functionality, opening the door to a new wave of innovation.
State: Under development
Source:polkadot.
EXRN CHAIN.
EXRN is about blockchains ‘communicating’ with each other, not just about bridging, wrapping and swapping. Communication includes cross-chain contracts, data transfers, oracle feeds, and more.
State: Under development