Cross-Chain Applications Receive A Negative Response From Vitalik Buterin

Parasshuram Shalgar
January 11, 2022 Updated September 5, 2023
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Vitalik Buterin

The “basic security limitations of bridges,” according to Ethereum’s co-founder, are the primary reason for his dislike. On Friday, a Reddit post by Vitalik Buterin, the co-founder of Ethereum (ETH), underlined major security problems around cross-chain bridges in the blockchain ecosystem, which he believes are being overlooked. 

Because native assets (such as Ethereum on Ethereum and Solana on Solana) are stored directly on the blockchain, according to Buterin, they are more resistant to 51 percent attacks. However, even if hackers are successful in censoring or reversing transactions, they cannot propose blockages that would allow someone to lose their cryptocurrency.

The regulation also applies to the Ethereum application, a smart contract. Consider this scenario: hackers launch a 51 percent attack (by controlling 51 percent of all circulating Ethereum supply) while an investor swaps 100 ETH for 320,000 DAI stablecoin, the end state remains invariant, which means the investor will always receive either 100 ETH or 320,000 DAI, depending on the circumstances.

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Statement From Buterin on Cross-Chain Bridges 

Buterin went on to say that cross-chain bridges do not have the same level of security as the rest of the network. If, as an example, an attacker used their own Ethereum (ETH) to deposit into an Ethereum (ETH) bridge to obtain Solana-wrapped Ether (WETH), and then reverted that transaction on the Ethereum side as soon as the Solana side confirmed it, it would cause catastrophic losses to other users whose tokens are locked in the SOL-WETH contract, because the wrapped tokens are no longer backed by the original on a 1:1 ratio.

Yet another point brought up by Buterin is that the security attack could harm scaling if more bridges are added to the cross-chain network. When considering a hypothetical network of 100 chains, the high level of interdependence and overlapping derivatives imply that a 51 percent attack on one chain, particularly a small-cap one, may induce a system-wide epidemic. In the opinion of Crypto 51, it can cost up to $1.78 million an hour for hackers to launch a 51 percent attack vector against the Ethereum network. For blockchains such as Bitcoin Cash, on the other hand, the cost can be as low as $13,846 per hour.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Parasshuram has been online in various capacities as a pro-blogger, top researcher, and now a senior editor at CoinGape.com. He has over 14 years of experience in the field of online publishing. Mr Shalgar can be reached at [email protected].
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.