Warning: unlink(/tmp/jnewslibrary-Xyw0aP.tmp): No such file or directory in /home/customer/www/coinparative.com/public_html/wp-admin/includes/class-wp-filesystem-ftpext.php on line 142
Axie Infinity’s Ronin Hack Exposes Risks of Proof-of-Stake and Centralization – Analysts | Coinparative
Coinparative

  • News
    • Crypto News
    • Blockchain News
    • Altcoin News
    • Press Release
    • NFT News
    • Metaverse
    • Web3.0 News
    • Trending
  • Insights
    • Explainer
    • Research
  • Guides
  • Market
    • Market analysis
    • Market News
    • Reviews
    • Price Index
  • Videos 🚀
No Result
View All Result
  • About Us
  • Contact
  • jeet-detector-bot
    JDB(JDB)
    $0.00-0.61%
  • bitcoin
    Bitcoin(BTC)
    $0.00-2.21%
  • ethereum
    Ethereum(ETH)
    $0.00-3.29%
  • usdex-stablecoin
    USDEX(USDEX)
    $0.00-0.53%
  • tether
    Tether(USDT)
    $0.00-0.01%
  • binancecoin
    BNB(BNB)
    $0.00-1.47%
  • usd-coin
    USD Coin(USDC)
    $0.000.0100%
  • ripple
    XRP(XRP)
    $0.00-4.24%
  • binance-usd
    Binance USD(BUSD)
    $0.000.070%
  • cardano
    Cardano(ADA)
    $0.00-4.13%
  • dogecoin
    Dogecoin(DOGE)
    $0.00-5.77%
  • matic-network
    Polygon(MATIC)
    $0.00-5.69%
  • okb
    OKB(OKB)
    $0.004.82%
  • solana
    Solana(SOL)
    $0.00-4.68%
  • shiba-inu
    Shiba Inu(SHIB)
    $0.00-3.95%
  • staked-ether
    Lido Staked Ether(STETH)
    $0.00-3.36%
  • polkadot
    Polkadot(DOT)
    $0.00-4.70%
  • litecoin
    Litecoin(LTC)
    $0.00-3.97%
  • avalanche-2
    Avalanche(AVAX)
    $0.00-5.55%
  • tron
    TRON(TRX)
    $0.00-1.04%
View All
Coinparative
Home News

Axie Infinity’s Ronin Hack Exposes Risks of Proof-of-Stake and Centralization – Analysts

April 2, 2022
in News
242 10
A A
0
Axie Infinity’s Ronin Hack Exposes Risks of Proof-of-Stake and Centralization – Analysts
Share on FacebookShare on Twitter

 

The recent hack of Axie Infinity’s Ronin bridge reveals how proof-of-stake (PoS) chains still struggle with a fundamental flaw in their design, with speed and energy efficiency prioritized over security, an analyst at crypto exchange Huobi has said.

“This hack reflects the continuing challenges that blockchains and operators face in balancing user experience and security,” Huobi Research Institute head Flora Li said in a commentary on Wednesday, suggesting that the low number of nodes on the Ronin network was a fundamental problem.

Although Axie Infinity (AXS) developer Sky Mavis has “pledged to raise the number of required nodes to eight,” this is not enough, Li said. She argued that,

“It still doesn’t solve the fundamental problem of how proof-of-stake blockchains can keep transactions fast, user-friendly, and energy-efficient without compromising security.” 

The analyst added that Ronin has taken “shortcuts to relieve network bottlenecks,” and said that cutting down the number of nodes on the network has made it “easier for hackers to exploit.”

The comments from Huobi’s Li came after news broke on Tuesday that the Ronin bridge, which is used to connect the Ronin network to other blockchains, had been drained by hackers for ETH 173,600 and USDC 25.5m, now worth some USD 615m.

Ronin is a sidechain to the Ethereum (ETH) blockchain developed specifically for Sky Mavis’ crypto-based play-to-earn game Axie Infinity.

Speaking on stage at the Los Angeles NFT Conference on Tuesday, Jeff Zirlin, the co-founder and growth lead at Sky Mavis, reiterated that the team is talking to law enforcement, and said some of the stolen tokens had already been sent to exchanges by the hackers.

Despite the funds already being on the move, Zirlin insisted that there’s a chance that the hackers can still be identified.

Notably, the hacking incident was confirmed almost a week after it happened, and the Ronin team’s response to it was to halt the Ronin bridge and a related decentralized exchange (DEX).

As can be expected, this was quickly pointed out by some proof-of-stake critics on Twitter:

Meanwhile, other industry players also hinted that a lack of focus on security and decentralization could be to blame for the attack.

EA Sports, a contributor to DeFi protocol Harvest Finance said in an emailed comment that Ronin is a sidechain secured by nine validators, while only “5 (+50%)” are needed to attack the network – “the attackers got access to the system that operates four of the nodes, and found a bug to access another node.” 

They added that,

“This centralization of the validators made it much easier to compromise security and another example of why decentralization is critical.”

A similar concern was also shared by Kadan Stadelamn, chief technology officer of DeFi platform Komodo (KMD), who said the hack “shows why centralized cross-chain bridge solutions may threaten the adoption of cryptocurrencies.”

“Having only nine validators for the Ronin bridge, and four belonging to the same person, is concerning,” he said, adding that pooling all user funds into just one wallet address “is the exact definition of centralization.”

Meanwhile, Ryan Lewis, Technology Consultant at digital asset protection provider Coincover, said that the Ronin hack shows “the classic challenges of usability trumping security when these technologies are so young.”

“There is no doubt this will continue to be the case as the crypto industry matures but the stakes are extremely high and security can certainly not take a back seat,” he said in an emailed comment. 

____


– Crypto Security in 2022: Prepare for More DeFi Hacks, Exchange Outages, and Noob Mistakes 
– Digital Collectibles Marketplace VeVe Loses ‘Large Amount of Gems’ in an Exploit

– ApeCoin Smart Contract Exploited, ‘Well-Prepared Claimer’ Walks Away With USD 380K
– DeFiance Founder’s USD 1.76M Loss is a Lesson For NFT Investors

– Ethereum Staking Sees Accelerating Growth Ahead of Merge
– Ethereum Classic Jumps 54% In a Week, But History Shows That the Rally May Not Last



Source: Crypto News

Share196Tweet123Share34Pin44ShareSend

Related Articles

Justin Sun backs FTX Debt token ‘FUD’ in possible securities law breach
Blockchain News

Justin Sun backs FTX Debt token ‘FUD’ in possible securities law breach

February 5, 2023
1.4k
Meme Coin Economy Swells by $5.8 Billion in Less Than a Month, Suggesting Demand for Meme Tokens Still High – Markets and Prices Bitcoin News
News

Meme Coin Economy Swells by $5.8 Billion in Less Than a Month, Suggesting Demand for Meme Tokens Still High – Markets and Prices Bitcoin News

February 5, 2023
1.4k
Bitcoin, Ethereum and select altcoins set to resume rally despite February slump
News

Bitcoin, Ethereum and select altcoins set to resume rally despite February slump

February 5, 2023
1.4k
The potential NFT loan market, accessing liquidity through digital assets – SlateCast 51
Blockchain News

The potential NFT loan market, accessing liquidity through digital assets – SlateCast 51

February 5, 2023
1.4k
Visa’s crypto strategy targets stablecoin settlements
News

Visa’s crypto strategy targets stablecoin settlements

February 5, 2023
1.4k
Why open interest and trading volume are so important in options trading
Blockchain News

Why open interest and trading volume are so important in options trading

February 5, 2023
1.4k
Load More

Discussion about this post

Coinparative

2022 © All Rights Reserved.

Coinparative specializes in the digital News and research on cryptocurrency, Digital Assets and Blockchain

  • Advertise
  • Privacy Policy
  • Terms
  • About Us
  • Contact

Follow Us

No Result
View All Result
  • News
    • Crypto News
    • Blockchain News
    • Altcoin News
    • Press Release
    • NFT News
    • Metaverse
    • Web3.0 News
    • Trending
  • Insights
    • Explainer
    • Research
  • Guides
  • Market
    • Market analysis
    • Market News
    • Reviews
    • Price Index
  • Videos 🚀

2022 © All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
DON’T MISS OUT!
Subscribe To Newsletter
Be the first to get latest updates and exclusive content straight to your email inbox.
Stay Updated
Give it a try, you can unsubscribe anytime.
close-link
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.

Warning: unlink(/tmp/jnewsfirstload-qvc6n1.tmp): No such file or directory in /home/customer/www/coinparative.com/public_html/wp-admin/includes/class-wp-filesystem-ftpext.php on line 142