Ergo's Rosen Bridge is Live

By Ether Crunch | Ether Crunch | 16 Jun 2024


 

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What is a Bridge?

A bridge is a tool to facilitate the transfer of one type of cryptocurrency to another. Bridges allow for interoperability between different blockchains. However, bridges are also a target for hacks. Bridges are typically the weakest link; they aren’t located on any blockchain, so they lose that inherent security and they are incredibly complex. That complexity means far more susceptibility to hacks. Many cryptocurrency hacks have been done on bridges:

  • Harmony One: On June 23, 2022, the bridge, Horizon, was hacked for $100 million. This failure was due to the multi-sig wallet having only 4 people in control. This centralization led to only 2 signings necessary to approve a transaction. Hackers were able to take advantage of this centralization to steal funds.
  • Axie Infinity: On March 23, 2022, the bridge Ronin was hacked for $650 million. The Ronin Bridge had 9 validators and 5 of those validators were compromised. Due to this, hackers were able to steal funds.
  • Wormhole Bridge: On February 2, 2022, the Wormhole Bridge was hacked for $320 million. The cause, in this case, was that a bug had not been fixed in the system and the hacker was able to exploit the bridge given that there wasn’t any update to the system.

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What makes the Rosen Bridge Unique?

“The Rosen Bridge prioritizes security over transaction speed.” To this end, they have developed a two-part authentication system. In this system, there are watchers and guards. The watchers monitor the events on the network and reach a consensus, whereby the Guards are notified and they will verify the event. In other words, when the user initiates a transaction, the Watchers will verify them and then relay them to the Guards, who will sign the transaction, ensuring their validity. The key differences of the Rosen Bridge can be summarized in the following:

  • Focus on Security: Given that the Rosen Bridge prioritizes security, it appeals to the trustless aspect of cryptocurrency and makes it an ideal place for developing dApps. Compared to other bridges, the Rosen Bridge may sacrifice speed for security, ensuring that all transactions and other aspects of the bridge are protected.
  • Multi-Signature Authentication: The Rosen Bridge uses a multi-authentication system to ensure security. Through the system of Watchers and Guards, there is an aspect of redundancy in the system that enables far greater security than a conventional bridge could offer. Additionally, conventional bridges typically have far simpler systems to establish security as compared to the Rosen Bridge.
  • Contract Deployment: Typically, bridges operate independently of a blockchain, yet the Rosen Bridge is deployed on the blockchain, meaning that it inherits some of the security the blockchain uses. Additionally, this reduces the potential for attacks on the bridge by hackers.

All in all, the Rosen Bridge represents a new type of bridge with a new style of authentication and security.

If you want to learn more, check out the links below:

Rosen Bridge: Bitcoin Bridge LIVE

Ergo’s Rosen Bridge: A New and Better Way to Interact Cross-Chain

Thank You for Reading

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Ether Crunch
Ether Crunch

Basics to blockchain, crypto, and ethereum.

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