Aug 9, 2022
Layne Haber, Co-founder of Connext Network, discusses the Nomad bridge hack, how it happened, and what can be done to prevent these exploits.
Show highlights:
- what Nomad is and how it works
- how the hack occurred and what the vulnerability was
- how much TVL the protocol had and how much of it was drained
- why the Nomad hack was unique
- how this exploit resembled the DAO hack on Ethereum
- the bounty program that Nomad offered and how hackers responded to it
- how Nomad is working with law enforcement, and the reasons why law enforcement has decided to get involved
- how Nomad has partnered with TRM Labs to help with tracking the hackers
- whether privacy developments in the crypto ecosystem will make it harder for law enforcement to track down hackers
- why cross-chain hacks happen so often
- what Layne thinks can be done to improve bridge security
- what mechanism can be implemented to prevent errors that enable these types of mass looting
- what Layne expects to see in the next few weeks around the Nomad exploit
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EPISODE LINKS
Layne
- Twitter: https://twitter.com/LayneHaber
Nomad Hack:
- https://www.theblock.co/post/160731/nomad-cross-chain-crypto-bridge-suffers-possible-exploit
- Sam Sun explaining the hack: https://twitter.com/samczsun/status/1554252024723546112?s=20&t=SHIZQRqJ00mmuZVXFKXuZg
- Nomad’s bounty program: https://twitter.com/nomadxyz_/status/1555293965049630722?s=20&t=RxH5UuWbBXiRLqu5gHDNyg
- Pranay Mohan’s thread: https://twitter.com/pranaymohan/status/1556402131325915137?s=20&t=RxH5UuWbBXiRLqu5gHDNyg
- $36 million recovered: https://twitter.com/nomadxyz_/status/1556681397993058304?s=20&t=makkX3SX1ezAXQSd6fdZYA
Cross-chain security:
- Chainalysis article: https://blog.chainalysis.com/reports/cross-chain-bridge-hacks-2022/
- Adam Cochran on crypto bridges: https://twitter.com/adamscochran/status/1554473323073093634?s=20&t=8YFw6sPEGfjvh12q8w7p-Q
- Vitalik’s take on cross-chain applications: https://old.reddit.com/r/ethereum/comments/rwojtk/ama_we_are_the_efs_research_team_pt_7_07_january/hrngyk8/
- Previous Unchained coverage:
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- The Chopping Block: How to Improve DeFi and Cross-Chain Bridge Security: https://unchainedpodcast.com/bridge-hacks-have-caused-1-billion-in-losses-heres-why-bridge-security-is-tricky/
- Bridge Hacks Have Caused ~$1 Billion in Losses. Here’s Why Bridge Security Is Tricky: https://unchainedpodcast.com/bridge-hacks-have-caused-1-billion-in-losses-heres-why-bridge-security-is-tricky/