Bridge Security Is ‘Unresolved Technical Challenge,’ Chainalysis Research Director Says

The crypto industry needs to overcome its issues with bridge security, according to Kimberly Grauer, director of research at software company Chainalysis Inc.

“Bridge security is an unresolved technical challenge in the industry,” Grauer said during an appearance on CoinDesk TV’s “First Mover” on Monday.

Bridges in particular are one of the leading types of decentralized finance (DeFi) protocols that have been targeted extensively by hackers, according to Grauer. “The perception around that is not that there’s a honey pot of money, but a lot of funds stored in one place that are backing funds on another blockchain,” she said.

Read more: $114M Mango Markets Exploiter Outs Himself, Returns Most of the Money

Non-centralized storage of money in combination with bridge accessibility has made them “a target,” she added.

According to Chainalysis findings, October – even with two weeks to go – has become the worst month for crypto hacks, with upwards of $718 million being lost due to security-related crimes.

This poses a “reputational risk,” for investors and users, according to Grauer. She points out the most recent hack – which saw more than $100 million fizzle out of Solana-based DeFi platform Mango (before eventually being returned) – as an example that could decrease crypto consumer confidence.

“In order for people to comfortably invest in DeFi protocols,” said Grauer, the industry will need to figure out better ways of building trust in the blockchain. She called for industry leaders to “come together” and “join forces” in an effort to improve code and prioritize cybersecurity.

“It’s not just one protocol that was hacked that has impact, but it’s also the fact that you’re less eager to invest in an existing new protocol because the hacking concept is looming in your mind,” Grauer said.

Read more: October Becomes Worst Month for Crypto Hacks With Two Weeks to Go

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