Chainlink, a leading blockchain company, has released a new messaging app called Transporter that aims to address the security concerns surrounding cross-chain cryptocurrency transfers. According to a spokesperson from Chainlink, Transporter is built on the Cross-Chain Interoperability Protocol (CCIP) developed by Chainlink. The app provides a user-friendly interface and enhances the security of cross-chain transactions.
Cross-chain bridges are crucial for facilitating transactions between different blockchain networks. However, they also present significant vulnerabilities in the crypto industry. In fact, one of the largest crypto exploits in history occurred in 2022 when the Ronin Bridge of Axie Infinity was drained of over $600 million worth of cryptocurrency. This incident highlighted the inadequacy of the security measures in place, particularly the private key multi-signature scheme.
Transporter offers real-time tracking of cross-chain transactions through Chainlink’s CCIP Explorer. Importantly, it doesn’t charge any additional transaction fees beyond the CCIP service provider fee. The app currently supports various blockchain networks, including Arbitrum, Avalanche, Base, BNB Chain, Ethereum, Optimism, Polygon, and WEMIX.
According to data from DeFiLlama, cross-chain vulnerabilities account for 50% of the total value lost to exploits in decentralized finance (DeFi) hacks since 2016. In total, DeFi protocols have been hacked for approximately $5.85 billion worth of cryptocurrency, with cross-chain bridges contributing around $2.83 billion to this total.
Transporter aims to mitigate these vulnerabilities and make cross-chain transfers safer for both institutional and retail users. Although the number of cross-chain exploits has decreased since the start of the year, hackers continue to exploit weaknesses in blockchain bridges. For example, in January, Orbit Chain lost $81 million worth of digital assets due to a vulnerability in a cross-chain bridge.
In related news, Binance Labs has shifted its investment focus to Bitcoin DeFi projects.