GIBRALTAR, March 30, 2022 /PRNewswire/ — Yesterday it was revealed that roughly $625 million worth of cryptocurrency had been stolen from Ronin, the blockchain underlying crypto game Axie Infinity. Axie Infinity operator Sky Mavis revealed this breach on Tuesday and froze transactions on the Ronin bridge, which allowed depositing and withdrawing funds from the company’s blockchain. A hacker compromised the network nodes that validate transfers to and from the Ronin blockchain, which enabled him to withdraw funds.
On this subject, Flora Li, Head of Huobi Research Institute, commented the following:
“This hack reflects the continuing challenges that blockchains and operators face in balancing user experience and security. Axie Infinity exploded in popularity and saw a rapid influx in users on the Ronin blockchain. They took shortcuts to relieve network bottlenecks, cutting down the number of nodes that needed to be validated for transactions to just five of nine nodes, making it easier for hackers to exploit,” said Flora Li, Head of Huobi Research Institute.
“While Sky Mavis has pledged to raise the number of required nodes to eight, 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.”
Flora Li is the Head of Huobi Research Institute and an expert in the cryptocurrency industry. She previously worked in the fintech field and at Bank of China.
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About Huobi Research Institute
Huobi Blockchain Application Research Institute (referred to as “Huobi Research Institute”) was established in April 2016. Since March 2018, it has been committed to comprehensively expanding the research and exploration of various fields of blockchain. As the research object, the research goal is to accelerate the research and development of blockchain technology, promote the application of blockchain industry, and promote the ecological optimization of the blockchain industry. The main research content includes industry trends, technology paths, application innovations in the blockchain field, Model exploration, etc. Based on the principles of public welfare, rigor and innovation, Huobi Research Institute will carry out extensive and in-depth cooperation with governments, enterprises, universities and other institutions through various forms to build a research platform covering the complete industrial chain of the blockchain. Industry professionals provide a solid theoretical basis and trend judgments to promote the healthy and sustainable development of the entire blockchain industry.
SOURCE Huobi Research Institute