Portal Removes The Need For Wrapped Tokens And External Custodians For Cross-Chain Asset Transfers

Cross-chain bridges can unlock tremendous potential in the crypto world. But, unfortunately, this technology has certain issues and the wrapped tokens they use. Portal wants to change that narrative by removing the need for wrapped assets or third-party custody of user assets. Cross-Chain Bridges Are A Security Risk Those are the findings of Ethereum co-founder Vitalik Buterin, uttered last month. There is a good reason why Buterin uses harsh language, as cross-chain bridges are prone to 51% attacks. When such an attack occurs, hackers and other culprits control the system and can defraud users. Although a 51% attack is not a permanent problem, attackers’ possibility to steal funds needs to be nipped in the bud. These bridges wrap and lock funds on other chains to facilitate transfers in their current form. It is an elegant solution, although one that introduces unnecessary security concerns. More specifically, the wrapping and locking aspect isn’t decentralized or trustless. Additionally, that approach can lead to security incidents, such as the ones affecting MultiChain, THORChain, pNetwork, Poly Network, and others. Staghead Crypto Head Neil Player adds: “Cross chain bridges present a unique set of security risks and these types of exploits are not a surprise. It is a reminder how bleeding edge a lot of the applications that run on top of blockchains are. Exploits such as what occurred on Wormhole are expected t...