Chainlink, a leading blockchain platform, has recently launched a groundbreaking cross-chain messaging app called Transporter. The app aims to address the significant security concerns surrounding cross-chain cryptocurrency transfers, according to a spokesperson from Chainlink.
Transporter, built on Chainlink’s Cross-Chain Interoperability Protocol (CCIP), provides a user-friendly interface and seeks to enhance the security of cross-chain crypto transfers. Cross-chain bridges, which facilitate transactions between different blockchain networks, have been identified as major vulnerabilities in the crypto space.
One notable incident occurred in 2022 when Axie Infinity’s Ronin Bridge was exploited, resulting in the loss of over $600 million worth of cryptocurrency. This incident highlighted the inadequacy of the security measures in place, specifically a private key multi-signature scheme.
Transporter addresses these vulnerabilities by allowing users to track their cross-chain transactions in real-time using Chainlink’s CCIP Explorer. Importantly, there are no additional transaction fees beyond the CCIP service provider fee.
Currently, Transporter supports several blockchain networks, including Arbitrum, Avalanche, Base, BNB Chain, Ethereum, Optimism, Polygon, and WEMIX.
The need for enhanced security in cross-chain transfers is evident, as cross-chain vulnerabilities have accounted for over 48% ($2.83 billion) of the total value lost to exploits in decentralized finance (DeFi) protocols since 2016. In fact, DeFi hacks have resulted in a staggering $5.85 billion worth of cryptocurrency being stolen.
Transporter aims to mitigate these vulnerabilities and provide safer cross-chain transfers for both institutional and retail users. Despite a decrease in cross-chain exploits since the beginning of the year, hackers are still actively targeting blockchain bridge vulnerabilities. For instance, Orbit Chain fell victim to a cross-chain bridge vulnerability in January, resulting in the loss of $81 million worth of digital assets.
In related news, Binance Labs, a prominent blockchain investment firm, has shifted its investment focus to Bitcoin DeFi.