According to the reports from Token Terminal, the attacks on bridge technology in 2022 resulted in the theft of $2.5 Billion from the Decentralized Finance (DeFi) protocols. This emerged as a setback for several projects in the crypto space and paved the way for security and infrastructure concerns. As a result, at ETHDenver Conference 2023, the Koii Labs, the Web 3.0 protocol, and Idexo, the software company announced the midway bridge to advance deployments on–chain with the minimum line of code.
Through this solution, companies aim to provide a decentralized alternative for centralized exchanges by facilitating cross–chain transactions to self–custodian token holders. Alongside this, it aims to improve security concerns and speed up the deployment process. By using these bridges two or more blockchain networks can share data such as tokens, smart contracts, etc. Moreover, it connects different architecture and database networks.
The primary risk associated with bridges is that they require wallet signup to execute transactions on the destination chain. Thus, the new middleware bridge forces the randomization of signers with decentralized nodes to a large number of signers. The reward and staking mechanism ensure that the size of transactions would be limited.
Furthermore, the Bridge focuses on addressing the liquidity across pools and the DeFi ecosystem. Through the bridge, the self – custodied tokenholders can choose their origin and destination chain. It includes zero–knowledge proofs and cross-chain messaging protocol and it further supports a range of EVM and non – EVM chains.
