Following the loss of almost $200 million in a security exploit on crypto protocol Nomad, security experts insisted that more education and security protocols are necessary for protecting web3 communities from hackers.
“The crypto ecosystem is currently in a nascent stage of adoption,” Nick Percoco, chief security officer at Kraken, said to TechCrunch. “Despite the surge of interest over recent years, there is an educational divide that still needs to be bridged for crypto adoption to be truly successful.”
Nomad, a crypto bridging protocol that allows users to trade tokens between a number of blockchains, lost approximately $190.7 million in crypto in a hack on Monday, leaving the protocol with about $15,000 total value locked (TVL, or total user funds in a DeFi protocol), according to data on decentralized finance tracking platform DefiLlama.
Like other cross-chain bridges, Nomad allows its users to transfer assets from one blockchain to another through wrapped tokens, Victor Young, founder and chief architect at interoperability network Analog, said to TechCrunch.
The motivation for malicious actors in the crypto bridge space is substantial because a minor vulnerability can yield millions of dollars, Percoco noted.
