after the loss of nearly $200 million in a security exploit on crypto protocol Nomad, security experts insisted that more education and security protocols are needed to protect web3 communities from hackers.
“The crypto ecosystem is currently in a nascent phase of adoption,” Nick Percoco, chief security officer at Kraken, told Marketingwithanoy. “Despite the tremendous interest in recent years, there is an educational gap that has yet 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 about $190.7 million worth of crypto in a hack Monday, leaving the protocol locked by about $15,000 in total value (TVL, or total user funds in a DeFi). protocol), according to data on the decentralized financial tracking platform DefiLlama.
Like other cross-chain bridges, Nomad allows its users to transfer assets from one blockchain to another via packaged tokens, Victor Young, founder and chief architect of the Analog interoperability network, told Marketingwithanoy.
The motivation for malicious actors in the crypto bridge space is significant as a small vulnerability can run into millions of dollars, Percoco noted.