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BNB Chain responds with the next step in cross-chain security after network exploits

garretschoenbergOctober 17, 2022
BNB Chain responds with the next step in cross-chain security after network exploits

The native blockchain of Binance Coin (BNB) and the Binance cryptocurrency exchange, BNB Chain, has been exposed to security-related developments in the last month.

On Thursday, October 6th, the network was hit by a multi-million dollar cross-chain attack. Due to this incident, BNB Chain has temporarily suspended all withdrawal and deposit activities on its network.

Initially, the network outage announcement cited “irregular activity” and was updated to say it was “under maintenance.” Binance CEO Changpeng Zhao, As Rumors Confirmed murmured We apologize for any inconvenience caused to the BNB chain community.

However, the outage was short-lived as the BNB chain team announced that the network was back online early on October 7, just hours after the attack. Once the network resumed activity, the validator was asked to verify the location and upgrade the community’s infrastructure.

Later the same day, the BNB chain released its first public statement, thanking the community for their support during the incident and announcing next steps to ensure network security in the future.

In a statement, the BNB chain team acknowledged the exploit and apologized to users. We also thanked the community for quickly identifying and resolving the issue.

An exploit on October 6 allowed hackers to withdraw a total of 2 million BNB. That’s about $568 million at the time of writing. This number was confirmed in an official statement released by the team.

Also, 26 active validators were reported on the BNB smart chain during the incident, with a total of 44 in different time zones.

Related: BNB Chain launches new community-run security mechanism to protect users

In addition to the official figures related to the incident, BNB Chain highlighted next steps to ensure future network security against potential exploits.

On-chain governance votes decide what to do with hacked funds, whether to freeze them, and whether BNB Autoburn should be implemented to cover remaining misappropriated funds.

The community also votes for a bounty to catch hackers and a whitehat program for future bugs found.

Before the official statement was released, Zhao tweeted that he was amazed at the speed and transparency of the BNB chain team.

An August report from Chainaylsis revealed that $2 billion in cryptocurrency was stolen from cross-chain bridges last year alone. This includes major exploits such as the $190 million Nomad Bridge incident.

Michael Lewellen, Head of Solutions Architecture at OpenZeppelin, told Cointelegraph: In a decentralized ecosystem, “the project team should retain some administrative control” and implement some kind of monitoring.

“Comprehensive security oversight should be in place to ensure that these privileges can be used quickly when needed.”

Community initiatives like the one BNB Chain has suggested as a follow-up are productive, but real-time security monitoring is a tool that can “put the fire out before it spreads,” Lewellen said.

“Ultimately, end users can follow good security practices, but without real-time monitoring and incident response integration from developers, they are at their mercy.”

According to Lewellen, real-time, ongoing security monitoring allows for non-intrusive and non-intrusive monitoring of the processes that make up the distributed space. Researchers are also looking at reversible crypto transactions as a viable solution for fighting crime in the industry.

In a subsequent statement, BNB Chain talked about decentralizing the network. This is because many of his Twitter critics surfaced in light of the exploit.

One user tweeted that the network might appear decentralized to the “untrained eye”, but it really isn’t.

The BNB chain responded with a statement that “decentralization is a journey”, saying that while it is currently not as decentralized as the Ethereum blockchain, it is “more decentralized than many others”.

An update followed to detail the components of the blockchain and the role Binance plays in the ecosystem. You can become a network validator.

“No one has control over decisions made here, especially Binance.”

However, discussions have raged among Twitter users, with some applauding the team’s responsiveness and others. post A meme about centralization about networking.

Zhao also jumped into the discussion, posting his thoughts on centralization and decentralization, echoing sentiments from a similar article he wrote three years ago.

Less than a week after the BNB chain exploit, another exploit was seen in the space that stole $100 million from Mango Markets, Solana’s decentralized financial platform. Also, the Solana network is often said to be too centralized.

Regardless of the hacking and centralization debate, the network pushed the latest testnet upgrade v1.1.16 on October 12th.