DEX Portal’s multichain future without wrapped tokens

According to Vitalik Buterin, most cross-chain bridges are highly vulnerable in 51% of attacks. Locking and wrapping funds onto other chains is neither trustless nor decentralized.

Portal, a true cross-chain DEX based on Bitcoin (BTC/USD), believes there will be no place for wrapped tokens or third-party custody of assets in the future. Users’ assets should only be locked during trade execution.

The biggest hacks in history were due to cross-chain vulnerabilities

THORChain, MultiChain, pNetwork, Wormhole, and Poly Network are just some of the cross-chain protocols that have suffered security breaches recently. Poly Network suffered the biggest DeFi hack ever worth $600 million. Wormhole lost 120,000 Ether (ETH/USD) worth over $321 million.

Portal’s executive chairman Chandra Duggirala said:

Neil Player, head of crypto security company Staghead Crypto, added:

Risks with cross-chain solutions

Cross-chain solutions have more attack vectors because of the larger network surface area. In addition, most cross-chain bridges are too centralized.

Johnny Dilley, the inventor of Liquid Federation (Blockstream), noted: