Maneuvering Digital Assets Using “Wormhole”
By Laxmikant Khanvilkar
Introduction of digital assets such as cryptocurrencies, non-fungible tokens or (NFTs), etc have opened of several avenues that an investor couple explore. This multi-billion-dollar sector garnered constant support from investors, retail traders in search of newer investments, payment tool over other traditional medium of exchange. Supported by the unparalleled excellence of blockchain technology, crypto offers a plethora of advantages to its users.
The blockchain platform enriches users with a seamless experience of moving their digital coins and NFTs between multiple blockchain networks. Wormhole encourages exposure to Decentralized Finance and helps developers to create revolutionary projects on top of the native blockchain cluster.
The way spike in digital currencies prices encouraged investors to move many of their holdings to hot wallets or online exchange storage, which has resulted in increased instances of hacking. To avoid illegal excess, these currencies are more often than not are found stashed in cold wallets – a storage devices such as pen drives that are usually not connected to internet.
According to transaction data, the hacker who was responsible for the $321 million Wormhole bridge breach has moved a substantial portion of the stolen cash. On January 23, the hacker transferred $155 million worth of Ether (ETH) to a decentralised exchange (DEX).
The Wormhole hack was the third greatest cryptocurrency theft in 2022. This occurred after an issue was discovered on February 2 in the protocol’s token bridge. This attack led to the theft of 120,000 Wrapped ETH (wETH), which had a total value of around $321 million.
Although, the Wormhole is designed to work as a fully decentralized, reliable, and robust message-transfer protocol for connecting multiple blockchains. In simple terms, Wormhole is a ‘bridge’ that efficiently facilitates the movement of digital assets from one blockchain to another blockchain network. The portal helps users operating on top-tier decentralized channels like Ethereum, Binance, Solana, Polygon, Oasis, etc., to communicate with each other via a transparent interface.
Though finance is the most popular application of DLT, the technology presently shows its prowess across other domains as well, including education, healthcare, banking, supply chain, etc., to name a few. The Decentralized Ledger Technology offers its users high-end security, transparency, and immutability. It has a robust suite of advantages. However, DLT has its shortcomings too. Difficulty in moving assets between blockchain networks without involving centralized platforms for managing the bridging and swapping of tokens, increases the threat of counterparty risks. Also, the lack of interoperability between chains becomes cumbersome.
The Wormhole ecosystem is secured and controlled by a group of mindfully hand-picked validator nodes, often called guardians. The guardian nodes check the activities taking place on the chains to ensure the security of transactions. The guardian nodes include famous names such as the world’s biggest staking platform, Everstake.
Wormhole strives to enhance its operations by allowing its ecosystem to support a wide range of blockchain channels.
Wormhole blockchain allows traders to move their NFT assets between multiple blockchain networks without issue. This Wormhole feature makes it stand out from other token bridges that do not support the bridging of NFTs. The robust infrastructure of the Wormhole platform supports DApps created on top of it. Developers can adopt a protocol-first design initiative and utilize the best features of individual blockchains.
Wormhole are developed to address challenges faced by cryptocurrency ecospace. The Wormhole blockchain is a powerful solution for investors looking to unleash the full potential of the fast-growing industry. It helps users move their assets across blockchains, develop DApps, and innovatively access DeFi solutions. It is simple, user-friendly, and highly interactive blockchain channel that promises to cater to the requirements of investors. In addition, the ecosystem offers access to powerful tools and services for bridging purposes.
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