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How Global Blockchain Teams Stopped Over $470 Million BNB Being Hacked

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On October 6th, the BNB chain abruptly stopped after a large-scale exploit occurred. By attacking one of the key bridges in his blockchain system, a hacker was able to exploit the flawed code to rapidly create tokens.

In just a few hours, they had generated nearly $600 million in value and were rapidly liquidating it from their platform. However, due to the quick response of the validator team, the chain was able to prevent a huge amount of capital from flowing out of the ecosystem.

In this article, we look at these BNB chain validators and show you exactly how their swift action and international response have saved the platform, its customers, investors and millions of dollars.

Let’s get started right away.

What happened?

An exploit has occurred on BNB Chain, a blockchain that works with Binance, one of the world’s leading cryptocurrency exchange platforms. Hackers targeted BSC Token Hub, the central bridge within the chain’s infrastructure.

By finding an exploit on the bridge, hackers were creating additional BNB tokens at an alarming rate. These hackers effectively created new cryptocurrencies directly for themselves and were able to quickly siphon the capital they created into their own accounts for liquidation.

Within 90 minutes, hackers were nearly 2,000,000 new BNB coinsBefore the hack was discovered, this figure was worth about $570 million. A team of hackers began liquidating this giant number and getting it off the chain as quickly as possible.

Luckily, validators noticed the strange activity and rapid mining of the new BNB and took action. By alerting the right people and freezing the chain, we stopped hackers from withdrawing the full amount.

Instead of the full $570 million, exploiters could only steal it. $100 million worth of BNBThis was still a big impact, but BNB token value is trending downward Since the attack, this is just a fraction of the total damage that could have been done.

Do you know who used the exploit?

As of October 24th, Binance Releases Information It claims to be close to narrowing down who did the hacking. With the help of law enforcement, they have a better idea of ​​who may have committed the exploit.

That said, they’re still not sure as the stolen $100 million appears to be completely gone. I am dedicated to

How Validators Solved the Problem

In this scenario, there is no denying that the quick response from the BNB chain validator was a saving grace. If the hackers hadn’t noticed the strange happenings from the bridge right away, they would have spent more time liquidating even more funds.

Considering we were able to move $100 million out of the system in just 90 minutes, the difference between being discovered after 30 minutes could have been catastrophic for the ecosystem. The BNB chain has 26 unique validators spread across the globe. Their vigilance allowed the system to respond quickly and neutralize the threat as quickly as possible.

But the support provided by validators doesn’t stop there. After the event, BNB’s outage resulted in a massive outflow of funds across the system. When the blockchain went down, all validators were out of service.

Without validators, DeFi applications will not be able to run properly, and the majority of 3rd blockchain applications on the system will cease to function. This creates a snowball effect and causes more problems down the road.

One of the BNB chain validators, Uncle, provided a solution. Ankr’s RPC service responded very quickly after the BNB outage. Unlike other validators who were hesitant to bring their services back online, Ankr’s RPC service resumed immediately the moment the BNB chain resumed.

During the outage, Ankr’s RPC servers remained pegged directly to the blockchain to ensure all data was consistent the moment the ecosystem was back online. Ankr is also able to do this thanks to the international team they employ. Rather than focusing on his one specific region, Ankr spreads its DevOps team around the world.

This approach allows us to cover a 24-hour window using time zones, ensuring our team of engineers is always active, online and ready to respond. The team’s international placement reflects blockchain’s core ideals. The spread of distributed teams reflects the placement of international nodes.

Ankr’s international approach to DevOps allowed us to alert the system, get back online instantly, and allow it, instead of relying on a specific country or focusing on one region. DApps on BNB Chain will continue to work.

Ankr was one of the fastest responders to this incident, developing, testing and releasing a security update within 30 minutes. Their response shows the commitment validators have to the ecosystem, and Ankr demonstrates a near-perfect crisis response.

final thoughts

As a decentralized system, a blockchain network relies on available validators. As the popularity of these systems continues to grow and total funds accumulate, they will become even more targeted for abuse. Decentralization is a strength of the system, but it also leads to various potential security issues when information is not shared.

By working with validators, blockchain networks can provide an extra level of system security, oversight, and due diligence. Ankr is a great example of how working with validators can be rich.

From accelerating the ecosystem’s daily transaction speeds to providing a level of support, these are critical to blockchain success. If this incident has taught us anything, it is that blockchain systems need to create international teams to help respond to incidents. Important events can occur at any time. You should be prepared when it happens.

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