A Vietnamese-crypto platform that hosts a popular online game announced last week that it is investigating a security breach in its network that resulted in the theft of more than US$600 million in cryptocurrency.
The Ronin Network, a program used by players in the non-fungible token (NFT)-based game Axi Infinity, was infiltrated by hackers who exchanged 170,360 ether (a cryptocurrency similar to bitcoin) with a value of more than $600 million. along with USD 25.5 million was infiltrated. Coinage, a cryptocurrency pegged to the US dollar. (Photo: Marco Werch, Flickr, License)The incident is one of the biggest hacking ever recorded in the video game sector.
The Ronin Network, a program used by players in the non-fungible token (NFT)-based game Axi Infinity, was infiltrated by hackers who exchanged 170,360 ether (a cryptocurrency similar to bitcoin) with a value of more than $600 million. along with USD 25.5 million was infiltrated. Coinage, a cryptocurrency pegged to the US dollar.
An NFT is a digital file, such as a photo or video, that can be traded. Its sales history is recorded and stored on what is called a blockchain. Each NFT is tied to a unique token, which allows an individual to prove that they are the current owner of the file.
Axie Infinity has an in-game economy that runs on NFTs that take the form of digital pets known as Axies, which in totality resemble colorful quadruple blob monsters. Like the popular game Pokémon, players can breed and battle their pets with each other.
Ether is used as currency to buy and sell Axis with other players, with the game’s Vietnamese-based developer Sky Mavis charging a commission on every transaction.
In his press release, Ronin said that the hackers gained access to his players’ ether stores by obtaining five of the nine validator signatures required for the network to recognize the deposits of withdrawal requests.
Now with the means to fool the network into complying with its withdrawal requests, the hackers siphoned off over $600 million in cryptocurrency that was stored by the game’s player base.
As a precaution, Ronin said they have temporarily closed the ‘Ronin Bridge’ to “ensure that no further attack vectors remain open” while the system’s security vulnerabilities are being addressed.
As Axie Infinity is based on a “play-to-earn” (P2E) model, in which players must make an initial financial investment to progress and potentially earn rewards, the game appears to be a form of gambling. If a player fails to raise their blob monster properly or if they invest in one that the other players don’t want, they eventually incur financial losses.
Additionally, since in-game economies in P2E games are largely dependent on attracting new players and maintaining their long-term financial interest, they have drawn comparisons to Ponzi schemes.
Although on the other hand, with a deep understanding of the game’s mechanics and clever investment planning, players can actually benefit from P2E games to the extent that they can sustain themselves financially in real life.
For the time being, although Axie Infinity players are currently unable to make withdrawals from the Ronin network, the game’s economy will almost certainly take a serious hit.
In addition to addressing his security vulnerabilities, Ronin announced that he was “working with various government agencies to ensure criminals are brought to justice.”
And for players whose ether was stolen from them, Sky Mavis said it is “committed to ensuring that all drained funds are recovered or reimbursed.”
Compiled by Metacrunch. Metacrunch is a news complier and aggregator platform which aims to spread awareness and updates on Metaverse, Web 3.0 Technology, Blockchain, Cryptocurrency, NFTs, Airdrops and many more.
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