We all remember how the Ronin sidechain was hacked and robbed, making people lose millions of dollars. The overall loss was counted at approximately 625M$. The net was restarted on 28th July and this article covers all the information you need to know about Ronin to decide whether the project is worth it.
Why was Ronin created?
Sky Mavis, who were the creators of Axie Infinity P2E game weren’t satisfied with Ethereum net’s throughput, so they decided to make a separate L2 solution, they named Ronin net with the Ronin bridge connecting Ethereum to the custom net. The dedication was absolutely worth it with Ronin net showing a 4x speed increase compared to Ethereum’s initial speed. Moreover, the fees were significantly lower and the players of Axie Infinity were rewarded with tax less operations using Ronin.
Not so everlasting
After the huge success of Axie Infinity, that was topped up with Robin’s introduction making the game even more popular came huge danger, that developers couldn’t catch up with. One of the most massive hacker attacks was executed on Ronin bridge and allowed hackers to steal more than 625M$ worth of Ethereum and USDC. The reason for hackers’ “success” was Sky Mavis’ centralised security system, which consisted of 9 validator nodes with only 5 for operation execution, 4 of those were controlled by Sky Mavis - the lack of centralisation was Mavis’ main mistake.
That caused the $RON governance coin, introduced in early 2022 to crash completely starting from the 2,3$ mark in March 2022 all the way down to 0,2$ in June.
However, after the team announced Ronin’s restart rates started going back to normal and the asset is already showing a 40% price increase according to the 28th June statistics. Still, the experts are satisfied with the project’s tokenomics and don’t think Axie Infinity will bring back its hype and popularity.
Ronin has successfully passed several audits and introduced multiple new solutions such as an automated shut-down block, activated by trespassing the limit of 50M$ daily transactions and is currently increasing the number of validator blocks with promises of achieving a stunning 100 validators and launching a team of “operators”, responsible for adding even more. As well as, all the stolen assets will be refunded back to users.
Ronin has improved its security systems and is currently working on the return of users’ loyalty, so the project might bring back its position, though the chances aren’t that big. We’ll see where that goes.