Two-Layer Protocol Technology Still the Future of Crypto Despite Bot Attacks

by 99Crypto

In 2021 the technology space has witnessed the growth in the two-layer protocol, especially when it comes to decentralized finance and other no fungible tokens popularly known as NFT. The above two technologies have been quite specific, and a significant factor in the witness is rising in transaction costs on cryptocurrencies running under the Ethereum network. Polygon Network, which was popularly known as MATIC, was one of the few technologies that emerged as one of the top contenders in the two layers Ethereum scaling solution for 2021. Another solution that was quite effective in 2021 regarding two-layer protocol was a Defi or decentralized finance platform is known as Quick Swap also emerged as a top contender in the Uniswap clone's category. The competition in the market, especially in the crypto space, led to the emergence of other platforms such as Arbitrum and Optimism, which led to many traders referring to the polygon network as slow. Data released from the Flipside Crypto show that the polygon network got attacked through one of the most cleverly devised attacks, and a significant amount of ether got turned through a bot arbitrage. The attack took place about four months ago, and 14 ethers turned into 218.5. It gets estimated that the bot attack on Polygon Network took place around May, and by the end of June, the episode on the Polygon Network had reached a whopping 8 million transactions. The Bot attack was able to fill each block with some transactions that can get referred to as meaningless. By the time the bot arbitrage attack happened on the Polygon network, the Ethereum network had supported a maximum of about 1.2 million in a day. The bot arbitrage's attack on the polygon network was suspected to be inflating the cost of transactions on the Ethereum network by about 90 percent. It got achieved by stuffing the Ethereum block with meaningless messages. The spam attack used to pay close to about $1000 per day from the block attacked. The arbitrage bot attack turned two blocks where 30 percent of the transactions under the polygon network came from two contracts determined by the bot. The arbitrage bots usually perform a lot of truncations daily in the many decentralized finance platforms.