A examine printed on June 29 revealed a method to drain Bitcoin (BTC) wallets’ funds on the Lightning Network by exploiting a bottleneck within the system.
According to the “Flood & Loot: A Systemic Attack On The Lightning Network” paper, Jona Harris and Aviv Zohar from the Hebrew University in Israel evaluated a systemic assault on the Lightning Network that enables for the theft of BTC funds that had been locked in cost channels.
Flooding the blockchain with simultaneous assaults
The Lighting Network is used to ship funds by means of middleman nodes, which could be leveraged to steal Bitcoin. This often should be accomplished shortly. However, the efficient window of time may very well be prolonged by hackers flooding the community.
For the assault to achieve success, hackers would solely must assault 85 channels concurrently as a way to steal funds from the community.
Details behind the assault
Researchers offered extra particulars, noting:
“The key idea behind Hash Time Locked Contracts (HTLC) is that after they are established, payments are ‘pulled’ by the target node from the previous node in the path by providing a secret (a preimage of a hash). Our attacker will route a payment between his own two nodes, and pull the payment at the end of the path. He will refuse to cooperate when the payment is eventually pulled from the source node – forcing the victim to do so via a blockchain transaction.”
The paper clarifies that the outcomes of the examine had been shared with the builders of the three primary Lightning implementations previous to publishing the report.
Cointelegraph reported that the Vietnamese on-line ticketing company, Future.Travel, now accepts Bitcoin funds through the Lightning Network. Funds are transformed into native foreign money on the time of sale.