Vulnerabilities in the Lightning Network?

Whenever someone mentions how slow and expensive the Bitcoin network is, the most common argument against Bitcoin is the Lightning Network-“Bitcoin is better!” The Lightning Network is instant and free of charge!”

This is a typical way to divert attention, because it tries to divert our attention to a corrupt, centralized third-party network, and this third-party network is not even connected to Bitcoin at all.

In this article, I will introduce why the BTC Lightning Network is wrong, centralized, and has many security vulnerabilities.

The Lightning Network is centralized.

Satoshi Nakamoto is very aware of the potential risks of transferring to a third-party network, but there is a group of so-called “Bitcoin maximizers” who are destroying Satoshi Nakamoto’s true vision and trying to gain control.

Vulnerabilities in the Lightning Network?

The BTC Lightning Network claims to use a network of micropayment channels to enable the daily transaction size of Bitcoin to reach billions. But what they didn’t tell you is that this only works in their centralized banking center.

In a recently published paper entitled “Lightning Network: The Second Way to Centralization of the Bitcoin Economy” (written by researchers Jian-Hong Lin, Kevin Primicerio, Tiziano Squartini, Christian Decker, and Claudio J. Tessone) , They found many red flags. Through the study of changes in total capacity, the researchers discovered many vulnerabilities in the Lightning Network protocol.

They found that about 10% of nodes control 80% of the funds on the network. This is very dangerous, because if most of the bitcoins are held by only a few nodes, the network is more vulnerable to hackers, because removing these routing nodes will leave huge holes.

Vulnerabilities in the Lightning Network?

“Removing the hub will cause the network to collapse into many components… This indicates that this network may be the target of a so-called splitting attack,” which may result in lightning being split into two.

Vulnerabilities in the Lightning Network?

The Lightning Network cannot operate on a global scale

The capacity of the Bitcoin Lightning Network is defined as the number of Bitcoins that the network can handle at any given time. For this platform to be used by billions of people worldwide, it needs to be expanded to an unrealistically higher level, which is simply impossible.

Vulnerabilities in the Lightning Network?

As of now, the network can only handle about 2,800 bitcoins, which accounts for about 0.0001% of the total bitcoin supply. Since there are billions of dollars worth of Bitcoin transactions every day, this is unrealistic.

Payment channels on the Lightning Network also need to be opened and closed through expensive L1 Bitcoin transactions. The network can process about 2000 transactions per block and generate about 144 transactions per day. This means that it takes about 72 years to open a payment channel for everyone on the planet, assuming that no one dies or has children during this period.

The volatility of Bitcoin makes LN infeasible.

Leaving aside other shortcomings, let’s assume that the Lightning Network is running perfectly. Why would anyone or company choose to use it?

The violent volatility of Bitcoin has discouraged many people, especially those who are interested in using it as a payment method.

The volatility of Bitcoin prices makes it difficult for companies to use Bitcoin as a payment method when pricing products, selling products to customers, or even buying inventory from suppliers.

Let me use an example to better explain this problem: Let us assume that the “WhaleCorp” company must pay invoices to its bitcoin suppliers. Generally speaking, the supplier will give the customer the payment time, such as 30 days. If the price of Bitcoin increased by 10% within 30 days, WhaleCorp would have to take another 10% worth of fiat currency or other cryptocurrencies to convert into Bitcoin and pay the supplier an invoice.

This kind of transaction risk exists because corporate customers may pay in fiat currency instead of Bitcoin. There is also exchange risk in consumer transactions, because most individuals’ wages are not paid in Bitcoin, resulting in the conversion of transactions from legal tender to Bitcoin.

The Lightning Network claims to charge no fees. If their network is not fully centralized, it would be surprising if Bitcoin is not one of the most volatile assets on the planet.

Use of the El Salvador Lightning Network

El Salvador became the first country in the world to adopt Bitcoin as legal tender some time ago.

This move, which was welcomed by most people in the Bitcoin community, turned out to be nothing more than a seizure of unprecedented control by the Salvadoran government.

Vulnerabilities in the Lightning Network?

When El Salvador’s President Nayib Bukele expressed his support for Bitcoin at the 2021 Miami Bitcoin Conference, people were thrilled.

What he didn’t mention is that people will be forced to use Chivo, a fully centralized LN wallet. In a recent tweet, Booker said “Chivo is not a bank” and he was right. Chivo is 1,000 times more centralized than any bank in the world.

The Salvadoran government now has full direct control of all funds and can open or close their wallets at any time. We witnessed this with our own eyes, and when they launched, they quickly closed due to “technical difficulties”.

We also received dozens of reports on social media that their transactions did not go through the Lightning Network. Why? Because LN is only applicable to small transactions of US$1-5 and cannot exceed US$400.

A centralized network that restricts people from spending only $400? Maybe I missed something, but how can this be considered an upgrade of the bank?

Vulnerabilities in the Lightning Network

Independent Lightning Network developer Joost Jager has expressed many concerns about the network in the past few years. He claimed that although many of the features they built are great, it does pose some serious threats.

Vulnerabilities in the Lightning Network?

Lightning Network Vulnerability #1: Grief Attack

Jager’s post details the so-called “grief” attacks that may have occurred since the inception of Lightning, and affected the normal and newly launched wumbo channels.

Lightning Channel uses an encryption function called Hash Time Locked Contract (HTLC) to execute payments on the network. The lightning channel can only accommodate a few hundred HTLCs. Once the upper limit is reached, the channel will no longer be able to process payments-funds will be stuck and the channel must be closed.

Sadness can be confusing: considering that almost no one actually uses the Lightning Network, this hasn’t been a big problem so far. But it may be…

It will allow attackers to freeze any bitcoins stored in the lightning channel by sending micropayment spam emails. Although they cannot steal Bitcoin, it may disrupt other people’s transactions.

Lightning network vulnerability #2: time dilation solar eclipse

If the attacker spins up hundreds of nodes and aggregates the connections of all lightning nodes in a way that prevents the victim from connecting with any honest users, the attacker can isolate the node so that it cannot receive real network data .

As the connections of nodes “overlap”, attackers can provide node transaction data at a slower rate than normal. Once the attacker closes the lightning channel with the victim, he or she can steal funds from the channel, because the host node will not see the closed transaction of the channel on the blockchain because the blockchain is not fast enough to receive data quick.

The attack was serious and the victim may lose money. In other words, the attack does require malicious actors to operate and coordinate hundreds of nodes to successfully cover up the victim.

Lightning network vulnerability #3: fixed

Another type of attack that requires inconsistent transaction data is called a “fixed attack.”

To exploit this vulnerability, sophisticated attackers prevent channel closing transactions by broadcasting conflicting transactions to separate nodes with different memory pools. (There is no unified pool of pending transactions on the Bitcoin network; some nodes receive transactions, while others are not based on the distribution of peer-to-peer network connections, so each memory pool is different).

Using a variety of techniques, one of which includes setting a low enough fee for closing the transaction to ensure that the transaction will not be confirmed before the channel’s time lock expires. The attacker can trick the victim into closing his or her incorrectly. Channel, thereby stealing a single transaction.

in conclusion

The Bitcoin Lightning Network is more than just a failure. This is a deception trap that runs counter to everything that Satoshi Nakamoto has established with the Bitcoin network.

It is usually promoted by hardcore Bitcoin extremists, who either have never read the white paper, have no knowledge of how LN works, or deliberately try to lure new users into a wrong, centralized situation. .

With the recent addition of a Tip Jar news on the Bitcoin Lightning Network on Twitter, people should know the truth about this system. I believe this system will face many failures in the future.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/vulnerabilities-in-the-lightning-network/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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