It bitcoin (BTC) Lightning Network has been by far the largest for a long time Layer-2 scaling solution for the Bitcoin network. It ensures that transactions on the Bitcoin blockchain can be done faster and cheaper. However, researchers at the University of Illinois have uncovered a major vulnerability in the Lightning Network.
Lightning Network seems vulnerable
Two researchers at this American university, Cosimo Sguanci and Anastasios Sidiropoulos, published a few days ago a research paper in which they state that the Lightning Network currently has a major weakness. There is a chance that many millions of dollars will be stolen, according to the researchers.
In the paper, the researchers explain in detail how the vulnerability could be exploited. This can happen in the event that several tens nodes join hands to create a so-called zombie attack to be carried out. At that point, the nodes they control become inactive and the funds are locked up here.
They could then withdraw the funds into their nodes themselves. According to the research, a coalition of 30 nodes could loot about 750 bitcoins with a market value of $17 million.
The researchers also described another method of attack on the Lightning Network of Bitcoin: a coordinated double spend attack
This attack would also require collusion between a few dozen large nodes. This attack attempts to overload the base-layer Bitcoin blockchain by submitting a tidal wave of fraudulent transactions across numerous Lightning Network channels. If the attackers paid high fees and jumped ahead of the queue, they could spend bitcoin twice.
A shocking conclusion
The researchers believe that both Lightning Network vulnerabilities still exist at this time. In terms of priority, a large-scale double-spend attack is probably more profitable for malicious parties than a zombie attack.
The research paper warns that the severity of a massive double-spend attack will grow as the Lightning Network expands. Victims would lose more money, channels would experience longer delays and the protocol’s reputation would be at risk.
