On September 18, a radiator posted on the R / Bitcoin forum and explained how he had discovered the “way to attack” [the] Lightning network custody service. The Reddit account called “Reckless Satoshi” wanted to find out if “the difference between the actual routing fee and the service transaction fee could be exploited for profit.” The researcher revealed that he wanted to see how big the damage could be and said “it’s bad.”
6 Lightning Network Custody Service Attacked, Researchers Reveal Results to Criminals Before Revealing
A Redditter named Reckless Satoshi published a publication post on R / Bitcoin last Saturday and revealed how he found a weakness between routing fees and the custodial services of the Lightning network. The research attack was carried out in good faith and after it was completed he revealed bugs in the offensive services before releasing his results. The reckless Satoshi used Lightning Network (LN) attacks on six different services, including Bitfinex, Moon, Okex, LNmarkets, SouthExchange and WalletFatsatoshi.
The reckless Satoshi said the attack was “cheap, but not free” and “general attack”. After depositing funds in the custody services, the reckless Satoshi “used a node that would direct payments between the custodial service and the receiving node.”
“If a positive net return is possible, it’s a matter of looking at how much damage can be done to optimize the collected fee size and transaction speed rate,” added the reckless Satoshi. “It’s easy to see how this attack will be possible in any service [a] Free withdrawal fee. “
The reckless Satoshi also published his attack on the code repository site Github. After explaining how he placed a node in the middle, the researchers added:
This is a simple attack. In fact, I can only think of an LN attack, but I am a newcomer to the learning process. I assume there are a lot more people for this research. Who knows, maybe there has been a lot of damage in the past that remains unpublished.
The total value of the Lightning network is locked at 112 million, up 100% from the end of July
Visitors who read the reckless Satoshi’s forum thread thanked him for conducting the research and exposing the bugs to specific custodian LN providers. “I’m glad to see that people are not hacking / exploiting the system just for malicious purposes or to make quick profits from it,” one person wrote in response to the release. Moreover, several Redditrs discussing the results of Redless Satoshi argued over what should be called their attack.
At the time of writing, Lightning Network has seen its Total Price Lock (TVL) slide 9.3% in the last 24 hours. However, since July 20, 2021, LN TVL has grown to% 112 million on today’s (2,600+ BTC) $ 112 million TVL Lightning Network, surpassing 56 56 million that day. Most of the 9.3% TVL slides in LN are due to the recent crypto market rate on Monday morning, September 20, as the value of the crypto economy has declined by 9% in the last 24 hours.
What do you think of the Lightning Network attack described by Redditter reckless Satoshi? Let us know what you think about this in the comments section below.
Image credit: Shutterstock, Pixabay, WikiCommons, defipulse.com
Denial: This article is for informational purposes only. It is not a direct offer or request for a purchase or sale offer, nor is it a recommendation or approval of a product, service or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The Company or the Author is not directly or indirectly responsible for any loss or damage caused by or in connection with the use or reliance on any content, product or service referred to in this article.