4 min read

Is the Bitcoin Lightning Network Safe After Security Issue Discovered?

Published October 23, 2023 10:27 AM

By Teuta Franjkovic

Edited by Giuseppe Ciccomascolo

Network vulnerabilities are the entry point threat actors use to gain access to your internal network | Credit: Shutterstock

Key Takeaways

Developer Antoine Riard identified a vulnerability in the Bitcoin Lightning Network.
The “replacement cycling attacks” flaw, theoretically affecting a key component called HTLC, poses a risk to fund security.
No verified real-world attacks have been linked to this vulnerability for the past 10 months.
Mitigation steps are taken with patches deployed in major Lightning Network implementations.

Network vulnerabilities present a number of threats to your company since they are the point of entry that threat actors utilize to access your internal network.

The Bitcoin Lightning Network, a second-layer solution designed to speed up transaction times on the Bitcoin blockchain, has discovered a significant vulnerability in its system. A developer found the issue and he has now taken a decision on his future in the company.

‘Replacement Cycling Attacks’ Could Disrupt Transactions

Antoine Riard, a Bitcoin developer, disclosed the problem and provided specifics in a study released last week.

The “replacement cycling attacks” vulnerability has the potential to put the safety of money moving across the Lightning Network in danger.

Q: Is Lightning Network fatally flawed and doomed to destruction?

A: There's no need to debate technical nuances with fearmongers. If folks are so sure about the severity of a weakness, they're free to exploit it! Go on, enrich yourselves, my node is waiting!

— Jameson Lopp (@lopp) October 22, 2023

Theoretically, it might enable knowledgeable attackers to launch a “transaction-relay jamming attack” and target a crucial Hash Time Locked Contracts (HTLC) element of the Lightning Network. Such an attack’s goal would be to obstruct regular transaction flow, creating delays or blocking expected transaction processing. This could increase the risk of losing money in the network’s channels.

The Lightning Network Is Still Safe

While the issue is concerning, there haven’t been any real-world attacks resulting from it. Based on observational data, Riard claimed that there is no proof of such operations over the previous 10 months. The report stated that neither replacement cycling attacks nor real-world experiments on the bitcoin mainnet have been seen or reported in the wild in the recent 10 months.

Antoine Riard said the network is vulnerable to replacement cycling attacks, which could permit malicious actors to siphon funds from mempools. https://t.co/uWsK7kugNx

— Laura Shin (@laurashin) October 23, 2023

The developer discovered the vulnerability in the Lightning Network and have since taken action, including deploying updates across key implementations like Eclair, LND, and C-Lightning. He did have some concerns, though, regarding how well these mitigations might work against more sophisticated attacks.

This vulnerability may have effects outside of the Lightning Network. According to Riard’s study, the weakness might also affect a number of other Bitcoin protocols and applications, including batch payouts, peerswap , and coinjoins.

Pro-XRP Attorney Interrogates Lightning Network in Bitcoin

The developer who discovered the flaw, Riard, concurrently issued a note announcing his decision to stop working on Lightning.

As of right away, Riard wrote: “I’m ceasing my engagement in the development of the lightning network and its implementations, including coordinating the resolution of security vulnerabilities at the protocol level.

In the meantime, John Deaton, a well-known supporter of XRP, criticised the Bitcoin Lightning Network while disparaging another protocol on the XRP Ledger.

Let me be clear and transparent: I am now involved in @Spend_The_Bits as an angel investor and serve as its Chief Legal Officer. Therefore, please accept my comments with that in mind. But a major reason I invested in @Spend_The_Bits , or stated more accurately, invested in… https://t.co/aheyTxjGxp

— John E Deaton (@JohnEDeaton1) October 21, 2023

According to Deaton, the SpendTheBits protocol for XRP is a better choice than the Lightning Network. His position as Chief Legal Officer and an angel investor for SpendTheBits, however, might have an impact on his viewpoint.

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About the Author

Teuta Franjkovic

Teuta is a seasoned writer and editor with more than 15 years of experience. She has expertise in covering macroeconomics and technology as well as the cryptocurrency and blockchain industries. She has worked for several publications as a journalist and editor, including Forbes, Bloomberg, CoinTelegraph, Coin Rivet, CoinSpeaker, VRWorld and Arcane Bear. Teuta began her professional career in 2005, working as a lifestyle writer at Cosmopolitan in Croatia. From there, she branched out to several other publications, covering mainly business and the economy. She then turned her attention to the world of cryptocurrency and blockchain, believing that crypto is among the most important inventions in the history of humanity. Her involvement in fintech began in 2014 and she has since lent her expertise in writing, editing and gathering information about the world of crypto, blockchain, NFTs and Web3. An all-round news hound, mentor, editor, and writer, Teuta enjoys teamwork and good communication. She holds a WSET2 diploma and has a thing for chablis, punkrock music and shoes. She also holds a double MA in Political science and Entrepreneurship.

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