[FULL DISCLOSURE]: Replacement Cycling Attacks on Attacks on Bitcoin Miners Block Templates

Posted by Antoine Riard

Jan 27, 2025/23:01 UTC

The email discusses a specific security vulnerability within transaction flows that incorporate a fee bump, highlighting an attack strategy referred to as "Transaction Traffic Hijack." This issue is detailed in section 6.4 of an attached paper, which outlines how attackers can manipulate transaction flows. Although the document does not provide a quantitative analysis regarding the average percentage of transactions affected by this vulnerability, it raises concerns about its potential impact on the network.

Additionally, the message touches upon the possibility of UTXO-sharing flows being susceptible to similar attacks. In such scenarios, attackers could strategically propagate their transactions first, thereby preventing others from doing so, before eventually removing their own transactions from the pool. Despite the mention of this tactic, it is noted that no empirical tests or theoretical considerations have been conducted to assess the feasibility or consequences of this approach, particularly concerning the "block-first-at-the-UTXO-root" strategy.

The primary focus and concern remain on the implications of fee bumping within transaction flows, suggesting a need for further investigation and discussion within the Bitcoin development community.

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