Posted by Matt Morehouse
Oct 20, 2023/18:35 UTC
The email discusses a proposal to prevent replacement cycling attacks in HTLC spends by applying the concept of a presigned fee multiplier. The idea is to modify HTLC scripts so that both parties can only spend the HTLC via presigned second-stage transactions, which are always signed with SIGHASH_ALL. By doing this, the attacker will be unable to add inputs to their presigned transaction, effectively preventing a replacement cycling attack from occurring. However, implementing this approach would require more bookkeeping and result in less fee granularity when claiming HTLCs on chain.
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