delvingbitcoin

A Fast, Scalable Protocol For Resolving Lightning Payments

A Fast, Scalable Protocol For Resolving Lightning Payments

Original Postby harding

Posted on: November 10, 2024 18:03 UTC

The described scenario involves a sophisticated attack on the Onion Payment Routing (OPR) system used in cryptocurrency transactions, specifically focusing on an intermediary node's vulnerability to Denial of Service (DoS) attacks.

The example provided illustrates how Alice aims to transfer funds to Carol through Bob using OPR, setting conditions for the transfer that include a time limit for delivering a cryptographic proof, known as a preimage. However, Bob becomes a victim of a ping flood DoS attack, causing him to lose communication temporarily. This disruption leads Bob to unintentionally pay out without receiving compensation due to the timing conditions not being met, resulting in a financial loss equivalent to 10,000 satoshis (sats).

Further expanding on this, the attack can be executed across longer transaction routes involving multiple nodes, where any node experiencing communication failure due to natural issues or targeted attacks would end up financially penalized. The attackers, potentially operating both the sending and receiving ends of the transaction, profit from orchestrating these failures. This strategy does not necessarily require the attacker to directly perform DoS attacks but can exploit occasional connectivity losses, enhancing the attack's feasibility and profitability.

The inherent risk of such attacks underscores the need for OPR nodes to enhance their defenses against IP-layer attacks to maintain payment reliability. However, the increased costs associated with improving network robustness may have unintended consequences, such as encouraging the centralization of forwarding nodes. This centralization could arise from the financial burden of deploying more sophisticated defenses, leading to a landscape where only well-funded operators can afford to run nodes, thereby reducing the decentralization that is a core principle of cryptocurrency networks.