The Bitcoin layer 2 and scaling solution, Lightning Network, is vulnerable to a catastrophic vulnerability that could put funds on the network at risk.
Antoine Riard, a Bitcoin engineer, published a report citing a Lightning Network vulnerability known as a “replacement cycling attack.” According to the developer, it could jeopardize the security of assets exchanged on the Bitcoin layer 2 network.
According to Riard, a skilled attack might exploit this weakness while using the transaction-relay jamming method. This type of attack will target the Lightning Network’s critical component known as Hash Time-Locked Contracts (HTLC). It will essentially create network interruption, transaction delays or prevention, and a potential loss of cash.
Despite the fact that the vulnerability has existed since Lightning Network’s inception, no attempts at a security breach have been made. According to Riard, no such “replacement cycling attack” strategy has been reported in the last ten months.
The vulnerability has also been revealed to the Lightning Network team, who have taken the proper mitigation steps by distributing updates across the LN ecosystem.
According to the research, the breadth of the assault may extend to other Bitcoin applications such as peerswap, coinjoins, and others that use the Lightning Network as their foundation.
As a Bitcoin developer, Riard has paused further network development activities, saying that the new class of replacement cycling attacks has put the network in a catastrophic state that can only be repaired at the base-layer.
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