The developer of the Layer 2 protocol for the Bitcoin Lightning Network has reported that the network faces a new type of replacement cycling attack, which could require changes to be made directly to the mainnet’s code to protect against.
Antoine Riard, Bitcoin Developer and Security Expert, has spoken about a new type of hacker attack on the Lightning Network. According to him, the Layer 2 protocol network faces security problems, the solution to which can affect the entire ecosystem of the first cryptocurrency.
Thus, Riard has reported a new type of replacement cycling attacks. Hackers target payment channels whose systems allow Lightning Network users to carry out transactions off-chain, recording only their final results on the Bitcoin blockchain. Attackers exploit inconsistencies between individual mempools to steal funds from participants in such channels.
The developer says that any defenses against this class of attacks introduced at the L2 solution level won’t deliver the desired results. Therefore, to secure Lightning Network users, several changes will have to be made to the mainnet code. In particular, this involves changing the requirements for the operation of nodes, i.e., making changes to the security architecture of the decentralized Bitcoin ecosystem. This approach will be effective against cybercriminals but will require maximum support from the community.
Riard has announced his resignation from the Lightning Network team, he will focus on the development of the Bitcoin core.
Recently, the Lightning Labs team announced an update to the Taproot Assets protocol, which will enable the issuance of Bitcoin-based stablecoins. Analysts have estimated that over the past two years, the Lightning Network’s usage rate has increased by more than 1,200%.
