In line with the “Flood & Loot: A Systemic Attack On The Lightning Network” paper, Jona Harris and Aviv Zohar from the Hebrew University in Israel evaluated a systemic attack on the Lightning Network that permits for the theft of BTC funds that were locked in payment channels.
Flooding The Whole Network
The Lighting Network is employed to transfer payments via intermediary nodes, which may be leveraged to steal Bitcoin. This usually must be done quickly. However, the effective window of your time might be extended by hackers flooding the network.
For the attack to achieve success , hackers would only got to attack 85 channels simultaneously so as to steal funds from the network.
Adding further, the researcher explained:
“The key idea behind Hash Time Locked Contracts [HTLC] is that after they’re established, payments are ‘pulled’ by the target node from the previous node within the path by offering a secret (a preimage of a hash). Our attacker will route a payment between his own two nodes, and pull the payment at the end of the trail. He will refuse to cooperate when the payment is eventually pulled from the source node – forcing the victim to try so via a blockchain transaction.”
The paper defines that the results of the study were shared with the developers of the 3 main Lightning implementations before publishing the report.