Author: ZmnSCPxj 2020-07-14 14:42:21
Published on: 2020-07-14T14:42:21+00:00
The email exchange between Mr. Lee and ZmnSCPxj discusses the risks associated with the Lightning Network. ZmnSCPxj explains that moving transactions off the blockchain reduces the risk of economic loss due to delay, which can occur when on-chain transfers take a long time to settle. They refute the possibility of conflicting HTLCs and explain the risk of denial of service attacks. Flood and Loot is a similar attack technique where uneconomically small HTLCs are used to forward circular routes to the victim forwarding node, but it is too expensive to claim them on-chain. ZmnSCPxj acknowledges that Lightning Network is susceptible to such attacks, but anchor commitments are being developed to mitigate their effects on-chain fees. Channel factories do not eliminate concerns about security costs as security always comes at a cost. Ultimately, one has to pay for protection in transactions with potentially untrusted entities.
Updated on: 2023-06-14T02:58:45.199827+00:00