Broken Factory Attack



Summary:

The Discrete Log Contracts mechanism has a feature that enforces the Oracle to reveal its private key if it publishes multiple signatures signing different messages for a specific sampling. This method guarantees that a public key is used only once. ZmnSCPxj suggests using this mechanism so that if Alice and Bob sign an alternate transaction spending the A,B output, they also reveal to Carol the private key. Carol can punish this behavior by burning the A,B output and sending it all as fees to miners.However, this solution may not be enough in cases where the A,B channel has low capacity. In such circumstances, Alice and Bob could be willing to sacrifice it to steal larger amounts from Carol.


Updated on: 2023-06-02T18:22:28.394195+00:00