Mitigations for loop attacks



Summary:

In a discussion thread, Jim Posen expresses concerns about the complexity and communication overhead of a proposal to penalize parties for delaying HTLCs beyond a certain threshold. He argues that a reputation system would be a better option since it gives more discretion to the preceding hop. However, another participant points out that a reputation system misaligns user and node incentives and creates risks of centralizing the network. Even if a node is not at fault, it can still lose reputation by routing crap through it. In response to this, Jim Posen suggests keeping a reputation score for each node, which they earn over time, to keep all links in the network high quality and quickly disconnect from delaying nodes if the incentives are right. However, another participant raises concerns about deanonymizing the network and creating new vectors of attack. The discussion concludes with the need for a real design of the reputation system and a careful evaluation of whether it creates significant disincentives to neighborliness.


Updated on: 2023-05-25T00:42:55.000402+00:00