Author: Subhra Mazumdar 2019-11-14 17:07:57
Published on: 2019-11-14T17:07:57+00:00
In this post, Subhra Mazumdar raises a question about the security of payment channel networks in the case of malicious parties. He considers a scenario where two parties (B and C) are controlled by the same adversary and have opened a channel of 1 BTC. However, if they receive three transaction requests with a value of 0.4 BTC each, they would only have a capacity of 0.2 BTC after the first two transactions. In this situation, if B and C report an incorrect residual balance, they could accept the third transaction, violating the channel's capacity. The concern is that without anyone keeping track of the residual value, there would be no way to detect this violation. Subhra wonders if parties might use this strategy to open low-value channels but still accept multiple transactions exceeding the channel capacity.
Updated on: 2023-06-02T21:51:44.970134+00:00