Strategic Analysis of Griefing Attack in Lightning Network

Mazumdar, Subhra; Banerjee, Prabal; Sinha, Abhinandan; Ruj, Sushmita; Roy, Bappaditya

doi:10.1109/tnsm.2022.3230768

Cited by 5 publications

(4 citation statements)

References 25 publications

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“…Ref. [47] introduce a game-theoretic model for analyzing griefing attacks in HTLCs, proposing HTLC-GPZ, an improved countermeasure that offers better protection and reduces the number of coins locked in the network. Ref.…”

Section: Security and Privacymentioning

confidence: 99%

A Review of the Lightning Network’s Evolution: Unraveling Its Present State and the Emergence of Disruptive Digital Business Models

Dasaklis,

Malamas

2023

JTAER

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The Lightning Network (LN), a second-layer protocol built on top of the Bitcoin blockchain, is an innovative digital payment solution that offers increased convenience, speed, and cost-effectiveness to consumers and businesses alike. However, there is limited literature available on the characteristics of this nascent technology, the depth and breadth of the various business LN-related applications as well as relevant adoption/implementation challenges. This study aims to contribute to the understanding of the LN’s characteristics, its potential in enhancing business operations and its applicability across different sectors, while taking into account adoption and implementation challenges. We apply a narrative review methodology using a semi-systematic approach to examine new and emerging business models empowered by the LN and its characteristics, topology, performance, privacy and security. We analyze the data to identify key themes and trends in the literature, offering a critical analysis of the strengths and weaknesses of the existing literature. Based on the findings, we provide several clusters of fruitful areas for future research directions. This study not only provides crucial insights for businesses contemplating the adoption of LN to improve their operations and customer experience, but it also represents a substantial academic contribution, offering valuable knowledge and fostering further research in the fields of blockchain technology, FinTech and cryptocurrencies.

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Section: Security and Privacymentioning

confidence: 99%

A Review of the Lightning Network’s Evolution: Unraveling Its Present State and the Emergence of Disruptive Digital Business Models

Dasaklis,

Malamas

2023

JTAER

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“…He notes in particular that griefs with griefing factors at least equal to one must exist in settings where there is "speaker-listener equivalence" (Buterin, 2017), and in Buterin (2018a), he considers the impact of a specific grief on economic equilibria of supply and demand for validators in a simplified model of a proof-of-stake system. Griefing factors have subsequently been used to analyze the effectiveness of specific attack strategies in various other blockchain systems, notably attacks on payment channels (Mazumdar et al, 2020;Mazumdar et al, 2022).…”

Section: Related Workmentioning

confidence: 99%

“…Thus, the griefing factor of such a delay attack scales with the length of the path used, and large attacks can stress the liquidity of the network. Such attacks are analyzed in Mazumdar et al (2020Mazumdar et al ( , 2022 and mitigation approaches are considered in which participants place collateral that can be taken from griefers and used to compensate victims of such delay griefs. Similar delay griefs can also be possible in state channels (Coleman et al, 2018), which generalize this idea to applications beyond payments.…”

Section: Examples Of Griefs On Cryptoeconomic Systemsmentioning

confidence: 99%

An analysis of griefs and griefing factors

George¹

2023

Front. Blockchain

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We consider griefing factors, a system for measurement of the cost-effectiveness of sabotage, which have been used to analyze the attack resistance of blockchain systems. Attackers are said to “grief” if they accept economic harm to themselves in order to harm others; the griefing factor is the ratio of the harm done to the victim to the harm taken on by the attacker. In this work, we study the mathematical properties of this notion, particularly focusing on how the presence of players willing to engage in griefs at varying griefing factors impacts the equilibria present in games.

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“…Integrating blockchain and LN technology with the Internet of Things (IoT) for instant payment applications is another research focus [31][32][33][34][35][36][37]. Furthermore, a solution based on a game-theoretic model to analyze griefing attacks in Hash Time-Locked Contracts (HTLCs) called HTLC-GPZ was presnted to provides improved protection against such attacks [38].…”

Section: Introductionmentioning

confidence: 99%

An Invitation Model Protocol (IMP) for the Bitcoin Asymmetric Lightning Network

Abdullah

Mutawa

2023

Symmetry

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The Lightning Network (LN), a second-layer protocol built atop Bitcoin, promises swift, low-cost transactions, thereby addressing blockchain scalability and enhancing user privacy. As the global financial technology landscape evolves, the LN’s importance in the future of fintech and the Fourth Industrial Revolution (4IR) becomes increasingly pivotal. The anticipated rise of blockchain-based payments and smart contracts in businesses demands a more agile and secure payment system. However, the LN’s early stage raises valid concerns about security and reliability, especially when implemented on a huge asymmetric network such as the Internet, potentially hindering its broader adoption. Malicious nodes could intentionally cause payment failures or initiate attacks, such as DDoS attacks, by overwhelming other nodes in the network with channel-opening requests. As a result, users will be discouraged from using the LN; hence, the technology will become obsolete as individuals will not waste the time and power investment required for using this technology. Addressing these issues, this paper proposes an innovative invitation model protocol (IMP) to reinforce the LN’s security and reliability. The IMP creates an exclusive ‘Club’ within the LN, admitting only nodes verified as honest, thereby bolstering network security and reliability. The protocol empowers Club Founders to expel members exhibiting malicious activities, thereby preserving the invested time, energy, and funds of the network’s users. The IMP was rigorously tested using Amazon Web Services Virtual Machines within the Bitcoin and Lightning Network’s Testnet environment, which is a highly asymmetric network. The results demonstrated the protocol’s efficacy in fulfilling its objectives, marking a significant step towards a safer and more efficient blockchain transaction network. As the blockchain continues to revolutionize the financial sector, implementing robust security measures such as the IMP becomes essential. This research paper introduces a novel approach to enhancing the reliability and security of a Lightning Network (LN), and thus distinguishes itself from the existing literature, by introducing an additional step before establishing or joining such a network. The research underscores the critical role of such protocols in realizing the potential of the LN in powering the next wave of fintech and industrial innovation.

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Strategic Analysis of Griefing Attack in Lightning Network

Cited by 5 publications

References 25 publications

A Review of the Lightning Network’s Evolution: Unraveling Its Present State and the Emergence of Disruptive Digital Business Models

A Review of the Lightning Network’s Evolution: Unraveling Its Present State and the Emergence of Disruptive Digital Business Models

An analysis of griefs and griefing factors

An Invitation Model Protocol (IMP) for the Bitcoin Asymmetric Lightning Network

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