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Biryukov, A., Naumenko, G., & Tikhomirov, S. 2022, May 2–6, Analysis and Probing of Parallel Channels in the Lightning Network. Unpublished paper presented at Financial Cryptography and Data Security 2022. 
Added by: Rucknium (05/05/2022, 20:25)   Last edited by: Rucknium (05/05/2022, 20:31)
Resource type: Conference Paper
BibTeX citation key: Biryukov2022
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Categories: Not Monero-focused
Keywords: Payment Channels
Creators: Biryukov, Naumenko, Tikhomirov
Collection: Financial Cryptography and Data Security 2022
Views: 91/30984
Attachments   132.pdf [23/2237] URLs   https://fc22.ifca. ... roceedings/132.pdf
Abstract
Bitcoin can process only a few transactions per second, which
is insufficient for a global payment network. The Lightning Network (LN)
aims to address this challenge. The LN allows for low-latency bitcoin
transfers through a network of payment channels. In contrast to regu-
lar Bitcoin transactions, payments in the LN are not globally broadcast.
Thus it may improve not only Bitcoin’s scalability but also privacy. How-
ever, the probing attack allows an adversary to discover channel balances,
threatening users’ privacy. Prior work on probing did not account for
the possibility of multiple (parallel) channels between two nodes. Naive
probing algorithms yield false results for parallel channels.
In this work, we develop a new probing model that accurately accounts
for parallel channels. We describe jamming-enhanced probing that allows
for full balance information extraction in multi-channel hops, which was
impossible with earlier probing methods. We quantify the attacker’s in-
formation gain and propose an optimized algorithm for choosing probe
amounts for multi-channel hops. We demonstrate its efficiency based on
real-world data using our own probing-focused LN simulator. Finally,
we discuss countermeasures such as new forwarding strategies, intra-hop
payment split, rebalancing, and unannounced channels.
  
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