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Bitcoin Lightning Network Security Vulnerability Disclosure Has Been Released

  • Alex Dovbnya
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    More details emerge about the Lightning Network security vulnerability with users being advised to update their nodes ASAP

Bitcoin Lightning Network Security Vulnerability Disclosure Has Been Released
Cover image via news.u.today
Contents

Blockstream’s Rusty Russel has released the disclosure of a crucial Lightning Network (LN) vulnerability that could lead to a loss of funds.

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It’s high time to upgrade nodes  

LN is a layer-2 protocol that allows creating payment channels between two parties. The information about their transactions is later recorded on the Bitcoin Blockchain.  

Since there is no requirement to verify the funding transaction output, bad actors could spend funds in a channel without notifying the other party. After attempting to close the channel, it will become apparent for the victim that these transactions were invalid.  

Once the funding transaction is seen, peers MUST check that the outpoint as described in `funding_created`[1] is a funding transaction output[2] with the amount described in `open_channel`[3],” the disclosure states.

Those LN users with version 0.7 and below have been advised to update their nodes as soon as possible given that they can be still susceptible to potential attacks.

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Not a suitable solution

During the peak of crypto hype in December 2017, it was obvious that Bitcoin wasn’t able to handle a large number of transactions. The scalability problem gave birth to the off-chain solution, but it failed to live up to the expectation.

Some Twitter users point out that the recently discovered vulnerability is the reason why LN will never see mainstream adoption.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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Ex-Congressman Says Fed Should Not Play With Own Cryptocurrency

  •  Denis Sinyavskiy
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    Former US Congressman Ron Paul shares his thoughts on the possible creation of Fed’s own cryptocurrency

Ex-Congressman Says Fed Should Not Play With Own Cryptocurrency
Cover image via www.123rf.com

Former US Congressman Ron Paul spoke on Fox Business and said that the Fed should not think about creating its own cryptocurrency.

Fed’s Crypto: To Be or Not To Be?

Rumors have been circulating for the past few months about the Fed possibly creating own cryptocurrency. It is expected that a digital coin would become a competitor to its counterparts on the market, and may even replace fiat money. President Patrick Harker, President of the Federal Reserve Bank of Philadelphia, commented on such rumors at a recent conference:

“It is inevitable. I think it is better for us to start getting our hands around it.”

However, there has not been no official follow-up by the Fed towards a crypto exchange. While proponents of this idea believe such innovation is necessary, it is expected that the exchange could stop the current delays involving US bank transfers.

What do the opponents think about the Fed's own cryptocurrency?

The idea of ​​creating the Fed's cryptocurrency has its opponents. This includes Ron Paul, who believes that the Fed is in a better position to stay away from digital coins and allow the private blockchain sector and payment platforms to resolve this discussion in real-time. What the Fed plans to do next is unclear, but the central bank may still enter the game.

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About the author

Starting with a simple interest in cryptocurrency, over the past two years, Denis has worked in a cryptocurrency fund and become an author with an analytical bias. His engineering degree helps with the analysis of the technical part of the cryptocurrency market. As a fan of cryptocurrency, Denis believes that the blockchain technology is the future.

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