An empirical analysis of privacy in the lightning network

DOI10.1007/978-3-662-64322-8_8zbMATH Open1492.91452arXiv2003.12470OpenAlexW3206501640MaRDI QIDQ2145379FDOQ2145379

Authors: Yanyan Li 

Publication date: 17 June 2022

Abstract: Payment channel networks, and the Lightning Network in particular, seem to offer a solution to the lack of scalability and privacy offered by Bitcoin and other blockchain-based cryptocurrencies. Previous research has focused on the scalability, availability, and crypto-economics of the Lightning Network, but relatively little attention has been paid to exploring the level of privacy it achieves in practice. This paper presents a thorough analysis of the privacy offered by the Lightning Network, by presenting several attacks that exploit publicly available information about the network in order to learn information that is designed to be kept secret, such as how many coins a node has available or who the sender and recipient are in a payment routed through the network.

Full work available at URL: https://arxiv.org/abs/2003.12470

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Mathematics Subject Classification ID

Cryptography (94A60) Actuarial science and mathematical finance (91G99)

Cites Work

• An algorithm for finding shortest routes from all source nodes to a given destination in general networks
• LockDown: balance availability attack against lightning network channels
• Topological Analysis of Bitcoin’s Lightning Network

Cited In (14)

• Evaluating cryptonote-style blockchains
• Epoch: enabling path concealing payment channel hubs with optimal path encryption
• How to profit from payments channels
• Ride the lightning: the game theory of payment channels
• \textsc{Hide} \& \textsc{Seek}: privacy-preserving rebalancing on payment channel networks
• Analysis and probing of parallel channels in the lightning network
• Cross-layer deanonymization methods in the lightning protocol
• Everything you ever wanted to know about bitcoin mixers (but were afraid to ask)
• The complex shape of anonymity in cryptocurrencies: case studies from a systematic approach
• Congestion attacks in payment channel networks
• LockDown: balance availability attack against lightning network channels
• Decentralized privacy-preserving netting protocol on blockchain for payment systems
• Chameleon hash time-lock contract for privacy preserving payment channel networks
• Enabling scalable and unlinkable payment channel hubs with oblivious puzzle transfer

Uses Software

• GitHub
• CLoTH

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