Lightning Labs has reportedly confirmed the existence and exploitation of Bitcoin Lightning Network vulnerability.
The peer-to-peer payment network is responsible for providing low-priced and quick Bitcoin payments, but due to this bug incident, it might not be prepared for huge payments.
A well-known Blockstream developer Rusty Russell in August exposed the bug on the mailing list. Russell revealed the bug’s details partially, stating that some security issues have been found in several lightning projects and these issues might lead to loss of money.
What is the Bitcoin Lightning Network vulnerability?
The complete specifications of vulnerability are likely to be released by the end of this month, giving the users almost four weeks for up-gradation to a secure version of the software.
However, this precaution is quite late. Lightning Labs also warned its users that Lightning Network is still in its initial stages.
Please upgrade to the latest versions, as they are not at risk. These are:
• lnd 0.7.1
• c-lightning 0.7.1
• eclair 0.3.1
— Lightning Labs (@lightning) September 10, 2019
Who is at risk of Bitcoin Lightning Network vulnerability?
Although, not all users are at risk as the bug only affects node software and not the wallets. However, some of the funds have been compromised. The Lightning Network claims to have some preventative steps but those measures are not clear.
Along with that, the exact amount is also not clear. Currently, the capacity of Lightning Network is eight hundred and thirty Bitcoin (30BTC) that amount to almost eight and a half million dollars ($8.5m).
It is unlikely that this latest incident will lead to mistrust on Lightning Network beside the non-believers already existed.
Regardless of this incident, previous reports suggest that the channel counts and the network capacity of Lightning Network had been dropping. But when it comes to Bitcoin micropayments, it is still the only one in town.