Exploiting Centrality: Attacks in Payment Channel Networks with Local Routing
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Payment channel networks (PCN) enable scalable blockchain transactions without fundamentally changing the underlying distributed ledger algorithm. However, routing a payment via multiple channels in a PCN requires locking collateral for potentially long periods of time. Adversaries can abuse this mechanism to conduct denial-of-service attacks. Previous work on denial-of-service attacks focused on source routing, which is unlikely to remain a viable routing approach as these networks grow. In this work we examine the effectiveness of attacks in PCNs that use routing algorithms based on local knowledge, where compromised intermediate nodes delay or drop transactions to create denial-of-service. We focus on SpeedyMurmurs as a representative of such protocols. Our attack simulations show that SpeedyMurmurs is resilient to attacks by randomly selected intermediate nodes because it dynamically adjusts using local knowledge. We further consider attackers that control a significant fractions of paths and we show that this ability to route around problematic regions becomes insufficient for such attackers. We propose methods to incentivize payment channel networks with less central nodes and more diverse paths and show through simulation that these methods effectively mitigate the identified denial-of-service attacks.
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