I don't think LN-penalty is the main problem here, as the most powerful form of the attack starts by filling channels with as many expiring HTLCs as possible, which is a problem for any channel design. The only solutions I'm aware of are (1) temporary dynamic block size increases, which only increase the cost of the attack by a small multiple, (2) some form of time stop, although that increases the risk of capital losses from the time value of money, and (3) various bond designs, although they upfront accept losses to the time value of money.
Of those options, I think bonds may be under explored but I also think that the main downsides of time stop may be almost entirely mitigated by John Law's hierarchical channel factories design, which would involve channels being opened by three parties, with two preferred partners being able to continue exchanging funds in the channel even if the third counterparty initiated a force close that was taking forever due to a time stop.
David A. Harding
npub1sy…46ksu
2024-04-30 06:36:29
in reply to nevent1q…pld2
Author Public Key
npub1syluunzwwmc70d85d9alzqc2jrc6pdur7xrax2vqpfxas6tljavsa46ksuPublished at
2024-04-30 06:36:29Event JSON
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"content": "I don't think LN-penalty is the main problem here, as the most powerful form of the attack starts by filling channels with as many expiring HTLCs as possible, which is a problem for any channel design. The only solutions I'm aware of are (1) temporary dynamic block size increases, which only increase the cost of the attack by a small multiple, (2) some form of time stop, although that increases the risk of capital losses from the time value of money, and (3) various bond designs, although they upfront accept losses to the time value of money.\n\nOf those options, I think bonds may be under explored but I also think that the main downsides of time stop may be almost entirely mitigated by John Law's hierarchical channel factories design, which would involve channels being opened by three parties, with two preferred partners being able to continue exchanging funds in the channel even if the third counterparty initiated a force close that was taking forever due to a time stop.",
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