Lightning Network developer Rusty Russell has advised Lightning Network operators to upgrade as soon as possible.
Australian software programmer and open-source advocate Rusty Russell, who authored the majority of the BitcoinLightning Network’s (LN) protocol specification, has warned against vulnerabilities in the Lightning Network protocol that would cause users to lose money.
The vulnerability may be related to Eclair, a Lightning Network-equipped Bitcoin wallet, which Russell advised users to update.
Russell also told users to update their Lightning Network nodes as soon as possible: "security issues have been found in various lightning projects which could cause loss of funds," he wrote in a post that was shared through a Lightning Network mailing list. "Full details will be released in 4 weeks (2019-09-27), please upgrade well before then."
He also published a tweet urging node operators to upgrade:
According to a report from Forbes, the delay in the release of these “full details” is a common practice in cybersecurity to prevent exploitation of the vulnerability and to give developers ample time to address relevant issues.
Amount of payment channels and BTC have declined
The alleged vulnerability may not be the only thing that Lightning Network users should be aware of. According to a report from CoinTelegraph, the total value of Bitcoin inside of the network’s channels has declined from roughly 1100 BTC at the beginning of the year to around 850 BTC.
This could be a matter of concern because the speed of the Lightning Network speed is directly related to how much BTC is on the network. The network operates by moving BTC that already exists within the network between users; therefore, adding more BTC to the network (as is sometimes necessary) significantly increases transaction times.
The same report said that the reason behind the decline could be the fact that Bitcoin prices have gone up--Lightning Network users are taking their coins outside of the system and selling them for a profit.
Bitcoin’s increased prices could also mean that Lightning Network users have nothing to worry about--as the value of BTC increases, the size of the transactions on the network will likely decrease, meaning that there won’t be a need to add more BTC into the network.
Additionally, CEO and co-founder of RSK Labs Diego Gutierrez Zaldivar explained that as more payment channels (presumably) continue to open on the Lightning network, these kinds of drops in coin volume won’t matter so much.
“The impact of Lightning’s drop-in capacity is only temporary, and as adoption increases and ecosystem interoperability makes the network as a whole more resilient, events like these will become irrelevant,” he told CoinTelegraph. “Since off-chain networks require only a fraction of the value accessible off the chain for day-to-day transactions, this also limits the overall impact of these kinds of shortages for the end-user.”
However, this perspective may be slightly too optimistic: according to data from BitcoinVisuals, 23% of Lightning Network payment channels have shut down in the past five months alone.
CCN reported that the shrinking number of payment channels was because of a lack of good incentives for node operators: "a full-capacity Bitcoin network results in fees far too high to make micropayments worthwhile. Lightning is a way of serving transactions without having to wait until they’re confirmed in a block, thus sidestepping the competition for fees."
Australian software programmer and open-source advocate Rusty Russell, who authored the majority of the BitcoinLightning Network’s (LN) protocol specification, has warned against vulnerabilities in the Lightning Network protocol that would cause users to lose money.
The vulnerability may be related to Eclair, a Lightning Network-equipped Bitcoin wallet, which Russell advised users to update.
Russell also told users to update their Lightning Network nodes as soon as possible: "security issues have been found in various lightning projects which could cause loss of funds," he wrote in a post that was shared through a Lightning Network mailing list. "Full details will be released in 4 weeks (2019-09-27), please upgrade well before then."
He also published a tweet urging node operators to upgrade:
According to a report from Forbes, the delay in the release of these “full details” is a common practice in cybersecurity to prevent exploitation of the vulnerability and to give developers ample time to address relevant issues.
Amount of payment channels and BTC have declined
The alleged vulnerability may not be the only thing that Lightning Network users should be aware of. According to a report from CoinTelegraph, the total value of Bitcoin inside of the network’s channels has declined from roughly 1100 BTC at the beginning of the year to around 850 BTC.
This could be a matter of concern because the speed of the Lightning Network speed is directly related to how much BTC is on the network. The network operates by moving BTC that already exists within the network between users; therefore, adding more BTC to the network (as is sometimes necessary) significantly increases transaction times.
The same report said that the reason behind the decline could be the fact that Bitcoin prices have gone up--Lightning Network users are taking their coins outside of the system and selling them for a profit.
Bitcoin’s increased prices could also mean that Lightning Network users have nothing to worry about--as the value of BTC increases, the size of the transactions on the network will likely decrease, meaning that there won’t be a need to add more BTC into the network.
Additionally, CEO and co-founder of RSK Labs Diego Gutierrez Zaldivar explained that as more payment channels (presumably) continue to open on the Lightning network, these kinds of drops in coin volume won’t matter so much.
“The impact of Lightning’s drop-in capacity is only temporary, and as adoption increases and ecosystem interoperability makes the network as a whole more resilient, events like these will become irrelevant,” he told CoinTelegraph. “Since off-chain networks require only a fraction of the value accessible off the chain for day-to-day transactions, this also limits the overall impact of these kinds of shortages for the end-user.”
However, this perspective may be slightly too optimistic: according to data from BitcoinVisuals, 23% of Lightning Network payment channels have shut down in the past five months alone.
CCN reported that the shrinking number of payment channels was because of a lack of good incentives for node operators: "a full-capacity Bitcoin network results in fees far too high to make micropayments worthwhile. Lightning is a way of serving transactions without having to wait until they’re confirmed in a block, thus sidestepping the competition for fees."
Rachel is a self-taught crypto geek and a passionate writer. She believes in the power that the written word has to educate, connect and empower individuals to make positive and powerful financial choices. She is the Podcast Host and a Cryptocurrency Editor at Finance Magnates.
Worldcoin Defies Regulatory Challenges: Seeks Partnership with OpenAI
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
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#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
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#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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