NodeyMcNodeface01 asked 3 months ago

How can I protect myself from being force closed where the other node pays all the channel liquidity as a huge transaction fee?

I've had a channel force closed where the other node paid 907,128 sats transaction fee which is nearly all of the channel's (my outbound) liquidity. I don't think it's a scam because presumably only the miner benefitted. I am trying to ascertain the other node's motivation.  If this is a risk of running a Lightning Node please help me understand how I can mitigate it and whether it should be publicised more widely. Thank you

3 Comments

NodeyMcNodeface01

NodeyMcNodeface01 wrote 3 months ago

OK, I found my own answer and I am posting it here for education purposes:

 Lightning Network developers are aware of the issue related to force closing a channel and spending the other node's funds as a transaction fee. This issue, known as the "griefing attack," is a known vulnerability in the design of the Lightning Network. 
 The party initiating the force closure can potentially set the transaction fee arbitrarily high, using the funds from the other party's balance to pay for it. This could result in a situation where the transaction fee consumes a significant portion of the other party's funds. 
 Developers are actively working on various proposals to mitigate these and other types of attacks. 

Clearly there is no solution yet. I will publish the name of the offending node if requested so that others can be warned about them.


Cogmentis

Cogmentis wrote 3 months ago

Definitely need to  know who is griefing to avoid this node in future.  That's an insane risk, sorry you've had it happen to you.
Can't believe this has been an issue since 2020 :-/


NodeyMcNodeface01

NodeyMcNodeface01 wrote 3 months ago

I have messaged Cogmentis directly with the information which I will do with anyone else who wants to know. Until Admin steps in I don't want to violate any protocols.
I watched an interesting interview with Amboss founder Jesse Shrader who pointed out that the vast bulk of Lightning Node operators are altruistic amateurs who don't make money but wish to support the build-out. As the old saying goes; "one bad apple can ruin the whole barrel".

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