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 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 can delay or drop transactions to create denial-of-service. We focus on SpeedyMurmurs as a representative of such protocols. We identify two attacker node selection strategies; one based on the position in the routing tree, and the other on betweenness centrality. Our simulation-driven study shows that while they are both effective, the centrality-based attack approaches near-optimal effectiveness. We also show that the attacks are ineffective in less centralized networks and discuss incentives for the participants in PCNs to create less centralized topologies through the payment channels they establish among themselves.
The payment channel, which allows two parties to perform micropayments without involving the blockchain, has become a promising proposal to improve the scalability of decentralized ledgers such as Bitcoin and Ethereum. Payment channels have been extended to the payment network, through which users can utilize existing channels as intermediary links to route coins to others. However, routing payments through multiple channels bears nontrivial overheads. It requires every intermediary channel to lock a portion of its available capacity until the payment is settled. This may lead to deadlock in a…
Payment channel networks are supposed to overcome technical scalability limitations of blockchain infrastructure by employing a special overlay network with fast payment confirmation and only sporadic settlement of netted transactions on the blockchain. However, they introduce economic routing constraints that limit decentralized scalability and are currently not well understood. In this paper, we model the economic incentives for participants in payment channel networks. We provide the first formal model of payment channel economics and analyze how the cheapest path can be found. Additionally…
Payment channel networks provide a fast and scalable solution to relay funds, acting as a second layer to slower and less scalable blockchain protocols. In this paper, we present an accessible, low-cost attack in which the attacker paralyzes multiple payment network channels for several days. The attack is based on overloading channels with requests that are kept unresolved until their expiration time. Reaching the maximum allowed unresolved requests (HTLCs) locks the channel for new payments. The attack is in fact inherent to the way off-chain networks are constructed, since limits on the num…
Near-Field Communication (NFC) is a modern technology for short range communication with a variety of applications ranging from physical access control to contactless payments. These applications are often heralded as being more secure, as they require close physical proximity and do not involve Wi-Fi or mobile networks. However, these systems are still vulnerable to security attacks at the time of transaction, as they require little to no additional authentication from the user's end. In this paper, we propose a method to attack mobile-based NFC payment methods and make payments at locations …
Lightning Network can execute unlimited number of off-chain payments, without incurring the cost of recording each of them in the blockchain. However, conditional payments in such networks is susceptible to Griefing Attack. In this attack, an adversary doesn't resolve the payment with the intention of blocking channel capacity of the network. We propose an efficient countermeasure for the attack, known as Griefing-Penalty. If any party in the network mounts a griefing attack, it needs to pay a penalty proportional to the collateral cost of executing a payment. The penalty is used for compensat…
Payment protocols developed to realize off-chain transactions in Payment channel network (PCN) assumes the underlying routing algorithm transfers the payment via a single path. However, a path may not have sufficient capacity to route a transaction. It is inevitable to split the payment across multiple paths. If we run independent instances of the protocol on each path, the execution may fail in some of the paths, leading to partial transfer of funds. A payer has to reattempt the entire process for the residual amount. We propose a secure and privacy-preserving payment protocol, CryptoMaze. In…
Path-based transaction (PBT) networks, which settle payments from one user to another via a path of intermediaries, are a growing area of research. They overcome the scalability and privacy issues in cryptocurrencies like Bitcoin and Ethereum by replacing expensive and slow on-chain blockchain operations with inexpensive and fast off-chain transfers. In the form of credit networks such as Ripple and Stellar, they also enable low-price real-time gross settlements across different currencies. For example, SilentWhsipers is a recently proposed fully distributed credit network relying on path-base…
BIP70 is the Bitcoin payment protocol for communication between a merchant and a pseudonymous customer. McCorry et al. (FC~2016) showed that BIP70 is prone to refund attacks and proposed a fix that requires the customer to sign their refund request. They argued that this minimal change will provide resistance against refund attacks. In this paper, we point out the drawbacks of McCorry et al.'s fix and propose a new approach for protection against refund attacks using the Bitcoin multi-signature mechanism. Our solution does not rely on merchants storing refund requests, and unlike the previous …
Payment channel networks (PCNs) are viewed as one of the most promising scalability solutions for cryptocurrencies today. Roughly, PCNs are networks where each node represents a user and each directed, weighted edge represents funds escrowed on a blockchain; these funds can be transacted only between the endpoints of the edge. Users efficiently transmit funds from node A to B by relaying them over a path connecting A to B, as long as each edge in the path contains enough balance (escrowed funds) to support the transaction. Whenever a transaction succeeds, the edge weights are updated according…
Payment systems are a critical component of everyday life in our society. While in many situations payments are still slow, opaque, siloed, expensive or even fail, users expect them to be fast, transparent, cheap, reliable and global. Recent technologies such as distributed ledgers create opportunities for near-real-time, cheaper and more transparent payments. However, in order to achieve a global payment system, payments should be possible not only within one ledger, but also across different ledgers and geographies. In this paper we propose Secure Payments with Overlay Networks (SPON), a ser…
Payment channel networks (PCN) are used in cryptocurrencies to enhance the performance and scalability of off-chain transactions. Except for opening and closing of a payment channel, no other transaction requests accepted by a PCN are recorded in the Blockchain. Only the parties which have opened the channel will know the exact amount of fund left at a given instant. In real scenarios, there might not exist a single path which can enable transfer of high value payments. For such cases, splitting up the transaction value across multiple paths is a better approach. While there exists several app…
In multi-path routing schemes for payment-channel networks, Alice transfers funds to Bob by splitting them into partial payments and routing them along multiple paths. Undisclosed channel balances and mismatched transaction fees cause delays and failures on some payment paths. For atomic transfer schemes, these straggling paths stall the whole transfer. We show that the latency of transfers reduces when redundant payment paths are added. This frees up liquidity in payment channels and hence increases the throughput of the network. We devise Boomerang, a generic technique to be used on top of m…
The Lightning Network is a scaling solution for Bitcoin that promises to enable rapid and private payment processing. In Lightning, multi-hop payments are secured by utilizing Hashed Time-Locked Contracts (HTLCs) and encrypted on the network layer by an onion routing scheme to avoid information leakage to intermediate nodes. In this work, we however show that the privacy guarantees of the Lightning Network may be subverted by an on-path adversary conducting timing attacks on the HTLC state negotiation messages. To this end, we provide estimators that enable an adversary to reduce the anonymity…
As Lightning network payments are neither broadcasted nor publicly stored. Thus LN has been seen not only as scalability but also as privacy solution for Bitcoin. The protocol guarantees that only the latest channel state can be confirmed on channel closure. LN nodes gossip about channels available for routing and their total capacities. To issue a (multi-hop) payment, the sender creates a route based on its local knowledge of the graph. As local channel balances are not public, payments often fail due to insufficient balance at an intermediary hop. In that case, the payment is attempted along…
Ransomware attacks are among the most severe cyber threats. They have made headlines in recent years by threatening the operation of governments, critical infrastructure, and corporations. Collecting and analyzing ransomware data is an important step towards understanding the spread of ransomware and designing effective defense and mitigation mechanisms. We report on our experience operating Ransomwhere, an open crowdsourced ransomware payment tracker to collect information from victims of ransomware attacks. With Ransomwhere, we have gathered 13.5k ransom payments to more than 87 ransomware c…
We show how third-party web trackers can deanonymize users of cryptocurrencies. We present two distinct but complementary attacks. On most shopping websites, third party trackers receive information about user purchases for purposes of advertising and analytics. We show that, if the user pays using a cryptocurrency, trackers typically possess enough information about the purchase to uniquely identify the transaction on the blockchain, link it to the user's cookie, and further to the user's real identity. Our second attack shows that if the tracker is able to link two purchases of the same user…
The Lightning Network is the most widely used payment channel network (PCN) to date, making it an attractive attack surface for adversaries. In this paper, we analyze the Lightning Network's PCN topology and investigate its resilience towards random failures and targeted attacks. In particular, we introduce the notions of channel exhaustion and node isolation attacks and show that the Lightning Network is susceptible to these attacks. In a preliminary analysis, we confirm that the Lightning Network can be classified as a small-world and scale-free network. Based on these findings, we develop a…
In mobile ad hoc networks, by attacking the corresponding routing protocol, an attacker can easily disturb the operations of the network. For ad hoc networks, till now many secured routing protocols have been proposed which contains some disadvantages. Therefore security in ad hoc networks is a controversial area till now. In this paper, we proposed a Lightweight and Attack Resistant Authenticated Routing Protocol (LARARP) for mobile ad hoc networks. For the route discovery attacks in MANET routing protocols, our protocol gives an effective security. It supports the node to drop the invalid pa…
Lightning Network (LN) is designed to amend the scalability and privacy issues of Bitcoin. It's a payment channel network where Bitcoin transactions are issued off chain, onion routed through a private payment path with the aim to settle transactions in a faster, cheaper, and private manner, as they're not recorded in a costly-to-maintain, slow, and public ledger. In this work, we design a traffic simulator to empirically study LN's transaction fees and privacy provisions. The simulator relies on publicly available data of the network structure and generates transactions under assumptions we a…
In this paper, we propose a canonical prune-and-SAT (CP&SAT) attack for breaking state-of-the-art routing-based obfuscation techniques. In the CP&SAT attack, we first encode the key-programmable routing blocks (keyRBs) based on an efficient SAT encoding mechanism suited for detailed routing constraints, and then efficiently re-encode and reduce the CNF corresponded to the keyRB using a bounded variable addition (BVA) algorithm. In the CP&SAT attack, this is done before subjecting the circuit to the SAT attack. We illustrate that this encoding and BVA-based pre-processing significantly reduces …
We revisit the fundamental question of Bitcoin's security against double spending attacks. While previous work has bounded the probability that a transaction is reversed, we show that no such guarantee can be effectively given if the attacker can choose when to launch the attack. Other approaches that bound the cost of an attack have erred in considering only limited attack scenarios, and in fact it is easy to show that attacks may not cost the attacker at all. We therefore provide a different interpretation of the results presented in previous papers and correct them in several ways. We provi…
Nowadays, the usage of smartphones and their applications have become rapidly increasing popular in people's daily life. Over the last decade, availability of mobile money services such as mobile-payment systems and app markets have significantly increased due to the different forms of apps and connectivity provided by mobile devices such as 3G, 4G, GPRS, and Wi-Fi, etc. In the same trend, the number of vulnerabilities targeting these services and communication networks has raised as well. Therefore, smartphones have become ideal target devices for malicious programmers. With increasing the nu…
Whispers of Wealth: Red-Teaming Google's Agent Payments Protocol via Prompt Injection
School of Computing University of Georgia Athens, USA（佐治亚大学计算机学院 美国亚特兰大）；Department of Information Technology Kennesaw State University Kennesaw, USA（凯斯韦尔州立大学信息科技学院 美国凯斯韦尔）
Cryptocurrencies redefined how money can be stored and transferred among users. However, independent of the amount being sent, public blockchain-based cryptocurrencies suffer from high transaction waiting times and fees. These drawbacks hinder the wide use of cryptocurrencies by masses. To address these challenges, payment channel network concept is touted as the most viable solution to be used for micro-payments. The idea is exchanging the ownership of money by keeping the state of the accounts locally. The users inform the blockchain rarely, which decreases the load on the blockchain. Specif…
Blockchains such as Bitcoin and Ethereum execute payment transactions securely, but their performance is limited by the need for global consensus. Payment networks overcome this limitation through off-chain transactions. Instead of writing to the blockchain for each transaction, they only settle the final payment balances with the underlying blockchain. When executing off-chain transactions in current payment networks, parties must access the blockchain within bounded time to detect misbehaving parties that deviate from the protocol. This opens a window for attacks in which a malicious party c…
Cyber security threats to the payment and banking system have become a worldwide menace. The phenomenon has forced financial institutions to take risks as part of their business model. Hence, deliberate investment in sophisticated technologies and security measures has become imperative to safeguard against heavy financial losses and information breaches that may occur due to cyber-attacks. The proliferation of cyber crimes is a huge concern for various stakeholders in the banking sector. Usually, cyber-attacks are carried out via software systems running on a computing system in cyberspace. A…
EMV is the international protocol standard for smartcard payment and is used in over 9 billion cards worldwide. Despite the standard's advertised security, various issues have been previously uncovered, deriving from logical flaws that are hard to spot in EMV's lengthy and complex specification, running over 2,000 pages. We formalize a comprehensive symbolic model of EMV in Tamarin, a state-of-the-art protocol verifier. Our model is the first that supports a fine-grained analysis of all relevant security guarantees that EMV is intended to offer. We use our model to automatically identify flaws…
Making a payment in a privacy-aware payment channel network is achieved by trying several payment paths until one succeeds. With a large network, such as the Lightning Network, a completion of a single payment can take up to several minutes. We introduce a network imbalance measure and formulate the optimization problem of improving the balance of the network as a sequence of rebalancing operations of the funds within the channels along circular paths within the network. As the funds and balances of channels are not globally known, we introduce a greedy heuristic with which every node despite …
Bitcoin, Ethereum and other blockchain-based cryptocurrencies, as deployed today, cannot scale for wide-spread use. A leading approach for cryptocurrency scaling is a smart contract mechanism called a payment channel which enables two mutually distrustful parties to transact efficiently (and only requires a single transaction in the blockchain to set-up). Payment channels can be linked together to form a payment network, such that payments between any two parties can (usually) be routed through the network along a path that connects them. Crucially, both parties can transact without trusting h…
Payment channel network (PCN) is a layer-two scaling solution that enables fast off-chain transactions but does not involve on-chain transaction settlement. PCNs raise new privacy issues including balance secrecy, relationship anonymity and payment privacy. Moreover, protecting privacy causes low transaction success rates. To address this dilemma, we propose zk-PCN, a privacy-preserving payment channel network using zk-SNARKs. We prevent from exposing true balances by setting up \textit{public balances} instead. Using public balances, zk-PCN can guarantee high transaction success rates and pro…
Dynamic Source Routing (DSR) is a well known source routing protocol for ad hoc networks. The algorithm depends on the cooperative participation of the nodes that enables route discovery from a source node to a destination node. However, if a group of nodes do not cooperate, the performance of the DSR protocol may be severely degraded. This paper presents a probabilistic attack model on the DSR protocol and analyses its effect on the routing performance. Simulations results of the model show that the effect of the attack is catastrophic only if a large number of nodes are compromised and there…
Attacks on Internet routing are typically viewed through the lens of availability and confidentiality, assuming an adversary that either discards traffic or performs eavesdropping. Yet, a strategic adversary can use routing attacks to compromise the security of critical Internet applications like Tor, certificate authorities, and the bitcoin network. In this paper, we survey such application-specific routing attacks and argue that both application-layer and network-layer defenses are essential and urgently needed. While application-layer defenses are easier to deploy in the short term, we hope…
Shandong University（山东大学）；Nanyang Technological University（南洋理工大学）；Inspur Yunzhou Industrial Internet Co., Ltd（浪潮云洲工业互联网有限公司）；The Hong Kong Polytechnic University（香港理工大学）
As the most successful cryptocurrency to date, Bitcoin constitutes a target of choice for attackers. While many attack vectors have already been uncovered, one important vector has been left out though: attacking the currency via the Internet routing infrastructure itself. Indeed, by manipulating routing advertisements (BGP hijacks) or by naturally intercepting traffic, Autonomous Systems (ASes) can intercept and manipulate a large fraction of Bitcoin traffic. This paper presents the first taxonomy of routing attacks and their impact on Bitcoin, considering both small-scale attacks, targeting …
RerouteGuard: Understanding and Mitigating Adversarial Risks for LLM Routing
The State Key Laboratory of Blockchain and Data Security, Zhejiang University（浙江大学区块链与数据安全国家重点实验室）；The School of Cyber Science and Engineering, Southeast University（东南大学网络空间安全学院）
Blockchain-based cryptocurrencies received a lot of attention recently for their applications in many domains. IoT domain is one of such applications, which can utilize cryptocur-rencies for micro payments without compromising their payment privacy. However, long confirmation times of transactions and relatively high fees hinder the adoption of cryptoccurency based micro-payments. The payment channel networks is one of the proposed solutions to address these issue where nodes establish payment channels among themselves without writing on blockchain. IoT devices can benefit from such payment ne…
Off-chain transaction networks can mitigate the scalability issues of today's trustless electronic cash systems such as Bitcoin. However, these peer-to-peer networks also introduce a new attack surface which is not well-understood today. This paper identifies and analyzes, a novel Denial-of-Service attack which is based on route hijacking, i.e., which exploits the way transactions are routed and executed along the created channels of the network. This attack is conceptually interesting as even a limited attacker that manipulates the topology through the creation of new channels can navigate tr…
Since the inception of the Integrated Circuit (IC), the size of the transistors used to construct them has continually shrunk. While this advancement significantly improves computing capability, fabrication costs have skyrocketed. As a result, most IC designers must now outsource fabrication. Outsourcing, however, presents a security threat: comprehensive post-fabrication inspection is infeasible given the size of modern ICs, so it is nearly impossible to know if the foundry has altered the original design during fabrication (i.e., inserted a hardware Trojan). Defending against a foundry-side …
