Good morning Subhra,

> So introducing proof of knowledge of fund locked instead of revealing the 
> amount of fund locked by counterparties will introduce added complexity while 
> routing but how effective is this going to be against handling attacks like 
> hijacking of routes and channel exhaustion ?

The added complexity is spam-prevention, as mentioned, and not routing in 
particular.
Pathfinding algorithms can just use the lower limit of the rangeproof to filter 
out channels too small to pass a particular payment through, C-Lightning (and 
probably other implementations) already does this, using the known channel 
capacity as the limit (knowledge of the exact channel capacity is a rangeproof 
whose lower limit equals the upper limit, yes?).

Now, since the proofs involved are likely to be larger than just a simple 
64-bit integer that indicates the location of the funding transaction on the 
blockchain (24-bit blockheight, 24-bit transaction index within block, 16-bit 
output index), the spam-prevention might end up requiring *more* data than the 
spam it stops, so ---
(Though if Matt has some ideas here I would be greatly interested --- we do 
have to change the encodings of short-channel-ids at some point, if only to 
support channel factories....)

Regards,
ZmnSCPxj

>
> On Mon, Jan 27, 2020, 20:12 Matt Corallo <lf-li...@mattcorallo.com> wrote:
>
> > Note that there's no real reason lightning nodes *have* to have
> > confidence in that - if a node routes your payment to the next hop, how
> > they do it doesn't really matter. Allowing things like non-lightning
> > "channels" (eg just a contractual agreement to settle up later between
> > two mutually-trusting parties) would actually be quite compelling.
> >
> > The reason lightning nodes *today* require proof-of-funds-locked is
> > largely for DoS resistance, effectively rate-limiting flooding the
> > global routing table with garbage, but such rate-limiting could be
> > accomplished (albeit with a ton more complexity) via other means.
> >
> > Matt
> >
> > On 1/27/20 7:50 AM, Ugam Kamat wrote:
> > > Hey Subhra – In order to have faith that the channel announced by the
> > > nodes is actually locked on the Bitcoin mainchain we need to have the
> > > outpoint (`txid` and `vout`) of the funding transaction. If we do not
> > > verify that the funding transaction has been confirmed, nodes can cheat
> > > us that a particular transaction is confirmed when it is not the case.
> > > As a result we require that nodes announce this information along with
> > > the public keys and the signatures of the public keys that was used to
> > > lock the funding transaction.
> > >
> > >  
> > >
> > > This information is broadcasted in the `channel_announcement` message in
> > > the `short_channel_id` field which includes the block number,
> > > transaction number and vout. Since Bitcoin does not allow confidential
> > > transactions, we can query the blockchain and find out the channel
> > > capacity even when the amounts are never explicitly mentioned.
> > >
> > >  
> > >
> > >  
> > >
> > > Ugam
> > >
> > >  
> > >
> > > *From:* Lightning-dev <lightning-dev-boun...@lists.linuxfoundation.org>
> > > *On Behalf Of *Subhra Mazumdar
> > > *Sent:* Monday, January 27, 2020 12:45 PM
> > > *To:* lightning-dev@lists.linuxfoundation.org
> > > *Subject:* [Lightning-dev] Not revealing the channel capacity during
> > > opening of channel in lightning network
> > >
> > >  
> > >
> > > Dear All,
> > >
> > >          What can be the potential problem if a channel is opened
> > > whereby the channel capacity is not revealed publicly but just a range
> > > proof of the attribute (capacity >0 and capacity < value) is provided ?
> > > Will it pose a problem during routing of transaction ? What are the pros
> > > and cons ?
> > >
> > > I think that revealing channel capacity make the channels susceptible to
> > > channel exhaustion attack or a particular node might be targeted for
> > > node isolation attack ?
> > >
> > >
> > > --
> > >
> > > Yours sincerely,
> > > Subhra Mazumdar.
> > >
> > >
> > > _______________________________________________
> > > Lightning-dev mailing list
> > > Lightning-dev@lists.linuxfoundation.org
> > > https://lists.linuxfoundation.org/mailman/listinfo/lightning-dev
> > >


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