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August 31, 2019

Bitcoin’s Lightning Network Prompts Warning for Users at Risk of Losing Funds

By Daily Hodl Staff

Various projects being developed on Bitcoin’s Lightning Network (LN) reportedly have security vulnerabilities that could result in users losing their funds. 

According to a report posted on August 30 by Blockstream engineer Rusty Russell,

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“Security issues have been found in various lightning projects which could cause loss of funds.

Full details will be released in 4 weeks (2019-09-27), please upgrade well before then.”

LN is a scaling solution that’s designed to make Bitcoin and other open blockchains much faster and more practical by processing cheap and secure transactions instantly and in small amounts. The project has garnered several high-profile supporters including Twitter and Square CEO Jack Dorsey and Bitcoin advocate Andreas Antonopoulos.

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Lightning Network node operators are urged to update their client software as soon as possible, including making upgrades associated with crypto wallet Eclair.

Currently, the exact nature of the software vulnerabilities remains unknown or has not been publicly disclosed. 

Security disclosures are not uncommon in the crypto space, as platforms are still in the early stages of development. In July, privacy-oriented cryptocurrency Monero (XMR) was found to have major security vulnerabilities. Its team made the disclosure on HackerOne.

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You can find out more information about the Lightning Network upgrade notice here.

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