Most Bitcoin Maxis believes that Lightning Network is a prospective solution to Bitcoin’s scalability issues. Moreso, they believe, It allows for instant transactions and no fees, which makes it superior.
However, this analogy is a distraction from Bitcoin’s faulty network. They are shifting focus onto a corrupt and centralized third party, which is not even connected in any way with bitcoin.
Below are significant reasons why the BTC Lightning Network is faulty, with many vulnerabilities.
The Bitcoin Lightning Network is Centralized
In the abstract and introduction to his White paper, Satoshi Nakamoto says a third party removes the benefits of Bitcoin. Yet, Lightning Network is just that.
A group of Bitcoin Maximalists is focusing on gaining control of Bitcoin. They don’t care about Satoshi’s vision. Satoshi makes it clear that there are potential risks with going to a third-party network.
The BTC Lightning Network has the potential to scale Bitcoin with billions of daily transactions. But it only works through the centralized banking hubs. Thus, it is not ideal for consumers that want complete freedom and control over their finances.
A recent study reveals that the Lightning Network may be vulnerable to centralization. Researchers Jian-Hong Lin (lead author), Kevin Primicerio, and Claudio J Tessone pointed several red flags. They found a vulnerability in how total capacity has been evolving. And thus, this could lead to vulnerabilities of this protocol going forward.
The study further reveals that only about 10% of nodes control 80% of funds. So, only a few routing nodes hold Bitcoin with power over where they go next. As a result, vulnerability increases due to gaping portals on which hackers might crack.
“Removing hubs leads to the collapse of the network into many components. Thus, it exposes the network to split attacks.” Leading to lightning dividing in two.
Lightning Network Won’t Work on Global Scale
The BTC lightning network capacity is the amount of bitcoin that can be set on this platform at a time. To use it globally by billions scaling would have to go high. This is impossible due to its current size and bandwidth requirements.
Bitcoin Volatility makes LN not Workable
Even if the Lightning Network worked, would it be compelling for anyone to use Bitcoin? Its extreme Volatility makes this problematic and unlikely. How can you buy an item with bitcoin when its price could change within an hour?
Vulnerabilities to Bitcoin Lightning Network
Joost Jager has been a vocal opponent of the Lightning Network for years. He claims its benefits are great but also points out some vulnerabilities. For instance, spam attacks on self-secession transactions from malicious users who want to take advantage.
Here is a list of vulnerabilities to Lightning Network
Griefing attacks have been happening since lightning’s launch. It affects both normal and newly rolled-out wumbo channels.
An attacker could spin up several nodes and jam all a Lightning full node’s connections in a way. That the victim has no link to all honest users, eclipsing them from receiving accurate network data.
An attacker who wants to keep their means open in the presence of a higher volume uses this technique. To do so, they will broadcast conflicting transactions that block each other and prevent both closings. Or, they make them acceptable at different nodes on behalf of two parties.
Is the Bitcoin Lightning Network a failure? It would seem so, as it exposes people to risks of attacks. Yet, some people push it for their selfish agenda.