• Channel jamming is a threat to the Lightning Network which can cause nodes to lose money while their liquidity is locked up.
• Last month, Lightning developer Antoine Riard proposed a formal solution to this problem through a Chaumian ecash token system.
• This system would allow nodes to build a reputation scoring system for users routing payments through them without sacrificing privacy.
Channel jamming is one of the most concerning problems with the Lightning Network. It is an open mechanism to attack nodes on the network, denying them of service and preventing them from routing payments, causing them to lose money while their liquidity is locked up and unable to forward payments that will earn them fees. To combat this threat, last month, Lightning developer Antoine Riard proposed a formal solution to the problem.
The proposed solution is based on a Chaumian ecash token system. This system would enable nodes to build a reputation scoring system for users routing payments through them without having to dox or associate that reputation with a static identifier that would negatively impact peoples’ privacy. This system utilizes a centralized token issued by a mint authority. This token is signed in a blinded way, allowing the receiver of the token to unblind it without invalidating the signature. The issuer is then able to verify that the token is valid and the transaction is completed. This system would then allow nodes to rate users based upon their behavior while still keeping their identity anonymous.
The proposed solution is still in its early stages and will require further development and research before it can be put into practice. However, it is a promising breakthrough in the effort to make the Lightning Network more secure and efficient. If successfully implemented, it could provide a significant boost to the usability and security of the Lightning Network.