Margherita Favaretto, a student working on remediation protocol for Lightning Network double-spend attacks asked for feedback for a proposed solution to double spend attacks using a “trusted remediation” gossip protocol.
ZmnSCPxj pointed out that double spend attacks are not possible on the Lightning Network unless both parties involved in the channel agree to it, which is not likely, first because the man at the other end of the channel will lose money. Secondly even if the other end of the channel is irrational enough to help the other guy double spend, they will still ask for an invoice and give the money using “existing invoice-payment mechanisms.” ZmnSCPxj added:
If the problem you are trying to solve, is the inadvertent publication of revoked commitment transactions, then the correct solution is not to have revocable transactions in the first place, i.e. eltoo. While it can be argued that it would take time for needed features of eltoo to appear on the blockchain layer (SIGHASH_NOINPUT_UNSAFE), it would also take time to implement “trusted remediation”, by which time the problem could be solved by switching over to eltoo.
Dmitry Petukhov published a detailed article on cover address swap. We present a summary and explore covert swaps, how they can affect Bitcoin users and a few simple solutions wallets (or even you!) can implement to protect themselves.
Ledger published an article exploring the importance of hardware wallets and a look inside the technologies used inside their own wallets. They cover everything from hardware and chip design to the firmware running on the devices.
On of the pros of Bitcoin since its birth is that it’s a public ledger, anyone is allowed to send and receive payments and data on the Blockchain. However, Bitcoin’s network does not provide a way of encrypting communication between nodes, which allows manipulation of data, mass surveillance and analysis of its users.
Although encrypted communication is currently a possibility with VPNs, TOR or other mechanisms, it is not easy for the average user to setup such a connection. There is BIP draft called BIP151 that aims to add encrypted communication to Bitcoin’s network and which currently seems implemented only by Armory.