Redditor ZipoTm loses BTC worth $30,000 following Lightning Network’s confusing protocol – Bitcoin News

ZipoTm, a Redditor, turned into an unfortunate Lightning user as he lost BTC worth $30,000 after force-closing a channel using an older invalid state. The network carries the distribution of funds when a channel is closed. Earlier in September, a hidden bug initiated the sale of fake coins on the platform. Its proponents have long touted the Lightning Network as a speedy, low-cost solution to Bitcoin’s scaling issues.

A Redditor and Lightning network user claims to have lost Bitcoins worth 30,000 USD after force-closing a channel using an older invalid state. ZipoTm confessed the unfortunate incident on a thread on the crypto forum. The loss followed the confusing protocol rendered on the network where the funds are distributed when a channel is closed. One of the Redditor explained, “If you force close using an older invalid state, they can take the money while it’s time locked if their node is online.” 

The issue rises to be the second troublesome occurrence on the Lightning Network in months. Prior to this, September saw the revelation of a hidden bug that conceded the spending of fake coins on the network. The disclosure indicated Bitcoin Unlimited’s Peter Rizun to chide: “Many people pointed out how LN channel balances were claims on real bitcoins, and not actually real bitcoins themselves, and that problems like this would surface. LN proponents retorted that it was impossible for channel balances to be unbacked. LN proponents were wrong.”

With the Lightning Conference having taken place in Berlin over the weekend, proves that notwithstanding being super swift, Lightning Network is not yet production-ready in any shape or form – and its developers will have to perform harder to revive confidence in the technology.

Saloni Sheelwant
Saloni Sheelwant treasures to research and write about the new startups and technologies thriving at a very fast pace.

Leave a reply

Please enter your comment!
Please enter your name here