The Lightning Network, a well-known solution for enhancing the scalability of Bitcoin, is currently facing intense scrutiny due to a series of security vulnerabilities unveiled by Antoine Riard, an open-source developer associated with Bitcoin and Lightning.
Riard Alarms about New Threats to Lightning Network
These vulnerabilities, as identified in discussions on the official mailing list of the Linux Foundation, go by the names CVE-2023-40231, CVE-2023-40232, CVE-2023-40233, and CVE-2023-40234.
Riard’s concern revolves around the Lightning Network’s exposure to a novel form of attack known as “replacement cycling attacks.” Addressing these vulnerabilities, he posits, might necessitate fundamental alterations at the base layer of Bitcoin.
Such changes could involve the implementation of a comprehensive memory-intensive transaction history or even a consensus upgrade. Riard’s decision to step back from his involvement in the development of the Lightning Network and its various implementations has garnered attention on social media platforms.
Riard’s revelation of vulnerabilities in the Lightning Network raises critical questions about the security and stability of Bitcoin’s scalability solutions. The potential need for foundational changes in Bitcoin’s structure underscores the evolving nature of the crypto landscape and the ongoing quest for a robust and secure decentralized financial system.
New SHIB-Based Stablecoin On The Way
Taking to a post on social media platform X, Vet Kusama, a member of the Shiba Inu team, talked about the purpose of a stablecoin earlier highlighted by SHIB founder Ryoshi. Shi would be a stablecoin, meaning a cryptocurrency pegged 1:1 to a fiat currency like the U.S. dollar to keep its value stable.
As demonstrated by BUSD on the BSC chain, the concept of a stablecoin is to give investors a chance to participate in the cryptocurrency sector while experiencing lower levels of volatility. Vet Kusama draws a parallel to BUSD, noting that the workings of the SHI on Shibarium would be likened to BUSD on the BSC chain.
There are no doubts about what a stablecoin would do for Shiba Inu, as it would give the overall ecosystem more utility and, according to Kusama, a ‘trading volume growth.’
Hong Kong’s SFC to Update Policies on Digital Assets Sales
The Hong Kong Securities and Futures Commission (SFC) has announced intentions to revise policies on digital currency sales and requirements in response to recent market developments and industry concerns. Certain virtual currency products will only be available to experienced investors, according to the new criteria, while cryptocurrency intermediaries must check their clients’ expertise of investing in virtual assets before completing transactions.
The SFC considers virtual assets to be complex products, subject to the same restrictions as comparable financial instruments. While the exact impact of the recent JPEX exchange scam on the amended policy is unknown, the SFC hopes to raise investor awareness of risks by forming a joint working group with the Hong Kong Police Force to examine suspected criminal actions involving digital assets.