Researchers find that Bitcoin’s Lightning network is becoming ‘increasingly centralized’

posted about 2 months ago
Bitcoin's Lightning network is growing "increasingly centralized," making it more susceptible to attacks, asserts a new paper by security researchers. Released earlier this month, the paper "Lightning Network: a second path towards centralisation of the Bitcoin economy" (by researchers Jian-Hong Lin, Kevin Primicerio, Tiziano Squartini, Christian Decker and Claudio J. Tessone) concludes that Lightning has an "unequal wealth distribution" with a smaller percentage of nodes on the network gradually accumulating a larger proportion of Bitcoin.

Specifically, the researchers found that 10% of the nodes control 80% of funds on the network. The situation, they caution, creates room for disruption. If most of the Bitcoin is held mostly on a few nodes, this could make the network more vulnerable to attacks because removing these routing nodes would leave gaping holes.
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