BitPico Takes Responsibility for Lightning Network DoS Attack

Mysterious BitPico admitted creating a network stress tool for Lightning Network
04 April 2018   1126

On March 21 we have reported about the DDoS attack on Lightning Network nodes, which was confirmed by Alex Bosworth, one of the developers of technology. The developer retwitted the screenshot of a chat with BitPico in Slack, and now there are new details of the case, that we would like to report about.

The mysterious twitter account under the name BitPico yesterday posted a screenshot and admitted creating a network stress tool for Lightning Network. According to him, the network was operating out of 8 countries running 22 attack vectors in-parallel from about 384 endpoints.

BitPico tweet regarding lightning network DoS attack BitPico tweet regarding Lightning Network DoS attack 

Developers have performed a Denial-of-Service, a cyber-attack in which the perpetrator seeks to make a machine or network resource unavailable to its intended users by temporarily or indefinitely disrupting services of a host connected to the Internet.

There is not so much information about BitPico and their indentity, but as we reported previously BitPico stated that, contrary to the statement on the refusal of the SegWit2X hardfork, it was intending to implement it. Also BitPico stated that it was controlling about 30% of the Bitcoin network hashrate.

Bear Market to Hit Mining Hard

BitMEX research division presented an analysis of the impact of market decline on the mining industry
11 December 2018   63

The cryptocurrency market has experienced a marked decline over the past weeks. The BitMEX research division presented an analysis of the impact of these events on the mining industry. Bitcoin hash rate has fallen by 31% since the beginning of November, which is equivalent to the capacity of 1.3 million Bitmain S9 devices. From this, BitMEX concludes that miners as a class are in a difficult situation, however, they may have different conditions, and those who pay more for electricity, are forced to turn off their equipment first, while others may still be quite viable.

The decrease in the price of Bitcoin by 45% since the beginning of November has already caused two recalculations of the complexity of mining to the lower side - by 7.4% and 15.1% on November 16 and December 3, respectively. The first recalculation turned out to be the largest since January 2013, the second - since October 2011.

Bitcoin mining revenue fell from $ 13 million per day in early November to $ 6 million per day in early December. The fall in the size of the miner's encouragement turned out to be even more rapid than the fall in the price of cryptocurrency. This is due to the delay in recalculating the complexity of mining. For the six-day period ending December 3, 21.8% fewer blocks were mined than expected, since the miners left the network before recalculating the difficulty. As a result, in addition to reducing the size of the miners' encouragement in dollar terms, due to lower asset prices, they received 21.8% less bitcoin awards.

One of the popular reasons for the recent decline in the cryptocurrency market is that miners sold bitcoins to cover their costs of hash warsin the Bitcoin Cash network. The monitoring platform Boltzmann recorded an unusually large sale of Bitcoin by the miner on November 12, that is, 3 days before the hard fork of Bitcoin Cash.

BitMEX assumes that the actions of miners over the past weeks could have played a significant role in reducing the market, however, recommends not overestimating their value and reminds that in a bearish trend, prices continue to fall regardless of asset movements and news.