Large Bitcoin transaction briefly took down bulk of Lightning Network

A Bitcoin developer created and executed a complex transaction on the Bitcoin blockchain that brought down a large chunk of the Lightning Network on Oct. 9.

The Lightning Network is a layer built on top of Bitcoin that’s designed to handle high amounts of low-value transfers. It is still in the experimental phase, and those running Lightning nodes also have to run Bitcoin nodes.

The transaction was a multi-sig payment, where multiple cryptographic keys are used to sign a single transaction. Normally, these kinds of transactions have a handful of participants. In this case, Bitmatrix Founder Burak Keceli decided to test the boundaries of what is possible. He created a 998 out of 999 multi-sig — where 998 keys had to be used to sign the transaction out of a possible 999. The transaction went through and only cost the developer $4.82 in transaction fees (which is relatively cheap, considering the complexity).

The transaction caused problems for the Lightning Network. Many users complained that they were unable to stay in sync with the network, making it inaccessible for these users via their own nodes. This was due to a bug in the parsing library of an implementation of Bitcoin called btcd. It was mistakenly still checking a limit from an old version of the code.

The bug has now been fixed among Lightning node implementations.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.