Block diffusion delay attack and its countermeasures in a Bitcoin network

Abstract

SummaryIn the Bitcoin system, transactions and their collections (i.e., blocks) are distributed over a peer‐to‐peer (P2P) network (i.e., Bitcoin network) constructed by participating nodes. Each node maintains a distributed ledger (i.e., blockchain) consisting of retrieved blocks. Therefore, speedy block distribution over the Bitcoin network is essential for all nodes to reach a global consensus on the blockchain. On the other hand, Bitcoin clients are developed as open source software, and thus they can be modified by malicious users. Existing work has pointed out that an attacker can delay the block propagation between neighboring nodes by exploiting the regular timeout mechanism for unexpected slow block transfer caused by temporal network trouble. In this paper, we focus on block diffusion delay attacks, where multiple attackers collude with a specific miner (i.e., a special node that creates new blocks and broadcasts these blocks to the other miners) to disturb the propagation of blocks generated by competing miners. Through simulation experiments, we first reveal that about 30% of honest nodes cannot normally retrieve a block when there are only 1% of the nodes in the system are high‐degree adversary nodes in the system. This indicates that the malicious miner colluding with the attackers can intentionally delay the diffusion of the block mined by the competing miner, so as to win the competitive block diffusion even if it loses at the competitive block mining. To alleviate the block diffusion delay attack, we propose two kinds of countermeasures: a proactive approach that is a speedy recovery method from the interruption by adjusting the timeout value and a reactive approach that is a block retrieval node selection method based on the past download rate from each neighbor. Through simulation experiments, we show the countermeasures can effectively alleviate the risk.