Dissecting Blockchain Network Partitioning Attacks and Novel Defense for Bitcoin and Ethereum

Cryptocurrencies and permissionless blockchains allow nodes from all over the world to join, and their rapid development has created enormous blockchain networks with nodes spanning the globe. Blockchain network partitioning attacks split the network into separate node groups through disrupting communication, causing information inconsistency, and facilitating malicious behaviors like double-spending and selfish mining, threatening the blockchain security. Existing research primarily studies concrete partitioning attack methods. However, it is hard to analyze practical post-attack security and efficiency impacts on blockchains and design effective countermeasures. This paper studies practical network partitioning attacks’ impacts on existing proof-of-work-based (Bitcoin) and proof-of-stake-based (Ethereum) permissionless blockchains. We theoretically analyze and experimentally confirm the adverse effects of network partitioning on blockchain performance and security. Network partitioning will cause blockchain throughput to plummet, and cause block generation delay to increase rapidly. In our experiments on Ethereum 2.0, when the bandwidth between the partitioned networks is lower than 768 Kbps, the throughput begins to plummet precipitously until it ultimately falls to 0. What’s worse, network partitioning will significantly increase the success rate of double-spending. In our experiments on Bitcoin, when the bandwidth between the partitioned networks is less than 256 Kbps, the success rate of double-spending reaches 50%. To solve the above issues, we propose countermeasures leveraging a freezing threshold to safeguard the security of permissionless blockchains and resist double-spending attacks. We experimentally validate that the countermeasures enhance the resistance of permissionless blockchains to network partitioning attacks. It reduces the probability of double-spending in partitioned networks, thereby ensuring security and reliability.