The Bitcoin SoftWar begins as Lowery highlights veteran’s PoW security solution making hacks unprofitable

Mike Sires, a military veteran from Dublin, Ohio, has developed AuthLN, a proof-of-work authentication protocol that aims to reduce cybercrime by introducing a financial cost to unauthorized login attempts. Drawing on his experience with Bitcoin and inspiration from Jason Lowery’s “Softwar” thesis, Sires seeks to make cyberattacks unprofitable by leveraging the Bitcoin Lightning Network.

Sires was introduced to Bitcoin in 2023 after reading Lowery’s thesis, which presents Bitcoin as more than just a financial innovation but as a critical technology for national security and power projection in cyberspace. The thesis argues that Bitcoin’s proof-of-work mechanism allows for the projection of physical power into the digital realm, converting real-world energy into digital security. This concept resonated with Sires, who saw the potential for applying proof-of-work principles beyond digital assets.

Understanding that cybercriminals often face no cost when attempting to breach systems—a factor contributing to cybercrime’s profitability—Sires developed AuthLN to address this vulnerability. The protocol requires users to stake a denomination of Bitcoin to validate their identity before accessing a system. By introducing a financial deterrent, AuthLN aims to shift cybersecurity from a reactive to a proactive stance.

AuthLN operates using Lightning Hold Invoices. During the authentication process, a user reserves Bitcoin in a hold invoice. If the user successfully logs in, the invoice is canceled, and the Bitcoin remains with the user. If authentication fails, the user forfeits the staked Bitcoin, which is transferred to the resource owner. This mechanism imposes a cost on unauthorized access attempts, potentially deterring cybercriminals who rely on the attack contact.

Initially targeting enterprise organizations, AuthLN seeks to replace traditional multi-factor authentication methods and enhance cybersecurity measures. By integrating with existing systems, it aims to prevent brute-force attacks and compromised credentials, significant vectors for data breaches. Sires emphasizes that authorized users experience minimal changes to their login process, while unauthorized users face financial barriers.

During a recent Bitcoin meetup in Columbus, Ohio, Sires demonstrated the AuthLN prototype. Before logging in, users scan a QR code and stake Bitcoin via the Lightning Network. The system focuses on verifying user intent, adding a layer of security by…