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IOTA is a distributed ledger technology that relies on a peer-to-peer (P2P)network for communications. Recently an auto-peering algorithm was proposed tobuild connections among IOTA peers according to their "Mana" endowment, whichis an IOTA internal reputation system. This paper's goal is to detect potentialvulnerabilities and evaluate the resilience of the P2P network generated usingIOTA auto-peering algorithm against eclipse attacks. In order to do so, weinterpret IOTA's auto-peering algorithm as a random network formation model andemploy different network metrics to identify cost-efficient partitions of thenetwork. As a result, we present a potential strategy that an attacker can useto eclipse a significant part of the network, providing estimates of costs andpotential damage caused by the attack. On the side, we provide an analysis ofthe properties of IOTA auto-peering network ensemble, as an interesting classof homophile random networks in between 1D lattices and regular Poisson graphs.

Heterogeneity- and homophily-induced vulnerability of a P2P network formation model: the IOTA auto-peering protocol