A thought experiment on bitcoin for payroll privacy



Summary:

ZmnSCPxj, a contributor to the Lightning Network, has warned against permanently increasing the size of the channel with an employee in exchange for a permanent raise. He argues that this could lead to employees potentially discovering the bi-weekly salary of their colleagues through gossiped channels on the network. For example, if one employee lost a bet to another and paid via Lightning invoice, the invoice would contain the node ID of the other employee. Using this information and knowledge of the channel between the cut-throat company and the other employee, the employee who lost the bet could guess the bi-weekly salary of the other employee. However, ZmnSCPxj believes that as an employee gets promoted and pulls a larger salary, the channel with the company becomes less of an indicator of their actual salary. Additionally, he suggests that the size of all channels is not an accurate indicator of an employee's salary, as they may have other sources of income or share a family node with their spouse(s).


Updated on: 2023-06-14T16:01:02.639705+00:00