Published on: 2021-05-18T08:19:47+00:00
In an email conversation between Lee and LL, the privacy challenges associated with lightning are discussed. LL explains that the ability to identify the node that funded a lightning channel and determine the owner of the channel close output depends on whether private channels are used exclusively or not. If both private and public channels are funded using the same wallet, it may be possible to identify the owner of the private channels and its outputs. LL suggests a solution to enhance the privacy of lightning by addressing the "Removing cross-layer links" problem on bitcoin-problems.github.io. This solution aims to turn lightning into an effective layer-1 privacy tool. The conversation provides links to relevant resources supporting this discussion.The conversation further delves into the possibility of determining which output from a 2 of 2 multisig belongs to whom if there are differences in balances when closing versus opening a channel. The sender questions whether it would be possible to identify the output belonging to a particular node if it is later used as input for a non-private channel opening. They also wonder if it would appear the same if the same user opens a new channel to that node.When opening and closing channels on the Lightning Network, 2 of 2 multisig bitcoin addresses are involved. The discussion raises two questions: Can someone analyzing the transaction details during channel opening or closing determine the lightning node it belongs to? And can someone determine which output from the 2 of 2 multisig belongs to whom if there are balance differences when closing versus opening?The poster of the email frequently connects random people to their lightning node using private channels. They sometimes open private channels to the lightning network and make payments to themselves in one of their other channels before closing. Depending on the answers to the aforementioned questions, the Lightning Network could be utilized as a payjoin network, mixing the poster's coin history with users of their nodes and the nodes they open and close channels to. The poster wonders if they could mix their bitcoin through such activity of opening and closing private channels to random nodes and considers the possibility of using a reverse submarine swap before closing.Overall, the email conversation explores the privacy challenges associated with lightning and discusses potential solutions to enhance privacy. The discussion covers identifying the node that funded a lightning channel, determining the owner of channel close outputs, and the possibility of mixing bitcoin through opening and closing private channels.
Updated on: 2023-07-31T23:26:04.187267+00:00