Author: ZmnSCPxj 2022-04-04 08:23:45
Published on: 2022-04-04T08:23:45+00:00
The context discusses the factors that affect privacy when it comes to large sums of money in Bitcoin. The author mentions that Bitcoin lacks confidential transactions to hide amounts, making it difficult for users to move large sums of BTC without being observed. Coinjoin implementations have their own issues and trade-offs, and big amounts will still be a problem. The author suggests using a non-Bitcoin asset like a stablecoin which can be used in any project that supports Omni BOLT assets, but this reduces liquidity and increases the likelihood of Alice tracking where funds are moved. The author provides an alternative solution for improving privacy which involves setting up a published LN node with already-clean funds or cleaning a small amount of BTC using existing CoinJoin methods. Then, creating channel(s) to randomly-selected LN nodes from a throwaway LN node using dirty BTC. Sending amounts from the throwaway node to the published LN node and later sending from the published LN node to Boltz Exchange offchain-to-onchain swap to get funds back on-chain and more incoming capacity to the published LN node. The author claims that this provides privacy by disrupting timing correlation and providing deniability to the published node while also protecting the user's on-chain address.
Updated on: 2023-06-03T08:04:32.357741+00:00