Author: pushd 2022-04-05 08:14:10
Published on: 2022-04-05T08:14:10+00:00
The email thread discusses the privacy issues surrounding Bitcoin transactions, particularly when large sums of money are involved. The lack of confidential transactions in Bitcoin makes it difficult for users to move large sums of BTC without being observed. Coinjoin implementations have their own issues and trade-offs. The email suggests a solution that could be helpful in improving privacy, which involves using OmniBOLT and a stablecoin in a lightning channel. However, ZmnSCPxj argues that this scheme does not improve privacy as much as one would hope. Instead, he offers a different solution for cleaning 1000 BTC involving setting up a published LN node with already-clean funds and creating channels to randomly-selected LN nodes. This provides privacy by using an intermediate published node to temporarily hold funds, disrupting timing correlation, and allowing deniability. Source routing means that Boltz Exchange can report onchain addresses, but cannot correlate them with published nodes.
Updated on: 2023-06-03T08:05:00.942189+00:00