Author: Martin Habovštiak 2022-02-01 18:10:45
Published on: 2022-02-01T18:10:45+00:00
The discussion revolves around the idea of keeping description hash for a use case that can enable AOPP-style verification. The scenario envisioned is that the regulation gets so restrictive that regulated custodians are unable to make payments, leading to people developing muscle memory and avoiding paying from exchanges. However, this requires extreme node-level KYC enforcement. While better education can replace it, it surely helps. The slippery slope is a fallacious argument, and the specific regulation only aims at proving that one is not paying someone else, allowing exchanges to avoid registering as banks without tracking people.The discussion also delves into how regulators may get worse in the future with discussions about DOXing the sender of a payment by signing a message in a TLV field. While the only serious discussion proposed making it unlinkable, the recipient would not know which node it was. Additionally, node IDs could be rotated, requiring changing the receiver implementation to accept messages for any known node ID. The “KYC” of a private node ID is meaningless. It assumes that there are protective mechanisms in place to ensure that a “private node” is actually private, but enough gotchas can break down that assumption. Even an operator of a popular public node can connect to themselves and pretend it's some random person routing through them. Ideally, fixing private nodes should be among top priorities.There is no hard and fast rule that no custodian is processing anything except to the user’s private nodes. Invoices and payment reasons are being aggregated in mass, and the discussion centers around how to stop this now except by removing the ability for it to happen. However, making it meaningless is a possibility. Regardless, people need to be educated never to put invoices from others into any KYC wallet. Fixing privacy issues like ID reuse is much more important and productive than removing description.
Updated on: 2023-06-03T07:24:01.025023+00:00