Author: Tony Giorgio PM 2023-07-27 05:35:20+00:00
Published on: 2023-07-27T05:35:20+00:00
Some bitcoin custodians have implemented the concept of "multiple hops away" for on-chain payments. However, not all of them may have adopted this concept anymore. This approach is similar to coinjoined funds and aims to ensure privacy by adding multiple intermediary nodes between the sender and recipient. The idea is that the more hops there are, the lower the chances of a user being closely connected to any one node in the route. However, there are limitations to this approach, as weak anti-correlation mechanisms make it possible for a user to be closer to one of the nodes without realizing it. Even if the sender attempts to use six hops, if their first hop is part of the blinded route, it compromises the privacy they were trying to achieve. While PTLCs (Payment-Point Lock Contracts) could potentially help address some privacy concerns, timing and amount analysis still pose risks.
Updated on: 2023-08-11T15:55:56.837880+00:00