refunds -- was Re: BOLT 11, real time micro payments, and route redundancy



Summary:

Rusty Russell, a contributor to Lightning Network, commented on the limitations of privacy with refund requests. He stated that it is suboptimal for privacy and proposed a more complex scheme using round-trip payments. However, this scheme does not work as each encrypted hop contains the amount it expects to be sent. The solution is to include a smaller return onion to allow for proper refunds, which Rusty added to the brainstorming section in the Lightning Network RFC. Andy Schroder asked how this would work if the route no longer has capacity or goes down by the time the payee sends the refund back to the payer and if the payer would know the best route to build an onion for if they do not know the refund amount.


Updated on: 2023-05-24T21:27:50.176016+00:00