Potential Privacy issue with dual funded channels



Summary:

During a spec meeting, the topic of dual funded channels and potential game theory with fees was discussed. However, the privacy of the node providing liquidity was not addressed. Though there is no established protocol that supports dual funded channels, one proposal for advertising channel liquidity suggested modifying the 'open_channel' message to include an option for liquidity buy and amount of dual funding requested at channel open. This could allow a lower bound for the amount of BTC available by a node that allows for dual funded channels to be probed through internet traffic. The author suggests making spamming/probing more expensive, possibly through requiring a person to open a channel first and then splice something in, or identifying requests to splice in and allowing the person being probed to fail the channel. As the Lightning network prioritizes strong privacy for its users, the problem with privacy for dual funded channels is worth noting, though a concrete solution has not been proposed.


Updated on: 2023-06-02T17:59:36.156694+00:00