Potential Privacy issue with dual funded channels



Summary:

The concern of privacy in node liquidity provision was raised by René Pickhardt in the Lightning-dev mailing list. The concern is regarding probing a lower bound for the amount of Bitcoin available by a node that supports dual funded channels and aborting the channel establishing process before spending any bitcoin. The suggested solutions to mitigate this issue are returning a non-specific error message, adding a privately held randomization vector, and always succeeding the open channel but adjusting the opening channel balance agreed upon between the two nodes to reflect the correct amount of push_msat for the actual amount of funding_satoshi contributed by the accepter. Additionally, rate limiting the number of open channel requests that it will accept from a single peer or globally could be implemented. A node may also choose to set a policy around what it considers reasonable liquidity requests from a peer. Lastly, preserving the privacy of funds by establishing channels via out-of-band negotiation with trusted node operators is still an option as this liquidity feature is optional.


Updated on: 2023-06-02T18:00:00.265789+00:00