Author: Omar Shibli 2019-03-15 19:55:02
Published on: 2019-03-15T19:55:02+00:00
A concern has been raised about the privacy of nodes providing liquidity in dual funded channels on the Lightning Network. A proposal to advertise channel liquidity through modified open_channel messages would allow an attacker to probe a lower bound for the amount of Bitcoin available by a node. One potential solution suggested is to make spamming/probing more expensive, such as requiring the person to open a channel first and then ask the partner to splice something in. However, this would still be able to relatively cheaply abuse the system and result in game theory around fees. Another user suggests using off-chain settlement protocols based on Schnorr signatures to tackle privacy and liquidity issues. The proposed model allows for variety of funding combinations and all transactions can be done offline with a trusted oracle, with optional blinding of data from the oracle's point of view for optimal privacy.
Updated on: 2023-06-02T18:00:20.865602+00:00