Published on: 2022-04-05T12:28:35+00:00
In a conversation about source routing and Boltz Exchange's ability to report onchain addresses, the speaker suggests that Boltz may keep records of onchain addresses but cannot correlate them with the user's published node or IP address. To maintain anonymity, the speaker recommends using an onion link, which prevents correlation between onchain addresses and IP addresses. Moreover, multiple swaps through Boltz cannot be correlated with each other, further enhancing anonymity. The speaker advises imitating how `clboss` formats JSON requests to improve the anonymity set.The email thread delves into the privacy concerns surrounding Bitcoin transactions, particularly when large sums of money are involved. The absence of confidential transactions in Bitcoin makes it challenging for users to move substantial amounts of BTC without detection. While Coinjoin implementations exist, they have their own drawbacks and trade-offs. The email proposes a potential solution to enhance privacy involving OmniBOLT and a stablecoin in a lightning channel. However, ZmnSCPxj argues that this approach does not provide as much privacy as desired. Instead, ZmnSCPxj offers an alternative method for cleaning 1000 BTC, which entails setting up a published Lightning Network (LN) node with already-clean funds and creating channels to randomly-selected LN nodes. This strategy ensures privacy by utilizing an intermediate published node to temporarily hold funds, disrupting timing correlation, and enabling deniability. Source routing enables Boltz Exchange to report onchain addresses but prevents correlation with published nodes.The context explores various factors impacting privacy in Bitcoin transactions with significant amounts of money, including liquidity, anonymity set, amounts, type of addresses/scripts, block, locktime, and version. The lack of confidential transactions in Bitcoin poses a challenge for users looking to move large sums without attracting attention. Although Coinjoin implementations exist, they come with their own issues. The author suggests a potential solution involving the use of a non-Bitcoin asset like a stablecoin in a lightning channel supported by Omni BOLT. However, this approach reduces liquidity and increases the risk of tracking by Alice. The author proposes an alternative method for improving privacy, which involves setting up a published LN node with already-clean funds or cleaning a small amount of BTC using existing CoinJoin methods. By creating channels to randomly-selected LN nodes from a throwaway LN node using dirty BTC, the user can disrupt timing correlation and ensure deniability for the published node. This strategy also safeguards the user's on-chain address.While the email thread explores potential solutions to enhance privacy in Bitcoin transactions involving large sums of money, such as the use of stablecoins and Lightning Network nodes, further exploration is needed to determine the effectiveness of these approaches, particularly when using Omni BOLT and other improvements in the setup.
Updated on: 2023-08-01T00:11:32.695768+00:00