Lightning Network
Discussion
Custodial Lightning and LSPs don't give you privacy from third parties. How a vast majority use the network because of it's complexity.
> LSPs don't give you privacy from third parties
They do. LSPs cannot identify the sender, the recipient, the amount sent, or any of their users' base layer utxos. That's pretty good.
I guess it depends on a few things. LSPs can usually identify either the sender *or* receiver + amount. If both users are using the same LSP (or colluding LSPs) they can identify both sender *and* receiver + amount.
https://phoenix.acinq.co/faq#how-private-are-my-payments-on-phoenix