Replying to nitesh

Ok since the coin join implementations are pretty much gone. Here's a privacy technique that could work.

- Get Zeus or Blixt Wallet. Buy inbound via LSP. They open a private Taproot channel.

- Stack sats on lightning.

- When balance is all on your side, close it. It's a Taproot channel so nobody would know it's a channel close.

- move funds to cold storage when fees are low.

- once you think your pubkey has been exposed enough, delete the wallet and start over with a new pubkey.
17
xmrk ₿ ⚡️ 1y ago

But the sender (presumably who sells you btc) must know about your channel. If it is private, you will send him a routing hint.

This could be avoided if you open a parallel public channel to the same LSP.

Also, force closure may reveal that it is a channel. Not sure about the taproot channels in this context.

Finally, at least lnd (so Blixt too, not sure about other implementations) may happily sweep and combine various UTXOs after forced closure, this also leaks some information.

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02
nitesh 1y ago

Routing hint will only contain scid alias. not the channel ID tied to the utxo.

yeah, only a force closure will reveal.

17
xmrk ₿ ⚡️ 1y ago

ok, makes sense. You still reveal the fact that there is private channel between you and LSP, but with taproot channels good luck finding the channel UTXO.

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Hanshan 1y ago

what is the persistence of this information?

assuming no force closures, is the data "gone" after you burn the channel?