Having used robosats with withdrawals to own node in the past without proxy invoices, would it be advisable to nuke the node and start again or just start using proxy invoices from now on?
Pretty good privacy flow that covers *most* average Bitcoin use cases 👇
BUY 🤖 - For use when you want to obtain sats that are not tied to your personal identity #noKYConly
➡️ Robosats Trade > Use proxy invoice when withdrawing to own your node > Accumulate/spend from own node.
SPEND 🪙 - For use when you want to use Bitcoin as money
➡️ Not too much to say here, LN has good base level sender privacy when using your own node.
STORE 🧊 - For use when your node balance gets close to channel capacity, or to a value that you want to move to cold storage
➡️ Carry out atomic swap on something like https://boltz.exchange (use the .onion address) to go from your Lightning channel balance, straight to an address controlled by your hardware wallet. Boltz has a 0.5% service fee, plus you'll of course need to pay miner fees, which are negligible at the time of writing.
NOTES 📔
🟧 Your purchase sizes are limited by your inbound liquidity. Plan ahead!
🟧 If you don't want to or can't run a node, swap out that step for a nostr:npub1xnf02f60r9v0e5kty33a404dm79zr7z2eepyrk5gsq3m7pwvsz2sazlpr5 Olympus channel with a lightweight node on your phone. I recommend Zeus because spends from there are more private than in Phoenix due to client side path finding
🟧 When using the proxy invoice feature in Robosats, you may need to adjust routing fee and proxy provider allowances slightly
Happy to take questions or comments. Put down the CashApp and give it a go anon, I dare you!
Discussion
For maximum privacy, yes. Just make sure you fund the new node with different UTXOs than the ones left over from the existing one.
why receive as a lightning payment when you can receive onchain directly from robosat trade and no need to use boltz atomic swap. Depends on coordinator fees sometimes cheaper than boltz charge
If your immediate goal is to get a UTXO for longer term storage then sure. The reason I say LN first is because of the default level sender privacy.
And it allows you to accumulate a larger balance off chain, before converting into a UTXO.
UTXOs <1m may well become economically unviable in the future
Utxos <1m may also be combined when forming a txn and one can combine dust outputs together if they all belong to one entity if possible.
Why so much myth about” will be economically unviable”.
Just like I can combine a penny with a dime or a quarter and then add that sum and spend it. I can do the same with utxo and burn some of that dust on miner fees. Or use that utxo dust as a Payjoin when receiving.
Its not a myth. Small utxos become economically useless in high fee environments. Of course you can combine them, but doing so may cost more in fees than the value of the coins themselves.
Sure, but when I combine or consolidate I will use/ burn those dust utxos into fees instead, sure it cost more but it’s spendable. goal is to get rid of the dust as part of miner fees. I still don’t buy this bullshit that one need to have 1mil size utxo or bigger now as a minimum total bullshit.
It's not really 'spendable' though is it? You're losing more than the value of the coin itself. That's the entire point.
Even if you combine them, you might end up paying more for adding another utxo to the transaction than what that particular utxo is worth.
In meat space it's not more expensive to add 10 $1 bills together than spending 1 $10 dollar bill.
But in bitcoin land adding a new utxo increases the size of the transaction therefore increasing the total fees for that transaction. There will be a fee level at which certain utxos will be more expensive to send even if added to a transaction with more utxos
FWIW You’re making an argument against yourself
Thanks
Some mobile LN wallets generate a random node id on each receive -- and are compatible with 🤖Robosats.
E.g. Valet https://github.com/standardsats/valet