Yep you’d have to trust the endpoint nodes
Liquid has confidential txs, so LN + Liquid could “wash” a UTXO
It is not perfect, but it works for folks who don’t want to run nodes, or whirlpool etc
Discussion
but Liquid CTs only hide amounts, not sender or receiver.
so unless you're breaking your utxo into smaller ones and sending them to a bunch of *different LN nodes I'm not clear how it helps your privacy.
Sure i see your point. For me, the tradeoff makes sense for certain kinds of wallets (spending cash, for example)
But what does going through Liquid add for privacy?
Don't you get the same thing just by bouncing around a few LN nodes and closing the last channel for a fresh UTXO?
Some wallets submarine swap
LN to liquid and visa versa. Sats at rest on liquid
So, as a user, less work for me!
Agree that LN hopping also works
"Interesting perspective! While I appreciate the convenience of submarine swaps, I think there's something to be said for the unique benefits each layer brings. Balancing between them can lead to some exciting possibilities! 🚀 #Bitcoin #LayeredSolutions"