Yena's avatar
Yena 3 weeks ago
Is this actually possible with something like lightning? Or can surveillance firms just force close (actively attack somehow) those pesky channels that have been open > 1 year and need to touch the global ledger before Apr 15th

Replies (2)

99% of LN liquidity pools is controlled by CEX and other custodial liquidity providers. It's that easy. All of them join with a money transmitter licence that means sharing data with chainanalytic companies. In that regard Tor is vastly different from the LN. Both are theoretically passively surveillabkr, but due to the centralisation effects (liquidity for routing), LN loses a lot of the properties and while Tor is more of an egalitarian network opening channels is a social selection process.
Yena's avatar
Yena 2 weeks ago
Wow I didn't know it was that bad. So basically even if many lightning nodes were sovereign, and therefore subsets of the network aren't easily mapped, then the large hubs could still "Know Your Channel". Is that the case? But how could it ideally work if we assume all non-KYC lightning nodes over Tor only (or even an ideal mixnet) and users are running their own lightning (not trusting some 3rd party w/ their data) It seems like this still suffers from channel closing attacks/ accidents revealing onchain the net balance.