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5

The onion routing in Lightning is based on the Sphinx Mix Format described in this paper. The situation is different from Tor We don't have entry and exit nodes in Lightning as all nodes are inside the Network. In Tor a new connection along the path is as easy as creating a TCP socket between the tor routing nodes. In Lightning a payment channel with ...


3

"Privacy loves company." The key is to understand why a coinjoin transaction provides privacy. It is not a magical veil that shields your financial history, it is just a tool that helps obfuscate a particular output's history. This obfuscation is only achieved by including many inputs in the coinjoin transaction, such that each input could be the source of ...


3

The only advantages of doing a coinjoin is that the recipient of your funds cannot see the source of your funds (and the sender of funds to you cannot see your future transactions). If you do a coinjoin with only your funds, any branch they follow along this trail will lead to a source (or destination) of your funds. Every source you include in the coinjoin ...


2

Doing coinjoin with only your coins is possible, it's called fake coinjoin. Samourai Wallet has one implementation, called Stonewall, I have written fake-coinjoin.sh for Bitcoin Core. But such fake coinjoin by itself does not give you much privacy, because of common-input-ownership heuristic. So, by default chain analysis companies assume that all the inputs ...


2

How can [Bitcoin] ...achieve mass usage status as payment method? I suspect much research has been done in this area. Privacy is an important obstacle but not the only one. Motivations and Barriers for End-User Adoption of Bitcoin as Digital Currency. Presthus and O'Malley, 2017 The largest group, the non-users, state that they are awaiting for others ...


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Bitcoins themselves are fungible, and addresses are designed to be for one-time-use only. It really comes down to how you use it, and it is entirely possible to transact using Bitcoin in a private manner. If the user is naive and has poor practices, then it is possible to track their financial history. But if the user is smart and uses best practices (no ...


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Community, what is the current state of privacy related BIPs? CoinJoin related ones: Adam Gibson's SNICKER draft, which permits a simple unidirectional CoinJoin construction. BIP 79, Bustapay, a standard for CoinJoined payments. P2P improvements: BIP 156, Dandelion: routing newly broadcast transactions a few hops before broadcasting. Draft for BIP 324: ...


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