Bitcoin Private Community

BTCP and Lightning Network, is this new scaling technology welcome in a private crypto

August 16, 2018

Basically lightning allows instant anonymous transactions off chain to be performed but still be secured by the blockchain. Its a solution to the large scaling issue faced by bitcoin where increased transaction fees and times can grind the network to a standstill.

But the question is…for a private cryptocurrency wouldn’t this create an immediate privacy concern? If i’m not using the main blockchain and my Z addresses how is this private for me?

Well lightning network can also use encryption and intermediary nodes that relay transactions without knowing their origin or destination. This onion style routing would almost fall under the obfuscation category but if the immediate network node is relaying without knowledge of the source or destination but the two parties are aware of each other i think the privacy criteria is being met.

This however isn’t a perfect method of privacy is in theory multiple nodes colluding together could take fragments of the transactions and piece them together. Its one of those theoretical possibilities but with any privacy technology even theoretical possibilities are vulnerabilities until the possibility is reduced to 0.0%

But we don’t need to settle for that because a Dr Ayo Akinyele has taken the model of LN but worked towards a solution to the privacy concerns. The easiest and most obvious method to address it is of course ZK (zero knowledge) technologies to shield the transactions themselves.

The new adaptation is called BOLT and uses blind signatures and zero knowledge to hide the transactions, sender,receiver and the balances sent through the network. This would create a larger transaction of course but when you are only limited by bandwidth not block size is this really an issue at all?

So to summarise could lightning network be a welcome addition to BTCP…sure but BOLT would be the private version of LN that would better fit the BTCP mission.

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