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nostr-bot on Nostr: ⚡📰 Underrated privacy tools on Lightning We are seeing many critics about LN not ...

⚡📰 Underrated privacy tools on Lightning

We are seeing many critics about LN not being private, but mostly are coming from people that never dig deep into using LN at its fully potential, they are were just scratching the surface, using just a Phoenix wallet or maybe another one.

Did you even hear about these terms?

Glossary:In this guide I will use different acronyms for Lightning Service Provider (LnSP) and Liquidity Service Provider (LiSP), to not have too much confusion between them. A LnSP can be also a LiSP.

For all those node runners out there, if you want to became a good "uncle Jim" for friends and family or even for local merchants, be their local good LnSP helping them with more tools and services. This could be a real game changer and a good business around your LN node, charging (valuable) fees in sats. In the future not many people will be able to run proper public LN nodes and this is how you can help them. Helping them you help yourself (and not the banksters).

Let's consider you are a small node runner, with a public (announced) LN node, for small routing, for your family and few friends. And you want to provide also some additional privacy layers for your own use of LN and for your family/friends.

So you run a public node, well connected, well maintained, with some good routes and good liquidity. Is even possible that you run it for a small shop or not, it doesn't really matter. This node could be just a "front-run node", a "public face decoy", viewed just as any routing node. Can be linked to a real identity or not, as you wish. Can be hosted at home on a Umbrel/Start9/Raspiblitz/MiniBolt/etc node machine or on a VPS with a public IP. It doesn't really matter, in the end is just a decoy node.

What "client wallets" you can use with this node (I mean connected with some private (unannounced) channels, practically using it your own private LnSP - lightning service provider):

These self-custodial nodes are the perfect way to use with multiple LnSP and manage your own liquidity as you wish adding more privacy.

Your public node can open private channels towards these "private" mobile nodes, using wrapped invoices and 0-conf channels (not broadcast the onchain tx). Are the perfect way to onboard or start with a new mobile LN node, without requiring any funds in these mobile nodes.

How does it work?

You can see more options for this API inbLIP-52andbLIP-51, that currently is used inZeus calls API.

How to open JiT channels?

Wrapped invoices are invoices with extra layers around them. In this instance, the LnSP will wrap an invoice generated from your node. The wrapped invoice will appear as if it is generated by the nSP.

In the LSP node must be activated the API call for:

This has two benefits:

Wrapped invoices uses the same preimage hash as the original invoice. This means that the LSP can't settle the payment without the final receiver completing the payment, so the LSP can't run away with the user's funds.

Be sure to keep ZEUS open when receiving payment as the LSP cannot settle payments on your behalf when you're offline.

This could be used as a decoy LN address, not using your own private domain for a public LN address (donations, zaps, tips, public payments etc).

Sometimes you do not want to use a private domain linked to your real identity and your node in order to receive sats over LN. You can still use those private LN addresses with your own nodes in a more restricted use case (private business, family and friends payments etc) and not being necessary to publish them online.I explained more about LN address types in this guide.

Zeus is using Zaplocker method for its@zeuspay.com type of LN Addresses. Read more about it here:https://docs.zeusln.app/lightning-address/intro/. Zeus is using "on-hold invoices" for its LN Address and will forward the sats once your Zeus is online (redeem).

Blixt is usingLightning Boxmethod for its@blixtwallet.com type of LN Address. Blixt is not using "on-hold invoices", is just forwarding the payment to your Blixt mobile node, if is online, is acting only as a trusted LN Address server. If your Blixt node is not online the payment to your LN address will be rejected, so you must keep your Blixt on "persistent mode " in order to be able to receive through your LN address. Here is a demo video how to setup a LN address in Blixt:



Yes, you hear it well... NO TRACE on onchain txs. A "0-conf channel" is a not broadcast tx, a channel opened with A TRUSTED PEER that is never confirmed onchain. You can practically keep it like that forever or use"lncli abandonchannel"when you want to close it. So you could transact over LN without leaving any trace onchain. If you open a well size of that channel you literally can pass through "almost infinite" sats, back and forth.

These 0-conf channels are known ONLY between your own LSP node and your mobile private node. And by using "wrapped invoices" you are not even revealing the edge nodeID destination to the payer.

Yes, many mobile users are using random public nodes to connect and open shity channels with Tor only nodes, but then they have failed payments to destinations because their peers are not good LSPs.

As a private mobile node, you do not need many channels open with random nodes. If you have only 2 max 3 channels with good LSPs (your own public node + 1 or 2 others as backup) is more than enough for your personal use for payments.

As your own LSP, with your public "decoy" node you must have good liquidity and public routes to be able to provide successful routes from these private nodes. So keep well maintained your public node.

Keep in mind:
With these private mobile nodes, when you create an invoice you have 2 options:

Let's consider you are a well known public LiSP, selling inbound channels to multiple node runners, public or private. And I am talking to you guys:@rizful_com(Megalith), LNServer, LNbig, Blocktank,@1sats(FlashSats),@Lightning_Lavkaand many others out there that are private LSP (and are not well known).

These LSP could offer these services:

All these could make an incredible easy onboarding experience for new users onto LN.

I hope this guide will make you think and dig deeper into LN and help you create more solutions for new users. There are so many possibilities to do wonderful things with LN that many people don't even know about them. We are barely scratching the surface now.

HAPPY LIGHTNING!

By @DarthCoin (3116 sats, 17 zappers) | [Stacker News](https://stacker.news/items/909079/r/botlab)
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