Jay on Nostr: Privacy has to exist where no one can see what you're doing. Transactions done ...
Privacy has to exist where no one can see what you're doing. Transactions done on-chain have universal visibility, so naturally, transactions done off-chain will have limited visibility, and therefore more privacy.
The general idea is to construct an on-chain transactions such that many transactions compressed into it. Side chains and lightning work on this principle.
Privacy doesn't always have to be trustless. You can gain privacy by getting someone else to do transactions on your behalf. Exchanges and eCash mints work on this principle. The lightning network provides a trustless way to get others to transact on your behalf too: if you send a payment through an intermediate node, you can gain a bit of privacy.
The general idea is to construct an on-chain transactions such that many transactions compressed into it. Side chains and lightning work on this principle.
Privacy doesn't always have to be trustless. You can gain privacy by getting someone else to do transactions on your behalf. Exchanges and eCash mints work on this principle. The lightning network provides a trustless way to get others to transact on your behalf too: if you send a payment through an intermediate node, you can gain a bit of privacy.