100 sats \ 3 replies \ @Signal312 6 Jun \ on: How I spend my coins privately with Coinjoin and Lightning bitcoin
Thanks for this, I'm bookmarking it to look at more carefully once I understand a bit more about coinjoins. And the rest of it, frankly.
Which steps here cost money? I assume step 3, mix my coins? Any others? About what percentage are you paying for this privacy?
When you say "install LND" - I assume it means this? https://github.com/lightningnetwork/lnd"
If you had to give an overview, would you basically say it is:
- mix your coins
- the mixed UTXO, send to through lightning to another address?
Which steps here cost money?
Lots of steps. The coinjoin costs money due to transaction fes and mixing fees (actually not sure if the kruw coordinator charges fees; Wasabi did when they were running one). It's important that coinjoin's have a cost to discourage attacks from chainalysis firms flooding the mixes.
Transferring the funds from wasabi to LN costs a transaction fee too. I wish there was a way to deposit from a Wasabi mix right into my LN wallet!
Opening the channel again costs a transaction fee. Again, I wish there was a way to open a lightning channel directly from a coinjoin. But that sounds hard.
Transferring the funds over Lightning costs fees too. In fact, it's common on Lightning for large transfers to cost more money in fees than on-chain. The financials of a Lightning channel mean the cost of a transaction is mainly related to the total amount transferred, as channel capacity ties up money.
Closing the channel costs a transaction fee too. And I often donate the 1% or so remaining to charity. But charity is an important part of my faith, so I'm ok with that! You could also say that me doing all this is a charity for others: I frankly am getting more privacy than I really need. But you need everyone getting privacy so the people who *really need it have a k-anonymity set of other people doing what they're doing.
I guess you could say all these steps have a cost for my time. But it's fun to play with cool tech that I don't get to play with at work!
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I wish there was a way to deposit from a Wasabi mix right into my LN wallet!
There's support for this via the RPC interface. Unfortunately not yet via the GUI.
I wish there was a way to open a lightning channel directly from a coinjoin.
This is theoretically possible. But would require quite a bit of coordination, as you'd need to get the other party to sign a commitment transaction with the specific txid of the coinjoin, prior to fully signing the coinjoin. Wasabi could probably do this if code was added to Wasabi itself. But it's not really practical to do right now.
Had lightning instead gone with the original, pre-segwit, idea for channels using SIGHASH_ANYONECANPAY this would be a lot easier.
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When you say "install LND" - I assume it means this? https://github.com/lightningnetwork/lnd"
Oh, yes, I mean that.
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