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The idea of Bitcoin on the Lightning Network being just as private as Monero due to it being challenging to trace is hilarious to me. There is way more to privacy besides not finding the address of the sender, such as: Transaction amounts (ringCT fixes this) Linkability of transactions (ring signatures and stealth addresses fix this) Location leaks (Tor and I2P fix this) Blockchain accessibility (XMR itself fixes this) If Bitcoin maxis would just learn how to threat model properly, then they would know that unless you are using BTC for actions that you want to be public record anyways, then it is a bad idea for most threat models to use BTC. LINDDUN is a good privacy threat modeler that I use and highly recommend. linddun.org/threat-types #Bitcoin #Lightning #Monero
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Largest problem imo is Lightning UX. Harder to use both privately and fully sovereign. Natural outcome is custodians that can spy on them which is what we see for the vast majority of LN users. Another uphill battle: defaults. Blinded paths are not widely adopted and only optional in every wallet I know of that has it. i.e. They just removed tor from Phoenix wallet a few days ago (not that it was private from ACINQ to begin with, but at least you had easily accessible anonymity before). I do think theoretically off-chain is the best privacy, but if the design choice is bad, lacking proper defaults, and it's built on a transparent base, it becomes a minefield that not many users will make it across
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