👉 Bitcoin Optech #164
- describes a tool for decoding and modifying PSBTs
- links to a blog and proof-of-concept implementation of an eltoo-based LN payment channel
- includes eleventh post in the series about preparing for taproot: LN with taproot:
Taproot, by using schnorr signatures, allows for n-of-n to look exactly the same as 1-of-1. With some work, even k-of-n will also look the same as 1-of-1 (and n-of-n). We can then propose a feature where an LN channel is backed by a P2TR UTXO, i.e. a P2TR channel, which increases the onchain privacy of unpublished channels.
This (rather small) privacy boost also helps published channels as well. Published channels are only gossiped for as long as they are open, so somebody trying to look for published channels will not be able to learn about historical channels. If a surveillant wants to see every published channel, it has to store all that data itself and cannot rely on any kind of “archival” node.