👉 Bitcoin Optech #164

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a feature where an LN channel is backed by a P2TR UTXO, i.e. a P2TR channel, which increases the onchain privacy of unpublished channels.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.

  • Bitcoin Core 22.0rc3
  • Bitcoin Core 0.21.2rc2
  • Notable code and documentation changes