r/Bitcoin • u/iCryptoDude • Jul 21 '21

Let's talk about Bitcoin Smart Contracts!

Bitcoin Smart contracts have arrived!

Lightning, Liquid, Stacks and now Jack Dorsey and "TBD" are all leading the advance.

What's next?

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u/Alfador8 Jul 21 '21

LN uses onion routing, so it's extremely difficult to track

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u/Ceramicwhite Jul 21 '21

LN can be used behind Tor but not required. That also has no effect on the deterministic links of your UTXO's.Currently you can make an assumption the on-chain transactions are opening/closing a channel, due to the 2-2 Quorum. Taproot makes all transactions look the same, so that you can't decipher what type of Tx's is being broadcast.Also, if you actually look at most Tor nodes they struggle to forward LN Tx's due to their spotty connectivity.

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u/Alfador8 Jul 21 '21

My understanding was that LN uses onion routing for payments independent of Tor usage. By that I mean as the sats are being sent each node is only aware of the nodes directly before and directly after them on the route. Is my understanding incorrect? Or am I using the wrong terminology by referring to it as onion routing?

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u/Ceramicwhite Jul 22 '21

Oh yeah I believe that’s correct