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Paying Yourself? Self-Payments Could Be a Key to Lightning Privacy

The Lightning Network is best known for its fast and cheap payments. But the Layer 2 protocol could also offer more privacy than on-chain payments, since transactions are not published on Bitcoin’s blockchain, blockchain analysis is largely impossible.

The Lightning Network does present its own privacy risks, however. Payments are routed over a network of users, and nothing stops spies from participating in this process of forwarding transactions while monitoring the flow of funds. On the Lightning Network, blockchain analysis can be substituted for network analysis.

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