Oddbean new post about login | logout Phoenix has become the go-to wallet for me and many others. The new splicing feature makes things a lot easier to manage, but i am a little concerned that 'only one channel ever' may result in a much bigger privacy risk. Lightning as-is does have better sender privacy than receiver privacy, but, in this one channel model, if a snooper finds it once, they'll unambiguously (pre-taproot) be able to keep track of it through splices. The more basic point is not dependent on splicing: Phoenix being your only channel counterparty is another big privacy tradeoff.
Have you tried @ZEUS embedded node w/ Olympus LSP?
No, seems interesting.
It’s really good. Startup times are a little slow but it’s running LND on device, and does all pathfinding on device as well. And if you have channels to the LSP, all generated invoices by default (but can be disabled) are wrapped to provide better privacy by not exposing your nodes pub key to the payer. And there’s lots more coming. Evan is cooking up some next level stuff.
In Blixt you can open multiple channels to anyone. Tradeoff is channel management which isn't the easiest thing but with services like Boltz its actually pretty manageable
Well, not only blixt; this was the default for LN wallets to begin with and i guess several still support it (electrum springs to mind), but, as you say, it's problematic. LN payments have become part of my everyday life here in ES, so i have gravitated to the most reliable option where I still have control of my money and, today, that's Phoenix, but I'm certainly interested to hear others' experiences.
I have heard people mention the possibility of combining splices and conjoins. With taproot you could increase your channel privacy onchain if some of the inputs and outputs to the splice were not controlled by your wallet or LSP. If those coinjoin inputs paid some of the common tx fees for the splice it would even be economically beneficial for the channel parties to facilitate it. Do you think there could be some useful mashup between LSPs and joinmarkets via splices?
Zero spender privacy *with phoenix*, yes - that's the tradeoff. Re: swaps, has that definitely changed? I recently did a splice in and looked at the 'tech details'. There is definitely still a swap, and looking at the tx I didn't see an atomic swap style witness ... are they still fully custodial for that even now? Big chance I misunderstood it, though.
🥲 is there any self-custody LN wallet which is easy to use (no channel management) and protects sender and receiver privacy? Or do I simply need to wait for a few months longer for wrapped invoices, blinded paths etc?