diff --git a/docs/_pages/docs/01-best-practices/03-proxy-wallets.md b/docs/_pages/docs/01-best-practices/03-proxy-wallets.md index a80d7a68..63334726 100644 --- a/docs/_pages/docs/01-best-practices/03-proxy-wallets.md +++ b/docs/_pages/docs/01-best-practices/03-proxy-wallets.md @@ -8,4 +8,46 @@ sidebar: src: "_pages/docs/01-best-practices/03-proxy-wallets.md" --- -{% include wip %} \ No newline at end of file +Receiving on the lightning network can reveal personal information +so it's important to keep a few things in mind. + +If your node has public channels, +any invoices you make will reveal the UTXOs that were used to open those channels. +If those UTXOs come from a KYC exchange, +then anyone with access to the exchange's database +will be able to link your lightning invoices to you identity. +Even if you use coinjoined UTXOs to open your channels, +or you bootstrap your node exclusively by paying for inbound channels, +invoices are still potentially compromising +since they allow an attacker to correlate different +payments to know that they are going same entity (you). +Moreover, if you close those channels, +the resulting UTXOs will continue to be tied to those +transactions. +If your node only has unannounced channels +it will be harder to find your onchain UTXOs +but you will still have the problem of +payment correlation. + +For small amounts, using a custodial proxy wallet is a reasonable way to +improve your privacy when receiving on the lightning network. +Receiving to a good custodial wallet will only reveal the custodian's UTXO's. +To learn information about you, +the payer of your invoices would have to collude with the wallet custodian. + +A non-custodial alternative is to use an lnproxy server +to wrap invoices to your own node and receive to the wrapped invoices instead. +Simply generate an invoice to your node and paste it into an lnproxy web interface. +The lnproxy server will return a "wrapped" invoice to the lnproxy server's lightning node. +The wrapped invoice should have the same +description and payment hash as the one you pasted in, +and a slightly higher amount to account for routing. +You should verify this using an invoice decoder like https://lightningdecoder.com . +If the payment hashes match, you can be certain that the lnproxy node +will not be able to steal your funds. +Then, simply use the wrapped invoice anywhere you +would have used your original invoice. +To learn any information about you from a wrapped invoice, +an attacker would have to collude with the lnproxy server you used. + +{% include wip %}