Diference Between Lighting Network Privacy and Zcash privacy Layer 1


Hello .

What is the Diference Between Lighting Network bringing Privacy to Bitcoin and Zcash that brings privacy Layer 1

Layer 1 privacy VS other layers


I don’t know what you mean by “Lightning bringing Privacy to Bitcoin”? Lighting isn’t very private on its own right now. I’m just going to copy/pasta some info from Ian Miers and Matthew Greens work:

Payment channel protocols, such as the Lightning Network, address the scale and latency issues by using the blockchain only to escrow funds and resolve disputes. Other than that, users exchange what are essentially blockchain-enforced IOUs, which aren’t recorded on the blockchain unless there is a dispute.

The problem is these IOUs form a unique identifier which can be used to track Alice much like a cookie. Anyone who observes these (e.g. the Tor exit node) will not a priori know who the identifier belongs to—her actual identity is still protected by the anonymity service—but they can still observe page views and patterns because multiple payments on a payment channel are inherently linkable.

Channels are not Private: opening and closure leaves a record identifying the customer, merchant, and the initial and final split of funds.

In Bitcoin, funding a channel is not private: there is a record of who you opened the channel with, the amount, and what it closed for. BOLT alone does not solve this problem—it only makes payments on the same channel unlinkable to each other. Worse, if a merchant or third party can force an abort in the BOLT protocol, then they can identify which channel you are using. They can only do this once, so multiple payments on the same channel cannot be linked, but if you did not open the channel anonymously, then that (aborted) payment can be linked to you.

To avoid this, you need anonymous funds to create the channel. Indeed, the privacy requirements for funding a channel are as high as those for normal payments. So you want as strong privacy as you would for normal payments. And Zcash is the best way to get strongly private funds.