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RE: Bitcoin Lightning Network LAUNCHED. Programmer explains.
The other question I have is how does SegWit help authority track transactions?
The other question I have is how does SegWit help authority track transactions?
By keeping blocks small, making transactions cost more, making people do less transactions on the actual blockchain; the less transactions that occur on the blockchain, the less difficult it is to keep track of who is doing the transaction... sheer quantity goes down. If you only have one receiving Bitcoin address, and you get that at Coinbase, that address is tracked. Anything you do on the LN from that point on can also be tracked, as LN keeps track of your original payment address.
You don't have to use centralized exchanges though. Coinbase and many other exchanges violate the decentralization principles of Satoshi Nakamoto.
If all transactions go through 1 address on a LN node, then how do you differentiate identities using the same address? If the address that it eventually ends up on is on another hardware wallet, how are they passing along KYC info? I just don't see that anywhere in the code.
LN says that nodes can only see jumps from the previous node to the next node and don't know if it is the origin or destination unless they send or open and realize they are the recipient.