Semi-hidden Channel: Research on the Application of Privacy Protection Channel Based on Bitcoin Lightning Network
摘要
In the Bitcoin Lightning Network (LN), traditional channel types have only public and private channels, whereas private channels do not join the Lightning Network and cannot participate in multi-hop payments, which limits the number of available channels in the network. Therefore, these channel types have some shortcomings in terms of privacy and flexibility. To address these issues, this paper introduces a new channel type, the Semi-Hidden Channel, whose balance is represented by a range value, and uses zero-knowledge proof (ZKP) technology to safeguard the privacy of channel users. First, This work reduces the complexity of applying Merkle proofs in zk-SNARKs through the reconstruction of the Merkle tree and the use of the MiMC7 hash algorithm. It uses a mortgage mechanism specifically for this channel type to prevent malicious behavior and sets the conditions for using Semi-Hidden Channels to reduce their impact on the network’s payment success rate. Furthermore, through statistical analysis of UTXO Aging data, it is proven that Funding Transactions for this channel type can remain hidden on the blockchain for at least 40,000 blocks, and a threat model was constructed to demonstrate good privacy protection even after being attacked for 40,000 blocks. Finally, this paper proposes some privacy protection strategies for channel closure to improve its privacy. By introducing semi-hidden channels, the flexibility of Lightning Network can be improved, enabling them to meet the diverse needs of users and potentially expanding the existing scale of Lightning Network, making them more practical.