Cross-Layer Deanonymization Methods in the Lightning Protocol

Authors: M Romiti, F Victor, P Moreno-Sanchez

Venue: FC (2021)

Abstract: Bitcoin (BTC) pseudonyms (layer 1) can effectively be deanonymized using heuristic clustering techniques. However, while performing transactions off-chain (layer 2) in the Lightning Network (LN) seems to enhance privacy, a systematic analysis of the anonymity and privacy leakages due to the interaction between the two layers is missing. We present (Please, find the full version of this paper with appendix at https://arxiv. org/abs/2007.00764.) clustering heuristics that group BTC addresses, based on their

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