EU Says Bitcoin Lightning Network and Other L2 Solutions Are “Data Obfuscation” Technologies That Could Be Abused by Criminals

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Cointime2024/06/11 12:02

By:Cointime

The European Union's Internal Security Innovation Center (a "collaborative network of innovation laboratories" from EU member states) has released a report stating that in addition to technologies such as Mimblewimble, zero-knowledge (zk) proofs, token mixers, and privacy coins such as Monero and Zcash, "Layer 2 solutions such as the Lightning Network may also be abused by criminals." The report states that the Lightning Network's "two-party multi-signature payment channel does not broadcast all transactions to the blockchain, but only broadcasts the opening and closing of the channel," and adds that it and other Layer 2 solutions may pose "problems for law enforcement investigations."

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