But my question was mostly just technical - to better understand these things. So far I haven't parted with a single SAT yet. I don't trade or anything like that.
Yes the trail breaks when you transfer Munn to Speed via LN because it's happening offline and only who control the entry as well as exit nodes can link that if they want to and it is almost impossible via chain analysis to link back the transfer with KYCed address unless you reuse the address again to link with any KYCed funds again.
I have following questions about your statement.
1. How exactly Muun wallet able to send Bitcoin on LN in offline manner? Unless i missed it, their website[1] and blog[2] doesn't mention such feature.
2. What do you mean by entry and exit node? LN whitepaper[3] have exactly 0 mention of "entry node" and "exit node".
[1]
https://github.com/muun[2]
https://blog.muun.com/[3]
https://lightning.network/lightning-network-paper.pdf1. Perhaps, I should have used the term Off-chain not offline that created the confusion in the first place.
2. I used the term we generally use for TOR, LN uses the onion routing too so I used the same analogy because that's how I remember these things so maybe those are wrong and I should have replied extensively instead of simple terms.
My knowledge about bitcoin and it's technical knowledge is limited to bitcointalk only not go to an extent of making my research paper, so every time if I have a query I simply refer
The Lightning Network FAQ and in this case I used
Are Lightning Network payments more anonymous than on-chain transactions?Yes, Lightning Network payments are more anonymous. They use
onion routing. In short, when a payment is being routed, an intermediary node knows only the previous and the next node in the path. It is impossible to tell who initiated the payment and what the final destination is.
So when funds transferred from Munn to another then Sender Node that facilitate the open channel initiate the transfer and the funds hops between intermediary nodes before reaching the receiver and every node only has the data of where funds are coming from and where the next destination is going to be so if someone wants to trace this then they should have access to all the nodes where funds are being routed.
And that's what I said
almost impossible.