Introducing Layers' Lightning Network Node Audit:

Do you run a Lightning Node?
  • How does the rest of the network see your Lightning Node and its data?
  • How are you accounting for the capital you have deployed onto the Lightning Network?
  • What sort of research can you perform on other nodes on the network?

In the wake of the $3 Billion+ FTX fraud, the value of audit services, financial controls, and reporting has never been greater.  And the mantra of ‘Verify, Don’t Trust’ should be applied to capital deployed on the Lightning Network.  
In this context, Layers (formerly Exponential Layers) has introduced new functionality to provide third party, deterministic audit reporting on any node on the Lightning Network.
Combined with specific and private transaction data from a node, Layers’ network audit data provides verifiable upper bounds on the public capital deployed to a node (and can be accounted for on an entity’s balance sheet).

Do you run a Lightning Node? Or are you interested in verifying any node’s activity through a period? Sign up for free to build your first two node audit reports here.
More to come on this topic - follow @Exp_Layers for additional reports and details, and please get in touch if you’d like to chat in more detail.
Here's the Tweet from Layers that kicked off the Twitter thread where this was announced:
Introducing Layers' Lightning Network Node Audit:
Do you run a Lightning Node? A release🧵👇
What if someone doesn't want their node to be audited? What measures can an operator take to thwart analysis tools like this?
As of now, all LN public channel opens and closes are broadcast to the network, and with the proper aggregation and data collection this data is all visible.
Transaction level data, forwards, and the balances within a channel are all private and known only to the node operator.
The Lightning Network therefore combines the best of auditability back to the Bitcoin blockchain, and privacy with respect to transaction data.
More details to come this week in a detailed write up...