If you do not want to read all the rest here is my TLDR answer: because most of them are just noobs (without good knowledge of networking), followers of influencers promoting Tor only nodes and believe that Tor is the magic wand that fix everything. IT IS NOT. Tor is a false illusion of "privacy" for BTC LN nodes and is useless.
Ok now let's get into this question. With this post I want to make more noobs to think about and take the right decisions.
Why most of bitcoiners run a Tor only BTC LN node ?
Because most of them are using bundle nodes boxes (Umbrel, Start9, Raspiblitz, MyNode etc) that mainly are by default Tor connected to the rest of the internet.
Why they use Tor?
Because is damn easier plug'n'play for a noob that doesn't know what is LAN, WAN, ports, IP, domain, FQDN, HTTP(S), packets, encryption etc you name it... Tor is making their life easier, without having to configure routers, ports, IPs etc. And the influencers are "selling" the idea that "run Tor nodes for your privacy" but not explaining what really is privacy.
Let's say it clearly: INTERNET IS A PUBLIC PLACE ! So if you do not want to expose your private activity, then DON'T DO IT ON INTERNET. Anything you do on internet became PUBLIC.
People nowadays cannot make the difference between PRIVATE and PUBLIC but they still demand privacy in a public place LOL. Is like walking naked on the street and you demand to people not to look at you because is private.
Is it Tor such an ultimate "privacy tool" ?
The fundamental question becomes: How can conscientious individuals maintain their privacy online? If absolute privacy—complete evasion of government data collection—is the goal, then the internet is simply not suitable. While it may be possible to protect information from hackers and corporations, completely avoiding surveillance by large governments is essentially impossible.
Source - Tor and the Illusion of Anonymity - by John Little
As I said before: if you do not want to reveal private parts of your activity, don't do it online! Or at least do it under a pseudonym, another false identity, hide into the crowd that cannot identify or link the REAL you.
Despite its benefits, Tor is not a foolproof solution for online privacy. Here are some reasons why:
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Exit Node Vulnerability The data leaving the Tor network through the exit node is decrypted. If the exit node is malicious or monitored, your traffic can be intercepted and analyzed. While your IP address remains hidden, sensitive information like login credentials or personal data could be exposed if the website you’re visiting doesn’t use HTTPS.
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End-to-End Tracking While Tor hides your IP address, it doesn’t encrypt the data you send to or receive from websites. If you log into a personal account or share identifiable information, your anonymity could be compromised.
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Browser Fingerprinting Tor Browser’s settings are designed to minimize browser fingerprinting, a technique used to identify users based on their browser and device configurations. However, if you modify Tor’s default settings or install additional plugins, you increase your risk of being identified.
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Correlation Attacks Advanced attackers, such as nation-states, can use timing correlation attacks to de-anonymize Tor users. By monitoring entry and exit nodes, they can potentially link your activities to your IP address.
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Malware and Phishing Tor doesn’t protect you from malware, phishing, or malicious websites. Clicking on harmful links or downloading infected files can still compromise your privacy and security.
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Adding more time to response Speed is crucial for BTC LN nodes. Maybe for a BTC only node (not LN) it is OK to sync every 10 min a block, is not a big deal. But for a PUBLIC ROUTING LN node it is crucial to have fastest response. And Tor network is adding huge delays ! That makes your LN node UNRELIABLE FOR ROUTING.
NOTE: we are talking about PUBLIC LN nodes here, not PRIVATE (those that are not doing public routing and are not 24/7 online).
So using a public routing node only behind Tor is totally useless and against the most important thing: routing. You are literally doing more harm than good to the entire Lightning Network because your node will be a bottleneck for all those trying to pass through your shity node a payment.
If you are already a public node, is already known information, so is useless to think you are hiding behind a Tor onion address...
If you really want to not reveal your IP from where your LN ndoe is operating, use a VPN IP, with a Wireguard tunnel towards your LN node machine. That will add a faster route to your node and also full control of the traffic.
You rent a VPS, that is a simple virtual machine in a datacenter. You install your own software OS and Wireguard tunnel. So chances that somebody else is watching your traffic are almost null.
On the other side, using Tor, ask yourself: are you really in full control of the exit nodes? Do you really know who is on the other side of the Tor network that will have to decrypt your traffic in order to forward it to the destination?
Another aspect I do not understand from many users: OK they run a Tor only n ode because they run a bundle node software that do not offer a clearnet connection and they are not technically capable to build their own infrastructure with independent software.
The question is: why then use for example to connect over Tor with your own LN node? ARE YOU NOT TRUSTING YOURSELF?
Why do you not use a Tailscale connection, that is a private VPN tunnel, over a private IP (not public IPs).
I've explained in more details in this guide what is a Tailscale network.. It's damn easy to setup and use, even for not so knowledgeable users and offer enough security and privacy when is about to connect remotely to your Tor boxes. Or even https://holesail.io/
If you really want to run a public routing node, then start by learning a lot about networking, security, servers, VPS, VPN, traffic routing etc.
I wrote more guides about these aspects and I invite you all to read them and think more about when is time to run a LN node over Tor:
- https://darth-coin.github.io/nodes/recommendations-ln-node-operators-en.html
- https://darth-coin.github.io/nodes/lightning-node-maintenance-en.html
- https://darth-coin.github.io/nodes/private-ln-nodes-en.html
- https://darth-coin.github.io/nodes/public-private-node-liquidity-scenario-en.html
- https://darth-coin.github.io/merchants/operating-ln-as-merchant-en.html
- https://darth-coin.github.io/wallets/bitcoin-and-privacy-en.html
And here are some very good step-by-step guides about how to run a LN node behind a VPS tunnel, @Hakuna wrote these excellent guides:
- https://github.com/TrezorHannes/Dual-LND-Wireguard-VPS
- https://github.com/TrezorHannes/Dual-LND-Hybrid-VPS
There are even more guides out there about how to configure a wireguard tunnel. Read them all and adapt to your needs. But remember: Tor is not a reliable solution for your LN node !
