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I say this because of the following reasoning: Lightning network wallets will have to completely possess my private key, whereas non-LN hot wallets will most of the time only have my key encrypted (I sign the tx locally over my browser).
Is the statement that LN hot wallets will be less secure than non LN hot wallets correct?
Answers
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Of course this depends a lot on the implementation you are using but generally the answer is yes.
LN wallet vulnerabilites = hot wallet vulnerabilities + LN protocol vulnerabilites
Here are the main additional issues coming with running a LN node:
- You could be scammed by somebody releasing an old channel state
- You announce to the whole world how much money you have on your node [this is optional and depends on whether you want your node to be routing other peoples payments or not]
