What is Amboss’s “Ghost Addresses”, the culmination of Bitcoin Lightning technology that increases privacy and decentralization?

Advantages of Ghost Addresses

Amboss Technologies has announced its latest innovation in the Bitcoin Lightning Network, “Ghost Addresses.” This new feature will allow Lightning node operators to instantly receive payments into their self-managed wallets, without the need for trust wallets or other centralized intermediaries.

All payments using Ghost Addresses use custom-generated invoices to enhance transaction privacy. This reduces the risk that payment amounts and subsequent transaction details will be exposed to external parties.

It will increase privacy and autonomy within the Bitcoin ecosystem and be a step away from centralized control.

For example, if a cafe were to adopt this technology, it would be possible to receive Bitcoin payments directly and privately from customers. Cafes can set up their own Lightning nodes and use the Amboss service to efficiently manage them. Additionally, Ghost Addresses allows cafes to keep customer payments more private and avoid the risks of centralized services.

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The culmination of lightning network technology

Ghost Addresses integrates existing technologies to simplify invoice processing with LNURL, intuitive transaction formats with Lightning Addresses, and load balancing across enterprise nodes with Phantom Nodes and Payments. .

This system allows any node on the Lightning Network to receive payments directly through invoices created using the Lightning Address protocol.

Specifically, invoices generated using Ghost Address are routed through a fictitious node (Phantom Node) through Phantom Payments. This process is called a “ghost channel,” and it provides a special path for payments to go directly to the recipient’s node, bypassing the traditional Lightning Network route. This method makes receiving funds lightweight and simple, acting as a static and reusable endpoint.

The recipient node receives the payment sent via the ghost channel and requests a “play image”, which is proof of the payment, from the Amboss API. Using this play image, the recipient can transfer the payment to their node and receive it. Amboss provides play images, but these are not disclosed to the outside world to ensure privacy. Additionally, Amboss does not retain payment details or information regarding subsequent transactions.

Using ghost addresses protects payment privacy and avoids the risks of custodial lightning addresses, but it does not solve all problems. Sufficient capacity (inbound liquidity) is required to receive Lightning payments. The use of the Hydro tool is recommended to automatically increase node capacity and improve payment reliability.

Additionally, it was not designed as a way to circumvent laws and regulations such as US KYC (Know Your Customer) and AML (Anti-Money Laundering) requirements. Node operators must be careful to ensure that their actions do not violate KYC and AML regulations.

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