CD112: Lightning Node Security with Ken of the VLS Project (HSMs for Lightning)

Citadel Dispatch

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EPISODE: 112
BLOCK: 809610
PRICE: 3813 sats per dollar
TOPICS: using HSMs to reduce lightning hot wallet risk
project website: https://vls.tech
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podcast: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.podpage.com/citadeldispatch⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠
stream sats to the show: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.fountain.fm/
(00:00:30) Introduction to Citadel Dispatch and the topic of improving the security of Lightning Nodes

(00:01:25) Background of Ken and his experience in Bitcoin and custody

(00:09:52) Discussion on the hot wallet risk issue in Lightning Nodes and the need for additional signing mechanisms

(00:14:36) Explanation of HSMDs (Hardware Security Module Daemons) and their role in securing hot wallets

(00:20:08) Discussion on the vulnerabilities in Lightning Nodes and the need for improved security

(00:28:07) Exploration of different use cases for VLS, including enterprise, consumer, and small retailer applications

(00:39:46) Importance of open source and decentralization in the development of VLS

(00:42:46) Status update on the progress of VLS and its collaboration with other projects

(00:46:09) LND's signing abstraction and adaptation challenges

(00:46:37) Effort to connect LND to VLS

(00:47:06) Node integration and additional information

(00:47:50) Adding hints to wallet addresses

(00:49:03) Critical messages for VLS

(00:49:31) Buy-in from maintainers of implementations

(00:50:09) Anticipating a killer app for Lightning

(00:52:50) Preparing for scaling and security issues

(00:56:48) The vision of a plug-and-play Lightning node

(01:00:38) Value for value and micro paywalls

(01:04:30) Use cases for Nostr

(01:09:53) Contributors and contact information