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

Citadel Dispatch - A podcast by ODELL

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support dispatch: https://citadeldispatch.com/donate  ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ EPISODE: 112BLOCK: 809610PRICE: 3813 sats per dollar TOPICS: using HSMs to reduce lightning hot wallet riskproject website: https://vls.technostr live chat: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://citadeldispatch.com/stream⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠nostr account: ⁠https://primal.net/odell⁠youtube: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.youtube.com/@citadeldispatch⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠podcast: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.podpage.com/citadeldispatch⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠stream 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