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docs/lnd/forwarding_history_privacy.md

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+# Forwarding History Privacy Management
+
+## Introduction
+
+The Lightning Network excels at providing fast, low-cost payments with strong
+privacy properties. However, routing nodes and Lightning Service Providers
+(LSPs) face a unique challenge: their operational databases accumulate
+forwarding history that, if compromised or subpoenaed, could reveal sensitive
+information about payment flows across the network. This document explores the
+privacy implications of forwarding logs and introduces LND's solution for
+implementing data retention policies without migrating to a new node instance.
+
+## Understanding Forwarding History
+
+When your LND node routes a payment between two other nodes, it records detailed
+information about that forwarding event in its database. This serves several
+important operational purposes, including fee accounting, channel performance
+analysis, and troubleshooting. Each forwarding event captures the incoming and
+outgoing channels, amounts transferred, fees earned, and precise timestamps.
+
+Over months or years of operation, a busy routing node accumulates millions of
+these records. While this historical data provides valuable insights into node
+performance, it also creates a potential privacy liability. An attacker who
+gains access to this database—whether through a security breach, or physical
+seizure—could potentially reconstruct payment paths across the network by
+correlating forwarding events across multiple compromised nodes.
+
+## Privacy Implications for Operators
+
+For individual routing node operators, the privacy risks of retaining unlimited
+forwarding history are modest but real. If an adversary gains access to your
+node's database, they could analyze your forwarding patterns to infer
+information about the network topology you participate in and potentially
+identify payment patterns involving your channels.
+
+### The Traditional Dilemma
+
+Prior to this feature, routing node operators faced an uncomfortable tradeoff.
+To implement a data retention policy and purge old forwarding logs, the only
+practical option was to shut down the node, reset the database, and restore
+channels from backups—effectively migrating to a fresh node instance. This
+process carries significant operational risks, including potential channel
+closures, loss of channel state, and extended downtime. For LSPs serving
+customers around the clock, such maintenance windows are highly disruptive.
+
+## The DeleteForwardingHistory Solution
+
+LND's `DeleteForwardingHistory` RPC addresses this challenge by providing a
+safe, reversible-only-forward way to implement data retention policies. The
+feature allows operators to specify a time threshold—either as a relative
+duration or an absolute timestamp—and permanently delete all forwarding events
+older than that threshold. The deletion operation executes in configurable
+batches to avoid holding large database locks, and it returns statistics about
+the deleted events, including the total fees earned during that period for
+accounting purposes.
+
+### How It Works
+
+The deletion mechanism operates at the database layer, directly manipulating the
+forwarding log bucket in LND's embedded bbolt database. The forwarding log
+stores events using nanosecond-precision timestamps as keys, which enables
+efficient time-based range queries. When you invoke a deletion, LND constructs a
+cursor-based iteration that walks through events in chronological order,
+collecting keys for events older than your specified cutoff time. It then
+deletes these events in batches, with each batch executed within its own
+database transaction.
+
+```mermaid
+sequenceDiagram
+    participant User
+    participant CLI
+    participant Router RPC
+    participant ForwardingLog
+    participant Database
+
+    User->>CLI: deletefwdhistory --age="-720h"
+    CLI->>Router RPC: DeleteForwardingHistory(duration: "-720h")
+
+    Router RPC->>Router RPC: Parse duration → absolute time
+    Router RPC->>Router RPC: Validate minimum age (1 hour)
+
+    loop For each batch (default: 10,000 events)
+        Router RPC->>ForwardingLog: DeleteForwardingEvents(endTime, batchSize)
+        ForwardingLog->>Database: Begin transaction
+        ForwardingLog->>Database: Iterate events <= endTime
+        ForwardingLog->>ForwardingLog: Calculate fees for batch
+        ForwardingLog->>Database: Delete batch of keys
+        ForwardingLog->>Database: Commit transaction
+    end
+
+    ForwardingLog->>Router RPC: Return stats (deleted count, total fees)
+    Router RPC->>CLI: DeleteForwardingHistoryResponse
+    CLI->>User: Display deletion results
+```
+
+This batched approach ensures that even nodes with millions of forwarding events
+can safely purge old data without causing database performance issues. Each
+batch completes within a separate transaction, limiting lock contention and
+allowing other database operations to proceed between batches.
+
+### Security Considerations
+
+The implementation includes several safeguards to prevent accidental data loss.
+First, the RPC enforces a minimum age requirement: you cannot delete events less
+than one hour old. This prevents mishaps where an operator accidentally deletes
+recent forwarding history due to a timestamp parsing error or misunderstanding
+the time format. The CLI command additionally requires explicit confirmation
+before proceeding with the deletion.
+
+Second, the RPC requires the "offchain:write" macaroon permission, treating
+forwarding history deletion as a sensitive write operation similar to payment
+deletion. This ensures that only authorized users can purge forwarding data.
+
+Third, the operation is logged extensively. LND writes detailed log messages
+before and after each deletion operation, recording the time threshold, batch
+size, number of events deleted, and total fees from the deleted period. These
+audit trails help operators verify that deletions executed as intended.
+
+### Fee Accounting
+
+One critical requirement for LSPs implementing data retention policies is
+maintaining accurate accounting records. Even after purging old forwarding
+events for privacy reasons, operators need to know how much revenue their node
+generated during those periods for tax reporting and business analytics.
+
+The deletion operation addresses this by calculating and returning the sum of
+all fees earned from the deleted events. For each event, LND computes the fee as
+the difference between the incoming and outgoing amounts, then aggregates these
+fees across all deleted events. The response includes this total in
+millisatoshis, allowing operators to record their earnings before purging the
+detailed records.
+
+```mermaid
+graph TD
+    A[Forwarding Event] --> B{Calculate Fee}
+    B --> C[Fee = AmtIn - AmtOut]
+    C --> D[Accumulate to TotalFees]
+    D --> E{More Events?}
+    E -->|Yes| A
+    E -->|No| F[Return Total to User]
+    F --> G[Operator Records<br/>for Accounting]
+    G --> H[Delete Detailed Events]
+```
+
+This approach separates accounting data from operational surveillance data. You
+can maintain aggregate financial records while minimizing the detailed
+forwarding logs that pose privacy risks.
+
+## Usage Guide
+
+### Command Line Interface
+
+The `lncli deletefwdhistory` command provides the primary interface for
+operators. The command accepts time specifications in two formats: relative
+durations for convenience, or absolute Unix timestamps for precision.
+
+For most use cases, relative durations offer the most intuitive interface. To
+implement a 90-day retention policy, you would periodically run:
+
+```bash
+lncli deletefwdhistory --age="-90d"
+```
+
+The supported time units cover a wide range of retention policies:
+
+- Seconds (`s`) and minutes (`m`) for testing or very short-term retention
+- Hours (`h`) and days (`d`) for common operational timeframes
+- Weeks (`w`) for weekly cleanup schedules
+- Months (`M`, averaged to 30.44 days) for typical retention policies
+- Years (`y`, averaged to 365.25 days) for long-term archives
+
+The minus sign prefix indicates you're specifying how far back in time to
+delete. This convention matches the relative time syntax used elsewhere in LND
+and makes the intent clear: "delete events from more than X time ago."
+
+For precise control, you can specify an absolute Unix timestamp:
+
+```bash
+lncli deletefwdhistory --before=1704067200
+```
+
+This deletes all events before January 1, 2024 00:00:00 UTC. Absolute timestamps
+are particularly useful when implementing policies tied to specific dates, such
+as calendar year boundaries for accounting purposes or regulatory compliance
+deadlines.
+
+### Batch Size Tuning
+
+The `--batch_size` flag controls how many events are deleted per database
+transaction. The default value of 10,000 provides a good balance for most nodes,
+but you may want to adjust this based on your node's characteristics.
+
+For nodes with slower disk I/O or running on resource-constrained hardware,
+reducing the batch size decreases the duration of each database lock, improving
+responsiveness to concurrent operations:
+
+```bash
+lncli deletefwdhistory --age="-1M" --batch_size=5000
+```
+
+Conversely, for nodes with fast SSDs and low concurrent load, increasing the
+batch size can speed up the overall deletion process:
+
+```bash
+lncli deletefwdhistory --age="-1M" --batch_size=25000
+```
+
+The implementation caps the maximum batch size at 50,000 to prevent excessively
+large transactions from degrading database performance.
+
+### Automation and Scheduling
+
+Most operators will want to automate forwarding history cleanup rather than
+running deletions manually. The command integrates naturally with cron jobs or
+systemd timers. For a monthly cleanup maintaining a 90-day retention window:
+
+```bash
+# Run at 3 AM on the first day of each month
+0 3 1 * * /usr/local/bin/lncli deletefwdhistory --age="-90d" --force >> /var/log/lnd/fwdhistory_cleanup.log 2>&1
+```
+
+The `--force` flag skips the interactive confirmation prompt, which is
+required for unattended automation. In production you should implement
+additional safeguards such as pre-deletion validation checks and alerting
+on unexpected results.
+
+For more sophisticated automation, consider implementing a script that:
+
+1. Queries current forwarding history statistics
+2. Calculates the appropriate deletion threshold based on database size and growth rate
+3. Executes the deletion
+4. Records the fees returned for accounting
+5. Monitors the resulting database size and alerts if disk space isn't reclaimed as expected
+
+### Database Compaction
+
+Deleting forwarding events frees space within LND's bbolt database, but this
+space isn't immediately returned to the operating system. bbolt uses a
+copy-on-write structure where deleted data leaves "free pages" that can be
+reused for future writes, but the overall file size doesn't shrink until you
+compact the database.
+
+LND supports automatic compaction via the configuration option:
+
+```
+db.bolt.auto-compact=true
+```
+
+With auto-compaction enabled, LND periodically performs compaction during normal
+operation, typically triggered when the amount of free space exceeds a
+threshold. However, after a large deletion operation, you may want to trigger
+compaction immediately to reclaim disk space.
+
+The recommended approach is to schedule compaction shortly after your regular
+deletion operations:
+
+1. Run `deletefwdhistory` to purge old events
+2. Restart LND with `--db.bolt.auto-compact=true` if not already enabled
+3. Monitor database file size to confirm space reclamation
+
+Be aware that database compaction requires free disk space equal to the current
+database size during the operation, as it creates a new, compacted copy of the
+database before replacing the original.
+
+## Integration with Existing Tools
+
+### Forwarding History Analysis
+
+The deletion operation doesn't interfere with LND's existing `forwardinghistory`
+RPC, which allows you to query and analyze forwarding events. After a deletion,
+queries for time ranges that have been purged will simply return no events for
+those periods, while more recent events remain accessible.
+
+This means you can continue using analytical tools and scripts that query
+forwarding history, but you should design them to handle sparse historical data
+gracefully. Tools should not assume that forwarding history extends back to the
+node's inception date.
+
+### Channel Analytics
+
+Similarly, channel performance analysis tools that rely on forwarding history
+will only have access to events within your retention window. When evaluating
+channel performance metrics like forwarding frequency or fee revenue, be mindful
+that historical data before your retention cutoff is no longer available.
+
+For long-term performance tracking, consider aggregating statistics before
+purging detailed events. You might maintain summary records showing weekly or
+monthly aggregate forwarding counts and fees per channel, even after deleting
+the individual event records.
+
+## Privacy Best Practices
+
+While the deletion feature provides operators with a mechanism to implement data
+retention policies, it's important to understand what it does and doesn't
+protect against.
+
+### What Deletion Protects
+
+Deleting old forwarding history reduces your node's exposure if the database is
+compromised in the future. An attacker who gains access to your node after
+you've implemented a 90-day retention policy can only observe the last 90 days
+of forwarding activity, not the entire operational history. This limits the
+window during which surveillance or correlation attacks could be performed using
+your node's data.
+
+### What Deletion Doesn't Protect
+
+The revocation log for _active_ channels contains information that can be used
+to reconstruct transaction flows. Once channels are closed, this data is
+automatically deleted.
+
+The normal logs of a node also contain information that can be used to correlate
+transactions. Users can set up automated systems to manually purge logs, or
+configure the logging directory to a purely in-memory file system.
+
+### Defense in Depth
+
+Forwarding history deletion should be one component of a comprehensive privacy
+strategy, not your only defense. Other important measures include:
+
+- Restricting physical and network access to the node
+- Implementing strong authentication and access controls
+- Regularly auditing who has access to the node and its backups
+- Using channel aliases and avoiding personally identifiable information in
+  channel names
+- Running your node over Tor to hide the network-level correlation between node
+  identity and IP address
+
+
+The deletion feature gives you control over how long your node retains detailed
+forwarding records, but it doesn't eliminate all privacy risks inherent in
+operating a Lightning Network routing node.
+
+## Troubleshooting
+
+### Database Lock Timeouts
+
+During deletion of very large numbers of events, you might encounter database
+lock timeout errors if other operations are trying to access the database
+concurrently. If this occurs:
+
+1. Reduce the batch size to shorten each transaction
+2. Schedule deletions during low-traffic periods
+3. Temporarily pause other operations that query forwarding history frequently
+
+### Insufficient Disk Space for Compaction
+
+Database compaction requires temporary free space roughly equal to the size of
+your database. If compaction fails due to insufficient disk space, you'll need
+to free up space before the compaction can proceed:
+
+1. Delete other unnecessary files from the disk
+2. Move log files or other non-critical data to alternate storage
+3. Consider whether you can safely delete older database backups
+
+## Performance Considerations
+
+Deletion performance scales linearly with the number of events being deleted.
+Performance varies significantly depending on storage hardware and database
+size; operators should benchmark on their own hardware before relying on
+specific throughput estimates.
+
+The operation's impact on node performance during deletion is minimal. Each
+batch executes quickly, and the gaps between batches allow other database
+operations to proceed. You can safely run deletions while the node is actively
+routing payments, though you may want to avoid doing so during peak traffic
+times on very busy nodes.
+
+Database compaction has a more significant performance impact, as it requires
+LND to copy the entire database. During compaction, expect elevated CPU and disk
+I/O, and budget several minutes for the operation to complete depending on your
+database size. LND remains operational during compaction, but you may observe
+increased latency for database-heavy operations.
+

docs/lnd/release-notes/release-notes-0.21.0.md

@@ -101,6 +101,12 @@
 
 ## RPC Additions
 
+* [Added `DeleteForwardingHistory`
+  RPC](https://github.com/lightningnetwork/lnd/pull/10666) to the router
+  sub-server, allowing operators to selectively purge old forwarding events from
+  the database. Deletion requires the target cutoff timestamp to be at least 1
+  hour in the past, preventing accidental removal of recent data.
+
 * The `WaitingCloseChannel` response in `PendingChannels` now includes two
   new fields via [#10509](https://github.com/lightningnetwork/lnd/pull/10509):
   `blocks_til_close_confirmed`, showing the remaining confirmations until a