1. **Privacy and Tracing**: The Lightning Network provides …

1. **Privacy and Tracing**: The Lightning Network provides enhanced privacy compared to on-chain Bitcoin transactions because transactions are conducted off-chain and only the opening and closing of channels are recorded on the blockchain. This means that individual transactions within a channel are not publicly visible, offering a degree of privacy. However, this doesn't mean that fraud is entirely untraceable; it just requires different methods to detect.