Cyph3rp9nk on Nostr: Swaps between Cashu mints. Swaps between cashu mints are great for increasing privacy ...

Swaps between Cashu mints.

Swaps between cashu mints are great for increasing privacy from an LN observer's perspective.

First understand that as long as transactions are done with Cashu tokens within the same mint or between mints via swaps, privacy is perfect. In transactions within the mint itself, the mint does not know with whom the tokens are being exchanged, and in swaps between mints the receiving mint also does not know the origin of the swap, since the transaction is launched by the LN node where the first mint is located, and not by the user.

Finally, there is the case of wanting to exchange the token in the second mint. In this case the LN node where the mint operates performs a transaction towards our wallet or LN node, but from the point of view of an LN observer, if we use different wallets or nodes between the first mint (sending over LN to create the token) and the second one (redeeming the token through LN) there is no traceability.

Therefore, we can use swaps between mints to erase the traceability of our satoshis at a ridiculous cost since we only pay LN fees and you can add as many hops between mints as you want to add obfuscation.

I add a small diagram to make it clearer.