mrldotsh on Nostr: Cashu adds a high level of privacy to #Bitcoin. But it also requires trust. ...

Cashu adds a high level of privacy to #Bitcoin.

But it also requires trust.
(Custodial LN does so too. So, nothing new.)

It works much like the initial, gold backed central bank and cash system.

Mint: you give gold/sats, receive paper/ecash

Melt: you give paper/ecash, receive gold/sats

Use: trade paper/ecash for goods and services

Trust:
- the bank/ecash mint to (1) return gold/sats for paper/ecash, (2) not expand the supply of paper/ecash
- yourself: if you lose the paper/ecash tokens, it's gone (much like cash, but I think Cashu is working on a backup-restore process)

Cashu mints could become the banks of the new world but with much better attributes:
- easy to spin up
- no accounts required (no KYC)
- ecash tokens can be tied to #Bitcoin 
- WIP: better transparency. It's code. There are projects trying to solve the "trust requirements"

(I'm learning and thinking in the open.

Please correct me if I got anything wrong.)

#cashu #ecash