Oddbean new post about login | logout Cashu offers the best privacy for custodial wallets. Custodial wallets make up the vast majority of all wallets in the world. It's not 3D chess. Our plan is pretty obvious.
Better than liquid?
Liquid is a Blockchain and has a transaction graph, block explorers, etc. Everybody sees which address pays which. Monero has better privacy than Liquid because the transaction graph is "blurred", but still exists. Coinjoins can help here as well. Ecash has no transaction graph at all.
In short: hell yes!
Gotcha so the trade off is improved privacy but then we get back into counterparty risk, whats your thoughts on this? I’ll have to experiment with it.
A random Cashu mint is less trustworthy than the liquid federation. Don't put more than a small spending balance in so you don't get rekt. It's meant for short-term payments and nothing else.
Got it thanks
Liquid is trying to scale one Blockchain with another Blockchain, fundamentally bad design principle
It was kinda the common mindset of everyone back when it was introduced a long time ago.
pretty sure people already said that back in the day ? sidechains aren't a way to scale, but can be used to experiment with features that aren't on the main chain (and may never be)
I certainly thought that we would see a thousand side chains by now...
One difference: Liquid hides the amounts, which is great, but as it's a blockchain, the relationship between subsequent transactions is clear to be seen (transaction graph). That's not the case in cashu (ecash).
We will also hide amounts (soon TM, WIP), it will have such insane consequences
Go on what are the insane consequences
Currently a wallet is composed of a bunch of nuts that make up your entire balance. We must do this to maintain privacy (all nuts with the same amount look the same to the mint). When we hide the amount, we can store the entire wallet in a single nut while having better privacy than today. Wallets will be less than 1kb in size. We will put them literally everywhere. It will be in-fucking-sane
Interesting keep us posted
How reliable are payments compared to say lightning where payments still fail sometimes?
Cashu uses Lightning for inter-mint payments. A mint likely has better channels than an ordinary user but Lighting remains Lightning. Intra-mint payments always settle instantly.
Ok so mints are built on Lightning network then is that right?
Yes
Layer 3 enters the chat
nostr is becoming the world wide banking protocol
Facts
yes we ain't seen nothin yet protocol open source no limits LFG!
Bruv nuts within nutz tesseract-nut-4d
Sounds amazing! Can I read more about this somewhere?
If you want to get knee-deep into the crypto: WabiSabi paper on KVAC used for CoinJoins: https://eprint.iacr.org/2021/206.pdf The Signal Private Group System and Anonymous Credentials Supporting Efficient Verifiable Encryption: https://eprint.iacr.org/2019/1416 We'll publish more resources on as we build out the protocol for Cashu.
So cashu is coinjoin on Lightning?
Is there a mint standard operating procedure that verifies their reserves are what they should be? Worries me that mints can cheat.
Mints can debase the reserves just like basically every non-ecash custodian can. Ecash can be audited better than an ordinary custodian though, but not as easily as a Blockchain.
eCash >>>>>>>>>> Custodial lightning nostr:note10s45hfk9qsmmheck9s9wq906t5tvd3unh0dd3gnpznz037qjesyq4la3h5
nostr:nevent1qqsrulyp4x097det90n83zfarncrm6cvcwefz0az4k9x59ra603kzkgpz3mhxw309ucnydewxqhrqt338g6rsd3e9upzp5mwszpl57ekmthxgm9ck0uel64rmz095wt9pp6p7qp7yxkqk6lvqvzqqqqqqyvyvg3f