Is #nostr-based email possible?

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Yes, I'm sure it already exists. Just need communication from an smtp or imap server.

It already existed but the service went down and hasn't been replicated

I think it was at nip05.social

Technically nostr.plebs user handles are emails too

nostrplebs.com

Not exactly. You can have an email address that's the same as a nip05, you can run a relay and email server on the same machine. But they're different technologies.

Technically, you donโ€™t even need to run an email server or a relay. Just get a domain and connect it to Google Workspace to get custom email. And create a NIP-05 on the same domain

If you wanna get kyc'ed and pay Google to read your emails, that is.

I use Mailcow dockerized on an Ubuntu server VM on my local network.

I also use MXRoute.com for a few domains. $50/year for unlimited domains and email addresses, but only 50gb storage shared.

I think, a SMTP and IMAP forward emails to your Nostr PM and from your PM, works as a bridge. I think it must be a protected event and you can read the email from a single/couple relay(s)

Emails are notes based on well-established and defined decentralized protocols. People have chose to centralize it in big techs by exchange privacy for cheap comfort. You can use self-hosted email server for full decentralization and email forwarding server for enhanced privacy.

The most direct benefit for email could be providing a decentralized login alternative option with npubs.