So in this case, how do relays prevent spam? The answer is: Bitcoin ecash as a message stamp. nostr:note1f6vw6cvnp0mt4s3nwakahffwf3qvh4z49kvt93l9gmqy9jpwd2ksfggmq6

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I appreciate all the posts on how this works because I didn't understand at first, but think I'm getting there now.

Is it possible to have group chats using this method?

Yes.