The problem with peer-to-peer exchanges is you have no idea who you are dealing with and that is a huge risk. Let me explain: you think nothing of buying $1000 of bitcoin from some anon. A month later the FBI is knocking on your door because your bank account made a transaction to a known human trafficker. Oh S*|+! I thought I was just buying some no KYC sats. FBI, “tell that to the judge.” Is there a solution to this problem that I don’t know about?
N3XB: Naive Nostr No-KYC Exchange for Bitcoin
N3X (Naive Nostr No-KYC Exchange) is a layer 2 protocol inspired by, and runs on top of Nostr. The goal is to be a simple but extensible protocol to facilitate exchanges and marketplaces in an interoperable, censorship-resistant, privacy-aware, and decentralized manner. The initial example of N3X might be a Bitcoin <=> fiat decentralized exchange protocol, codenamed N3XB, but any type of marketplace or exchange should potentially be enabled with N3X.