Swaps between Cashu mints.

Swaps between cashu mints are great for increasing privacy from an LN observer's perspective.

First understand that as long as transactions are done with Cashu tokens within the same mint or between mints via swaps, privacy is perfect. In transactions within the mint itself, the mint does not know with whom the tokens are being exchanged, and in swaps between mints the receiving mint also does not know the origin of the swap, since the transaction is launched by the LN node where the first mint is located, and not by the user.

Finally, there is the case of wanting to exchange the token in the second mint. In this case the LN node where the mint operates performs a transaction towards our wallet or LN node, but from the point of view of an LN observer, if we use different wallets or nodes between the first mint (sending over LN to create the token) and the second one (redeeming the token through LN) there is no traceability.

Therefore, we can use swaps between mints to erase the traceability of our satoshis at a ridiculous cost since we only pay LN fees and you can add as many hops between mints as you want to add obfuscation.

I add a small diagram to make it clearer.

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Discussion

People are sleeping so much on cashu.

It is a new paradigm, totally private money with no scalability issues backed by bitcoin.

And with federations we will avoid the custody problem.

Absolutely. Even without the federations it's already a huge step.

You can have mints of various sizes and action radius managed by Uncle Jims. And then for you, as a client, it's just yet-another-custodian where you can drop part of your hot funds. No sense in storing your life savings in a cashu mint ran by some random internet guy, just like with Wallet of Satoshi. But beer money? Why not.

Indeed, you can create your own mint in just 5 minutes and issue your own tokens. You can pass them on to a third party who simply by adding your tokens in their cashu wallet will be asked to add your mint and redeem them.

When I think about how big this is it makes my hair stand on end.

#[2]

Ai mare 😅

BBO cashu mint wen?

mobile lightning wallet with native cashu support would be 🤯🤩

wdyt #[2]​ and #[3]​ do either of you know if anyone is working on this?

heard some people spit ideas out but haven’t seen the resources put behind it yet . let’s go!

#[5]

Joinmarket is effective if you know how to use it.

On the other hand, take a look at this note I wrote:

#[3]

#[3]

Brilliant 🫡