I still don’t understand how it works.

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Yes this way too confusing. I was quickly deterred

[806982]

Me neither, really. Cryptography is a pretty opaque topic.

At a basic layer the mint receives sats via lightning, then it can transfer them between users who connect wallets to that mint, which can then be sent out to a lightning wallet. That's pretty simple.

How the privacy preserving part works I'm not so sure.

https://docs.cashu.space/protocol