Okay, so nonce is a way to manage your initiations so you can expire them for example without complicating things with signatures for example, which would bloat the nauth.

Did I get that right?

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Exactamento. It's basically a challenge and response. If I receive the challenge via a signed/encrypted DM then that is equivalent to the typical challenge and signed response. If you wish, you could add your own timeout, but that would be outside of the protocol spec, more like good practice guidance.