Finally I can share my evil plan to really stir up the pot.
Thank you HRF!
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Discussion
wen cbdc
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How do you accomplish 5 and 6 atomically? I assume it involves proof of payment, the hash preimage from the lightning invoice.
This step is not atomic, you trust the mint to give you ecash. I don't think you can do it atomically.
Very cool! Congrats on the grant. Have you given any thought to TapAss stable coins? Do you think it would compete with this proposal, or be orthogonal, or complementary?
Pay ln invoice to receive ecash. Can that be made atomic with PTLCs? Instead of hash preimage buy a private key as the proof of payment. If the mint pre-commits to the (blind) signature nonce R (similar to DLCs) the lightning invoice could use s*G as the point to pay to. The payer would verify that this point is hash(R,msg)*P+R to know that the proof of payment will actually be the expected ecash (signature)
wen multipath usd nut zaps.
Arbitrary derivative anonymous bearer assets settled for in bitcoin.
I mean, this hole nutty thing is starting to be just very ridiculous...
Cypherpunk future is now.
This is a great blueprint. Can’t wait to see it built and play out.
Will this make a CBDC world safer? And by this I mean getting more people in a system that could more easily become Bitcoin-only after a crackdown, rather than a system that is already Bitcoin-only that fewer people actually use.
Beautiful
Why would someone that has managed to obtain bitcoin exchange it for USDnuts? Who is the envisioned customer?
Does the value of your stablenuts balance fluctuate with the price of bitcoin?
But wouldn't the value of the ecash token stillfluctuated because the underlyingassets is still bitcoin?
Bitcoin-backed USD ecash is going to be an incredibly powerful tool. Mints can be run by anyone while providing unparalleled privacy.
It's almost like this is the second-best form of fiat after physical cash.
For a business to accept bitcoin ecash or Bitcoin backed USD ecash, wouldn't the store need to be able to confirm the mints holdings?
I guess anyone receiving ecash needs to have a whitelist of trusted mints.
Thinking outloud here...
The user pays a lightning invoice at the amount of 1 US dollar at the current BTC/USD price. The mint now has that amount of lightning held at the mint. The user now has an ecash token for a dollar pegged at that BTC/USD price. If the ecash token is not immediately sent, used, and redeemed for BTC. Then the fluctuations in BTC/USD price will mean either that either the mint will have a gain and when the $1 USD of ecash is redeemed for lightning, there will be lightning left over for the mint to keep, OR the mint will become insolvent and won’t have enough BTC to payout all the ecash receipts.
If the payment is immediately used avoiding the price fluctuations problem, what’s the point? Why not just settle in Lightning based on the BTC/USD price?
Once CBDCs are a thing, I think you can do what you describe above with CHDC instead of Lightning and you gain the privacy benefits of ecash. But I’m not getting what this enables. What am I missing?
Presumably, the mint shorts the BTC on an exchange and keeps the positive carry that bitcoin perpetuals normally have
though everything has a fee so the mint will need to be charging at least 30 basis points for them to not run at a loss
Cool! Basically tether on e-cash. My guess is that exchanges will rug mints of their dollar balance, but that will have to be seen.
Can a DLC be sustained indefinitely? Presumably the mint would need collateral.
I would not be surprised if Tether ends up running a mint. Good way for them to acquire sats.
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USD(eez)Nuts 😁