Explain Cashu to me like I’m 45.
Discussion
See my latest note, I think? Lol
How exactly are fedimints and cashu different?
I don’t know that they’re too different tbh, but could be missing something
Fedimint is federated custody, Cashu is a single entity running the mint. Apart from that, the general idea is similar!
Calle, i just installed eNuts. Its f'n kickass. I just found a bug when using it with lnbits cashu.
If you make a backup token inside enuts, save it off somewhere, then come back to enuts, it will ask you if you want to redeem the token. If you do, the full balance of your cashu wallet will double.
I found when I did the "check proofs" it fixed up my wallet. Very cool!
Cashu has one bitcoin wallet in charge of the lightning node.
Fedimint has a lightning node requiring multiple wallet keys (multisig) to withdraw onchain funds.
The ecash system is largely the same betweem fedi and cashu.
They are both mints. They both "mint" redemption certificates (chaumian blind signature ecash). Neither can provide a cryptographic guarantee that there is actually bitcoin "on reserve" at the mint, or that your ecash is backed by actual bitcoin. This is why fedimints exist, so it takes a concensus of custodians to drain the actual bitcoin the certificates represent.
Ecash certificates are only redeemable at the mint where they were issued. Think of it as a money order that's only good at the bank that issued it.
If the mint's lightning node doesen't have lightning channels open, or outbound lightning liquidity, then the only way you can redeem your ecash certificates for bitcoin (if the "bill" is on someone else's mint) is to ask the node operator to send onchain bitcoin to your personal bitcoin wallet address.
The only other way to use the ecash is to send them to someone else that has an "account" at the mint where the ecash was issued.
Cashu is a bearer token. While fedimint is a public ledger. Because Cashu is a bearer token it is completely private to transact with (not even the mint knows who owns it). With a fedimint the Federation knows what adres holds what coins but with Cashu there is no adres. Your claim to the sats is stored in a piece of text. Its basicly chaimian E-cash but then build on top of Bitcoin lightning. There is some trust required in de Cashu mint just like with a fedimint.
Nuts can buy goods and services 🌰
It's like lightning ⚡, but private
I get most of it, and I’ve used it. But I’m not fully clear on how cashu and fedimints are different.
They are completely different. Different use cases. Don't complicate yourself
They are the same except threshold signatures. Cashu could probably be augmented to add federations easy enough.
It's like 1983, but 2023.
I can’t read.
Imagine Cashu like a privacy service for Paypal. You send me some of your Paypal $ to my Paypal Account and you trust me that I won't steal them from you. Great, I like you, too!
After that you can spend those Paypal $ on any online shop that accepts Paypal. The clue: they won't know that it was you who paid. IIRC: Even I won't know.
And: my Paypal Account is not completely private but it has better privacy than any real Paypal account (LN issues...)
nostr:npub12rv5lskctqxxs2c8rf2zlzc7xx3qpvzs3w4etgemauy9thegr43sf485vg anywhere close?
Deposit sats, get tokens. No one knows who owns what tokens, but they can be redeemed for sats at any point.
Ecash was invented 1982 so you must have been around 4 years old!
Cashu is like anonymous bank notes, but the bank is your lighting node, and they are redeemable for bitcoin.
Why does everyone here suck at explaning? Cashu is a bank that issued you a note (ecash tokens).
You can use those to redeem the underlying satoshis, or simply use the notes to pay for goods and services.
A bonus is that you can pay bitcoin invoices with it too. You just ask your bank to pay it instead.
And pretend I’m Joe Biden…
Is it Bitcoin? L1/2/3? What’s wrong with improving Lightning security/privacy over cashu? So many questions myself.
So what's the difference? Why not just pay with BTC? Sounds like an unnecessary step.
After scanning all of this, I don't see how it improves my experience of storing value (bitcoin, on chain, with my keys) or transferring value to someone else (bitcoin or lightning or strike or venmo).
I'm sure it is good for something, but I don't know that it is good for me.
You purchase tokens from an arcade game site near your home. You have the option to share these tokens with your friends. Additionally, you can exchange these tokens for others issued by a different game site operator in another town. You can also redeem these tokens for cash, as long as the site operator permits such transactions.