I’ve been curious if cashu/ecash can be used to improve privacy. I know using tokens is much more private than lightning, but more so I’m curious if converting sats to tokens and then back to sats breaks any prior kyc links. Like would you get your same sats back or perhaps someone else’s??
Today I'm putting together a tutorial on nostr:npub1dx5q2el8nd4eh3eg9t2e25fd7zuqg7zxz6ldkc3uzgh66ss2yc6st288sj - ecash integrated with lightning and nostr. Anything in particular you guys would like me to include in the video?
Discussion
Ecash gives you privacy from the mint and from other lightning users because lightning payments are made by the mint and that could be anyone. The thing with kyc is that even if you use a privacy tools like ln, ecash, or mixers such that the gov't may not know exactly where the coins are, they still have a record of you buying them and not selling them. You can't really un-kyc coins, you can only obfuscate where you currently hold them.
You can un-kyc coins, but it’s true that the record of you purchasing the coins stays.