Cashu adds a high level of privacy to #Bitcoin.
But it also requires trust.
(Custodial LN does so too. So, nothing new.)
It works much like the initial, gold backed central bank and cash system.
Mint: you give gold/sats, receive paper/ecash
Melt: you give paper/ecash, receive gold/sats
Use: trade paper/ecash for goods and services
Trust:
- the bank/ecash mint to (1) return gold/sats for paper/ecash, (2) not expand the supply of paper/ecash
- yourself: if you lose the paper/ecash tokens, it's gone (much like cash, but I think Cashu is working on a backup-restore process)
Cashu mints could become the banks of the new world but with much better attributes:
- easy to spin up
- no accounts required (no KYC)
- ecash tokens can be tied to #Bitcoin
- WIP: better transparency. It's code. There are projects trying to solve the "trust requirements"
(I'm learning and thinking in the open.
Please correct me if I got anything wrong.)
#cashu #ecash
Feedback wanted 👇🧡
I was trying to create some visuals that help one understand how inflating the monetary supply dilutes your fiat savings account.
Any feedback or ideas on how to make this better is welcome!