Thread - Nostr Hypermedia

I think I'm missing something. What's the difference between Cashu and Sats? Are we talking about something like a stablecoin, with value of a unit = 1USD, or ... I don't get it... Sorry, I've been seeing a lot of talk about how exciting it is, but not enough about WHAT it is. What am I missing? And yes, I've read the FAQ. I'm not seeing an answer there for some reason.

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tolot tolot@verified-nostr.com 1 year ago

Cashu is NOT sats. A Cashu token (usually called ecash or "nut") is just a token, an IOU, a "voucher". The nice thing about Cashu Protocol is that it creates a standard for some providers (mints) that are Lightning nodes to create ecash pegged 1-to-1 with sats. So if you go to a cashu mint to get some ecash the mint will ask you to pay an invoice of X sats, you pay the LN invoice and the mint returns to you X ecash tokens. The mint promises to let you redeem the tokens 1-to-1with sats. This is how the cashu protocol works

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unmixed¨diagnoses 1 year ago

So I have to trust mints? What if all mints runs by years by feds passing by honest people waiting to confiscate all satoshis?

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