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249 sats \ 2 replies \ @calle 6 May \ on: What's your opinion about encrypted ecash money minted on protocol like cashu? Import_Export
Happy to give you a rundown:
- Ecash is a technique to create digital money invented in the 80s by David Chaum
- It was the very first concept of cryptocurrency (25 years before Bitcoin)
- It's a bearer assets with amazing privacy properties, and in my opinion, it's the thing that is closest to physical cash in the digital realm
- Ecash is not stored in a database or a blockchain. The money is represented as digital data that you (the user) store in your wallet. It is not like Bitcoin, where you store keys to move assets on a blockchain.
- Historically, it had nothing to do with Bitcoin until some projects like Cashu started building it on top of Bitcoin.
- In its current form, it allows us to build custodial Bitcoin applications with very interesting properties: amazing privacy, censorship resistant, and programmable to name a few.
- Cashu is a protocol that describes how to build these things. All Cashu apps are interoperable.
- Ecash mints are centralized: they are service providers (that can be single server or a federation of a handful) – Ecash is not decentralized!
- But: we are lowering the bar of running mints so that many of these can be deployed, either for the purpose of serving a community, or for a specific website, app, whatever you can think of.
IMPORTANT: If you get ecash from a mint in exchange for Bitcoin, the Bitcoin are not in your control anymore. That means the provider can rug you! Be 150% aware of this and only use it accordingly (very small amounts, for daily spending, etc).
Shoot if you have more questions and check out https://cashu.space if you want to learn more.
Thank you!
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Which cashu wallet do you recommend for a beginner?
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