The biggest downside for customers is not getting important updates/info because the site has no way of contacting you out of band.
The biggest downside for companies is the above + marketing.
I ran into this with https://gitern.com/ ... we used ssh pubkeys for login so I couldn't contact the customers! It sucked when I wanted to get feedback ... but it was also part of the appeal.
If there were only a pub key encrypted form of communication we could use to replace email comms.
I know Nostr isn't ready to fill this role but email really is a weakness in this whole digital world we've created.
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I'd love to hear people smarter than me talk about the tradeoffs of using public key encryption as a replacement for email. But I wonder if we end up in the same spot with a pile of pubkeys instead of email addresses...
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With something like nostr, native contact lists might make it a little more manageable relative to email. With email there’s also the assumption that it’s a private inbox, which you can’t assume with nostr because you blast your pubkey everywhere.
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