Swaps between Cashu mints

“Swaps between cashu mints are great for increasing privacy from an LN observer’s perspective.

First understand that as long as transactions are done with Cashu tokens within the same mint or between mints via swaps, privacy is perfect. In transactions within the mint itself, the mint does not know with whom the tokens are being exchanged, and in swaps between mints the receiving mint also does not know the origin of the swap, since the transaction is launched by the LN node where the first mint is located, and not by the user.

Finally, there is the case of wanting to exchange the token in the second mint. In this case the LN node where the mint operates performs a transaction towards our wallet or LN node, but from the point of view of an LN observer, if we use different wallets or nodes between the first mint (sending over LN to create the token) and the second one (redeeming the token through LN) there is no traceability.

Therefore, we can use swaps between mints to erase the traceability of our satoshis at a ridiculous cost since we only pay LN fees and you can add as many hops between mints as you want to add obfuscation.

I add a small diagram to make it clearer.”

What is Cashu?

Cashu is the protocol; Nutstash a wallet. Cashu is a free and open-source Chaumian ecash system built for Bitcoin. Cashu offers near-perfect privacy for users of custodial Bitcoin applications. Nobody needs to knows who you are, how much funds you have, and with whom you transact with.

What is Chaumian eCash?

David Chaum is associated with the invention of Blind Signature Technology. In 1982, while studying at the University of California, Berkeley, Chaum wrote a paper describing the technological advancements to public and private key technology, in order to create this Blind Signature Technology.[4] Chaum’s Blind Signature Technology was designed to ensure the complete privacy of users who conduct online transactions. Chaum was concerned with the public nature and open access to online payments and personal information. He then proposed to construct a system of cryptographic protocols, in which a bank or the government would be unable to trace personal payments conducted online.[5] This technology became fully implemented in 1990, through Chaum’s company, DigiCash.

3 main characteristics of Chaumian eCash

(1) Inability of third parties to determine payee, time, or amount of payments made by an individual.
(2) Ability of individuals to provide proof of payment, or to determine the identity of the payee under exceptional circumstances.
(3) Ability to stop use of payments media reported stolen.

How To Send ECash Tokens To Nostr Users

Create a wallet at https://wallet.nutstash.app/

More information at: https://thebitcoinmanual.com/articles/send-ecash-tokens-nostr/