Paper Bitcoin Redeemable For Actual Bitcoin
In one of my blog posts, I dexcrived how you can use Chaumian E-Cash to give small amounts of bitcoin to peole using Cashu. Cashu is custodial, but I like to use it for 500 sats or less, This is less than the dust limit, so we can;t have the same security assurances with have with on-chain bitcoin anyway.
Cashu uses technology discovered in 1982, by David Chaum. Legend has it he almost made a deal with Microsoft to include anonymous e-cvash on Windows '95, but the deal fell thorough.
Cashu is chaumian e-cash redeemable for real bitcoin on lightning. It is created by a developer who goes by the name Calle. You can hear about it on this episode of Citadel Dispatch.
Birthday Cards
I once wrote about using this new technology to create greeting cards and an artist liked the idea so he began doodling some cashu inspired greeting card drawings. The idea is to give someone a birthday card and they can recieve cashu. this is custodial bitcoin, but I like it because it is a low-risk way to play with real bitcoin. There is a small rug-pull risk, but this can be mitigated by using the web of trust for evaluate mints. Users can also choose ultiple mints. Perhaps you ave 500 sats pread accross five different mints. If one mint gets rugged, you still have backups. When you save enough sats, you could open your own lightnign channel on Phoenix wallet or use Liquid if it fits your threat model.
I am now considring doing cashu nostr addresses to make them re-useable because I like the idea of spending sats on stuff built to last.
Why I Like Giving Sats Away
I started learning about bitcoin when I was flat broke, but a complete stranger on the Internet was gracious enough to give me $1.50 worth of bitcoin. It was just a little bit, not a whole coin, but it was just enough to see that it worked. Someone I never met before was able to send me electronic cash like electronic email without going through a corporation.
I also think or small amounts Cashu can avoid high fees associated with on-chain bitcoin. 50 cent transactions aren't so bad if you are sending $500, but are ridiculous if you are sending $1.00.
Beware: Cashu is not meant for signigicant amounts of value. This is highly experimental technology. Do not be wreckless.
To learn more about Cashu. please see https://cashu.space/
Thanks for Reading.
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