Editor’s note: Cashu It is not a business, but a protocol.
Founders: Calle
Date of Founded October 2022
Headquarter Location: The Remote
The amount of Bitcoin held in Treasury N/A
No. of Employees 20-30 open-source developers
Website: https://cashu.space/
Public or private? N/A
Bitcoin has many unique properties. However, one that isn’t among them is privacy.
Transparency is the key to Bitcoin. blockchain Privacy is a stark contrast to the freedom that Chaumian ecashThe legendary Dr. David Chaum, who created the form of digital currency in 1982, is offering.
What are the two technologies’ connections?
It’s been 40 years since the advent of ecash. failed attempt It is possible to incorporate it in the existing traditional financial A developer known as pseudonym developed infrastructure during the 90s. “Calle” Found a place within the Bitcoin Ecosystem for this technology.
“Ecash was waiting for Bitcoin as a foundational layer,” Calle told Bitcoin Magazine. “Bitcoin represents a permissionless system on which anyone can build financial innovation without having to consult the big banks. It’s just a way better environment to experiment with this technology.”
Calle is a pioneer in the use of this new technology. CashuThe., is a free-source Cashu is a hybrid of the Bitcoin and Chaumian ecash worlds. Cashu offers the best of the Bitcoin and Chaumian worlds.
While readers will be familiar with the term, how Bitcoin worksEcash is a relatively new concept.
What is Ecash?
Ecash can be used to transfer assets from one person to another, similar in concept with bitcoin.
The main difference between bitcoin and ecash is that the ledger of bitcoin lives in a computer, while ecash is stored on the device.
“Ecash is for us Bitcoiners a very alien concept because it flips the concept of a ledger on its head,” Calle, pronounced “Calle”, is a popular way to explain the meaning of a word.
“In an ecash system, the state of who owns what is determined by who has ecash in their pockets, not ‘What does this database say about who has what?'” He added.
Technically speaking, ecash is a form of IOU that can be redeemed online. minted The technology is called “blind signatures.”
Cashu is a Lightning Network application that allows ordinary users to run a coin-operated mint. guideCalle.
Calle’s motivation in creating Cashu
Calle’s motivations are not radical.
In fact, his approach is remarkably practical, rational and down-to earth. Cashu’s goal is to maintain the privacy that we have enjoyed in financial Transactions have been taking place for many centuries.
“We used financially-private instruments for hundreds of years without realizing that we use one of the best technologies in financial privacy — physical cash,” Calle said
“So, it’s not really like we’re trying to bend towards something that we haven’t experienced. We’re just preserving the things that we already enjoy,” He also added.
Calle is determined to make Chaumian Ecash a success, despite its challenges when Dr. Chaum attempted to integrate it in the traditional currency. financial The company has a system that allows him to do this. DigiCash in the ‘90s.
“Chaumian ecash had a very big mission,” Calle said
“It should have revolutionized the entire financial world. But, unfortunately, PayPal and Visa took over,” “He added.”
“I’m also being pragmatic in that I’m choosing to build this on Bitcoin because first. Bitcoin is the only world where you can start building something like this open source.”
Ecash On Bitcoin
Cashu is a Bitcoin wallet that Calle has built to encourage more users of bitcoin transactions.
“Bitcoin needs to be carried by diverse groups of people, so we can get the normies to see the enormous potential that this technology gives,” “He said”
He believes we need to be a bit more cautious in how we approach the issue of introducing more people into Bitcoin and allow the technology speak for itself.
“You don’t have to be against the state to love Bitcoin. You don’t even have to believe in separating money from state,” “He said”
“Ideology spreads way more slowly than technology. Technology can explode overnight,” He also added.
“Just explain to people that we have found the money of the internet. This happens once only in the history of the internet, and we have crossed that line. Let’s spread that message.”
Calle was asked if the recent crackdown on the Samourai Wallet developers Cashu is a Bitcoin-based privacy protocol. He did not respond, and he was also unconcerned, saying that traditional financial institutions aren’t concerned. financial The system will soon be using ecash as well.
Ecash Beyond Bitcoin
“In Europe, we have very active discussions about what CBDC will look like here,” Calle in English
“The ECB is willing to also look into ecash systems that provide cash-like privacy for transactions under 300 euros. The Bank of International Settlements is piloting an ecash system right now. The National Bank of Switzerland and the Swiss Parliament itself are considering ecash deployments for their national digital currencies,” He added.
“We see that there is a window of perfectly legal and compliant use of ecash.”
According to Calle, any levels of enhanced privacy that come with using ecash — whether on Bitcoin or within traditional financial structures — is a net positive for whoever uses the technology.
Who Uses Ecash?
Just like Bitcoin, it is available to everyone. It’s more specifically for people who want to send digital payments in a private manner.
“The Achilles heel of digital payments is that all payments are tied to identities,” Calle, pronounced “Calle”, is a popular way to explain the meaning of a word. “There is no reason why you need to have KYC to read an article on NYTimes.com. These online activities should not connect to our bank account, especially if you’re reading political articles.”
Calle says that users of Nostr are already using Cashu to create ecash in chat apps with privacy.
Some users pay with it in order to avoid denial of services (DoS) while others use the currency to buy VPNs, without disclosing who they are.
Calle was most enthusiastic when he talked about how those without bank accounts or who were debanked due to their political affiliations could use ecash.
“I think a lot about how this can become local banking infrastructure in parts of the world where there are no banking systems and or banking systems are so prohibitive that dissidents and political activists basically cannot use any digital money,” “He said”
Calle explained how to issue fiat-denominated electronic cash backed by Bitcoin in these cases.
“We can build fiat payment experiences without touching the fiat banking system at all in the most private and fast and efficient way that is very close to physical cash, but it is all still built on Bitcoin. That makes me very excited because stablecoins are extremely popular and they have also taken over the popularity of bitcoin in most parts of the world,” He also added.
“There is just a clear demand for it and fiat on ecash is the best form of fiat that I can think of.”
Proceed with Caution
Although ecash has many benefits, you should also be cautious when using it.
The use of ecash comes with a counterparty risk, as it is issued through a custodian.
“I would urge anyone to be very cautious about the custodian that they choose,” Calle added a disclaimer to his statement. He explained that the Cashu team is creating a rating system for the mints based on their reputation to reduce the risks associated with investing in them.
“We recommend to anyone using Cashu: Use it for very small amounts. Use it like a wallet in your pocket so that if you lose it at the bar, it won’t hurt you too much,” He also added.
Then he went on to say that “when a mint goes down, your sats are gone.”
Cashu’s system can restore your ecash if the device that stores it is lost.
“In Cashu itself, there is a mechanism to restore your tokens if you lose them, similar to Bitcoin UX where you store a seed phrase,” Calle explained.
He also noted that the users can restore funds via the mint, and that if it goes under, they will lose all their tokens.
Call to Action
Calle’s not making money from his work Cashu. Cashu was originally conceived as a project by an “academic interest” He has developed it because he is motivated to do so.
“Working on Bitcoin is a big honor and opportunity that gives life meaning, because it’s a project for humanity,” He explained.
“It’s beautiful to be a little part of this process, knowing that you work on something day-to-day that improves the world and doesn’t feed big mega tech companies while they’re sucking the life out of your body.”
So, not only does he encourage you to use Cashu if you’re looking for greater privacy in your everyday bitcoin transactions, but he invites developers — or anyone with any skills pertinent to driving Bitcoin adoption — to join him in helping to further Bitcoin adoption.
“I know so many people with this desire to work on something that makes the world a better place, and Bitcoin is an open system that invites anyone with any skill level to participate,” Calle said
“For those in the big tech industry whose work has lost meaning, this is an opportunity to work on something meaningful, global and inclusive,” “He added.”
“Join us as we go to the moon.”
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: bitcoinmagazine.com