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129 sats \ 0 replies \ @tolot 13 May \ on: Can Cashu Be Self-Custodial? econ
Nope, even though the Cashu protocol unveils different dynamics than the simple self-custodial/custodial.
A couple of points in this regards:
- Ecash cashu tokens are self custodial, in the sense that you hold them and nobody else holds them for you;
- Cashu mint is a trusted third party, because it is responsible of double-spending avoidance.
I would say that cashu is a protocol in which there are third parties involved, thus it raises a counterparty risk. Technically, cashu tokens are self-custodial.
But this is a nuance...to simplify it to newcomers is fine to call it a "custodial" system.
I wonder if it will ever be possible to have an onchain UTXO acting as a mint, but I never thought through this technically speaking