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11 sats \ 0 replies \ @Ov1 29 Dec 2024 freebie \ on: Is ecash private enough for dark markets? privacy
When it comes to privacy, using the herd as camouflaged obscurity depends on the size of the "anonymity set", the communication channels, and access points used. Private money, whether LN, XMR, and eCash can be made ineffective IF not used with disciplined OpSec. Using a KYC'd phone, a KYC'd internet provider, and communicating over unencrypted channels will eliminate the anonymity of your transactions. The 1st thing to understand is that Anonymity means not knowing who you are and Privacy means knowing what you are doing, where you are, and who you are interacting with. Each of these variables must be managed for proper OpSec, especially when using DNMs.
Also, liquidity and provenance matter. As in, how big of a marketplace exists for moving into and out of these currencies. Almost ALL digital currency liquidity exists between fiat & BTC, with very few options for moving fiat into and out of XMR in cash. These on/off ramps cannot handle the volume of flow that big money requires and will take time to be built for both LN and eCash. But, public entities that control by far the vast majority of the world's wealth cannot and will never use private-by-default currencies. We must in a "sly roundabout way" bring privacy for ourselves, our families, and our businesses in through the back door. This is what LN and eCash are enabling, for those willing and able to put forth the effort to learn and to act with discipline.
Once eCash mints begin popping up with every employer/employee relationship, as the already have semi-trusted ongoing financial relationships, THEN "mult-nut" payments and eCash herd obscurity and liquidity will arrive. The size of both the herd and those joining/leaving it must grow over time before they'll become effective forms of financial camouflage.
Ecash is a proven protocol, but integrations with LN, Nostr, and businesses will take time to spread enough to grow both the on-off ramps and the anonymity set.