Exciting Developments In Nostr Part 1 – This Is Happening On Nostr!
We begin almost every article with this message: Nostr is not merely a social media app; It’s an entire protocol that embodies the internet as it should have been — decentralised, user-centric, resistant to censorship, and bottom up. We continue to emphasise this message because social media is not the only application for Nostr. There are numerous intriguing potential implementations.
Avoid focusing on a single tree and missing the entire forest. We recognise that censorship-resistant social media is exceedingly important in these times and is an effective means to kickstart the network. However, we believe that the most captivating applications birthed from Nostr will not be social media apps.
In this series of articles, we will discuss the most fascinating developments we observe within the Nostr protocol. If we’ve overlooked anything, please notify us in the comments below and we will look into it. We may include it in a future post!
Nostr Assets
Nostr Assets is a protocol that enables the import of Taproot assets from the Lightning Network into the Nostr protocol. This feature allows users to transact these assets over the Nostr network using the Nostr private key (?). These assets can range from stablecoins and NFTs to any type of token you can imagine. As every transaction is conducted over the Lightning Network, settlements are global and instantaneous.
Once imported, the Nostr assets are managed by Nostr keys. This means they can technically be held and transferred within the Nostr network using a Nostr signing device, which is exactly what we expect will be possible very soon.
With Nostr’s potential to eventually serve as a global order book, it could evolve into a genuine Decentralised Exchange (DEX) boasting global liquidity, trustless instant settlement, and direct usability from any Nostr-compatible hardware wallet. Coupled with Nostr’s identity (?) and future reputation systems, this provides an excellent foundation for genuine DeFi, free from the shortcomings currently present in the DeFi market (shitcoinery and greed) and a massive network effect due to its global liquidity.
For more information: nostrassets.com
Nostr Peer-to-Peer Markets
Often, peer-to-peer markets are established by centralised entities. Over time, these markets can lose their value due to regulatory measures, being compelled to implement Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols. Ironically, the avoidance of such regulations is frequently a primary use case for peer-to-peer markets. Civkit, a proposed solution to this predicament, aims to establish a peer-to-peer market protocol that fosters a truly global and unrestricted online marketplace.
Utilising a combination of Nostr, Bitcoin Miniscript, and the Bitcoin Lightning Network, Civkit facilitates trustless trade, inclusive of escrow functions. The development of Civkit is currently ongoing. A link to the white paper can be found below for more in-depth understanding.
Follow this link to read the whitepaper: Civkit Whitepaper
Data Vending Machines (DVMs)
DVM, or Data Vending Machine, is a program usually powered by AI on a Nostr account. This program can deliver a variety of digital services in exchange for Sats. These digital services may include image creation, translations, Nostr algorithms, and AI agents, among others. The competition among DVMs will result in a global order book for digital services, which is likely to surpass all legacy services in terms of price and quality ratio.
The expectation to outcompete legacy services stems from the fact that the elimination of friction and the introduction of global competition will drive prices down, while reputation systems will ensure high-quality services. By following the link below you can find the first already operational DVMs.
Visit Vendata for more information.
Multisig and Coinjoin
Bitcoin adds significant value to Nostr by enabling Zaps (?). But Nostr also enhances the Bitcoin experience, making it safer and more efficient. The Nostr protocol can be utilised for coordination within Bitcoin applications, a feature that is particularly beneficial for Multisig and Coinjoin. Participants can send PSBTs over the Nostr protocol and get them signed by the relevant parties. Communication is facilitated through encrypted private messages within the Nostr protocol.
With these coordination features, Nostr asset support, online identity and reputation, internal marketplaces, and hardware devices for enhanced security, we can build the next generation of Bitcoin wallets, where the combination of these features makes for an amazing UX. This is extremely exciting!
Nostr multisig wallet: Munstr
Nostr Coinjoin: Joinstr
Takeaway: This is Big and Bullish!
Consider the network effect of Nostr at the protocol level. Suppose, for instance, that the DVMs take off and gain millions of users, then all social media apps, marketplaces, Bitcoin wallets and all other uses on Nostr will benefit too. The success of one use case will drive the success of other use cases! This is incredibly bullish, especially considering that the developments described in this article are extremely promising. And this is likely just the beginning of what’s to come!
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