Problem
Bitcoin usage has declined on darknet markets and replaced by monero.
Research
Main reason for low usage is privacy and not on-chain fees. A user recently posted on reddit asking if bitcoin is not considered safe anymore and most comments suggest using monero.
Some DNMs are custodial and the biggest market recently did an exit scam. Owner was arrested by LEA on 20 May 2024. A few of them even use multisig. I have avoided sharing names or links for any DNM however, things can be verified, researched etc. on forums like dread.
Solution
In last few months I have observed that some developers are trying to find a use case for eCash and experimenting with different things: dollar, dlc, mining payouts, tips/zaps etc. Some even consider it as ‘the’ scaling solution and I don’t agree with it because self custody cannot be scaled by giving up self custody. I think there are some risks involved in running such mints and the only use case for eCash that makes sense is DNM.
Why is eCash perfect for DNMs?
- Some DNMs are custodial and users are okay with the risks involved
- They do not care about laws and already violating multiple laws when using the markets
- Follow better opsec
- Looking to improve their privacy
How would this work?
Mints could be run by anonymous users that already have some repuation in these markets and also active in bitcoin communities. Since most DNM users prefer on-chain we could use moksha for minting and melting. DNM owners can also run mints.
DNM and its vendors will accept eCash as payment for different products and services. This improves privacy and UX for the users with the similar rugpull risks involved. It will benefit bitcoin usage which has declined over the years, replaced by monero and also help other bitcoin privacy projects.
Coinjoin can be used before minting eCash by users and during redeem process by mints. Users can also use payjoin while spending the redeemed UTXO.
Note: Please stay anonymous if you work on any project related to DNM usage for eCash. Feel free to suggest any improvements in the post or the use case suggested for eCash.