How does it work

Powered by Nostr Assets Daemon (NAD)

What is Nostr Assets Daemon (NAD)?

The Nostr Assets Daemon (NAD) is a backend process that implements the Nostr Assets Protocol for issuing assets on the Nostr Protocol.
It serves as a wrapper for Taproot Assets (formerly known as Taro) and Lightning Network, allowing users to effectively manage their assets on Bitcoin (BTC), the Lightning Network, and Taproot using their Nostr accounts.

Features

  1. 1.
    Import Taproot Assets & Satoshi (*support for other tokens to be added in the future)
  2. 2.
    Mint Nostr Assets
  3. 3.
    Send and receive Nostr Assets
  4. 4.
    Provide separate accounts for end users
  5. 5.
    Work on both Self-Custodial and Custodial mode

Scenarios

1. Depositing Taproot Assets to Nostr Assets

Alice deposits assets from Taproot Assets Daemon (TAPD)
to Nostr Assets Daemon (NAD)
Step 1 Alice sends a private message to NAD's Nostr account with the content "receive 100 USDT".
Step 2 NAD requests its TAPD to generate a "new address" to receive the 100 USDT.
Step 3 Alice sends the asset to the "new address" on Other-TAPD.

2. Withdrawing Nostr Assets

Alice withdraws assets from Nostr Assets Daemon
Step 1 Alice generates a "new address" on Other-TAPD to receive the assets.
Step 2 Alice sends a private message to NAD's Nostr account with the content: "send to address (new address)".
Step 3 NAD requests the TAPD to send the asset to the provided address.

3. Transferring Assets within the same Nostr Assets Daemon (NAD)

Alice sends assets to Bob, who is on the same Nostr Assets Daemon (NAD) as Alice.
Step 1 Alice sends a private Nostr message to the NAD Nostr account with the content: "send 100 USDT to (Bob's Nostr Address)".
Step 2 The NAD adjusts the balances of both Alice and Bob accordingly.

4. Transferring Assets Between Different Nostr Assets

Alice sends assets to Bob, who is on a different Nostr Assets Daemon (NAD) from Alice.
Similar to withdrawing assets, a "new address" is created on another NAD for Alice to transfer her assets to.
Step 1 Bob sends a private Nostr message to the NAD he is on (NAD2), with the content: "receive 100 USDT".
Step 2 Bob's NAD requests his Taproot Assets Daemon (TAPD2) to generate a "new address" to receive the 100 USDT.
Step 3 Bob shares the "new address" with Alice.
Step 4 Alice sends a private Nostr message to the NAD nostr account she is on (NAD1), with the content: "send to address (new address)".
Step 5 Alice's NAD requests her Taproot Assets Daemon (TAPD1) to send the asset to the provided address.

Trading Modes

Nostr Assets Daemon offers 2 key trading modes to accommodate users' preferences and requirements.
  1. 1.
    Basic Mode This mode supports all essential operations, including transaction bundling, and facilitates Chat-to-Trade functionality. Users can execute trades at a rate of 1 Transaction per Second (TPS) in this mode.
  2. 2.
    Professional Mode In addition to all the features available in Basic Mode, the Professional Mode includes advanced functionalities such as JSON mode and more. Users can experience faster trading with a speed of 20 TPS in this mode. It caters to the needs of experienced individuals seeking more comprehensive options.

Nonce

A nonce (which stands for "number used once") is a random or unique value that is used only once in a cryptographic communication or protocol. It is typically a large random number or a timestamp.
In the Nostr Assets Daemon (NAD) system, each account is assigned a transaction nonce. The nonce value increments by one for every completed transaction, serving as a counter to keep track of the number of transactions sent from a specific address. However, the handling of nonce differs between the Basic Mode and Professional Mode.
In Basic Mode, NAD takes care of managing the nonce on behalf of the users. It automatically handles the incrementing and tracking of the nonce for each transaction, simplifying the process for users who prefer a more straightforward approach.
In contrast, Professional Mode allows users to manage the nonce themselves. This mode offers greater flexibility by enabling users to label transactions and execute them in a sequential order of their choice. Users can conveniently handle the nonce value according to their preferences, streamlining transaction management within the Professional Mode of NAD.