What is n3xB?

n3xB stands for 'naive Nostr no-KYC exchange for Bitcoin'. n3x is a layer 2 protocol to be ran on top of the Nostr protocol, designed to standardize and facilitate asynchronous exchanges of any kind by utilizing the concept of a fidelity bond. n3xB is a specific implementation of n3x designed to facilitate the exchange of Bitcoin and any other off-chain settlement solutions. The ultimate goal is to create an open protocol for Bitcoin/fiat exchange that can easily be used by mobile clients, and an inter-operable global orderbook with censorship resistance and decentralization properties as afforded by the Nostr relay network.

Why?

Bitcoin as a monetary network have been highly resilient and successful over the past decade. Numerous innovations within the Bitcoin ecosystem have been achieved, including but not limited to the Lightning Network, multi-signature custodial solutions, along with Taproot, laying the groundwork for trustless prediction markets.

What remained a weak point for Bitcoin however is the on-ramp and off-ramps to get into and and out of the network. The highest volume interfaces into and out of Bitcoin have by far been centralized custodial corporations. In particular, all these corporations rely on regulated banking rails that are easily identifiable as Bitcoin(and crypto) on-ramps and off-ramps. Sweeps by regulators in China, United States, and other jurisdictions have successfully created chilling effects, if not significant paralysis in the ability for Bitcoin users to go back and forth towards the traditional economy, which at the time of writing, is still overwhelming conducted via government fiat currencies. As the fiat financial system inevitably heads toward dysfunction, the demand to seek escape into alternative solutions will increase. With that however, it will also bring increasingly vehement attacks by the incumbent fiat institutions, with expected concentration via the choke points that is of the fiat on-ramps and off-ramps (i.e. exchanges and crypto/Bitcoin friendly banks).

Usable and decentralized methods to go between the Bitcoin ecosystem and the fiat economy is thus of paramount importance to sustain the momentum that Bitcoin has in racing to avoid the otherwise inevitable war. While there are several solutions to do so today, most notably Bisq and RoboSats, amongst others. None of these gateways have managed to capture significant volume when it comes to exchanging between fiat and Bitcoin. There are multiple potential reasons why significant adoption was not achieved by many of these gateways, including usability and frequent regulatory crackdown on web based platforms. Architecture choices not conducive to inter-operability and separation of concerns also limited the pace of innovation and development resources available to these solutions.

The ideal Bitcoin / fiat gateway must be censorship resistant, private, self-custodial, open to collaborative development, and practically usable to the masses, not just to those already deep in the Bitcoin ecosystem. The solution shall become the go-to on-ramp when an existing Bitcoin veteran orange pills a beginner.

How to make n3xB a reality?

As seen in the recent rapid innovations in the decentralized communication space achieved by Nostr, it opened many people's eyes in how an extremely simple, perhaps even naive protocol can enable hundreds of developers to create ingenious inter-compatible solutions. The end result is an emergent common network effect that benefits all players in the ecosystem.

n3xB strives to leverage the decentralized, redundant, and censorship resistant relay architecture as pioneered by Nostr, and create a layer 2 protocol on top. This is not only for a single solution to be built, but to allow many inter-compatible solutions to be created that gets ever closer to the ideal Bitcoin / fiat gateway. Instead of developers and entrepreneurs building their own closed and silo'ed exchange orderbook, they can instead work together in a synergistic manner through a common protocol and a Nostr relays supported global orderbook. New and innovative liquidity solutions and providers can also plug into this global orderbook, in bid to take up significant volume share from the currently centralized and custodial exchanges and fiat banking rails.

A very simple and naive protocol proposal have been started as a repository at Github. Please also see the Contribute page for the most up to date information in what expertise might be needed in help solving this vital and critical Bitcoin on-ramp problem.