Frequently Asked Questions
Common questions about finance on Nostr.
General
What is Nostr?
Nostr (Notes and Other Stuff Transmitted by Relays) is an open protocol for decentralized, censorship-resistant communication. It uses public-key cryptography for identity and messages are transmitted through relays.
Is Nostr a cryptocurrency?
No. Nostr is a communication protocol, not a cryptocurrency. However, it integrates with Bitcoin and Lightning Network for payments.
How is Nostr related to Bitcoin?
Nostr and Bitcoin:
- Use the same cryptography (secp256k1)
- Are both decentralized protocols
- Complement each other (communication + value)
- Share similar philosophies
Payments
What are zaps?
Zaps are Lightning Network payments tied to Nostr events. When you "zap" someone, you send them Bitcoin via Lightning while creating a public receipt on Nostr.
How do I send zaps?
- Set up a Lightning wallet (like Alby)
- Connect it to your Nostr client via NWC
- Click the lightning bolt on any post
- Choose an amount and confirm
Can I receive zaps without running a node?
Yes! You can use custodial services like Alby or get a Lightning address from various providers. You don't need to run your own node.
What are NutZaps?
NutZaps are Cashu eCash payments sent via Nostr. They offer more privacy than Lightning zaps since amounts can be hidden.
Are zaps public?
Yes, standard zaps are public. The amount, sender, and recipient are visible on Nostr. For privacy, consider NutZaps.
Wallets
What is NWC (Nostr Wallet Connect)?
NWC is a protocol that lets Nostr apps communicate with Lightning wallets. You generate a connection string in your wallet and paste it into apps to enable payments.
Which wallet should I use?
For beginners:
- Alby - Easy browser extension
- Primal - Built-in wallet
For more control:
- Alby Hub - Self-custodial
- Zeus - Mobile with node connection
Is Cashu custodial?
Yes, Cashu mints are custodial - they hold the Bitcoin backing your tokens. Only use amounts you're comfortable risking with any given mint.
Can I use hardware wallets with Nostr?
Hardware wallet integration is still developing. Some projects are working on Ledger apps for Nostr key management.
Privacy
How private are Nostr payments?
| Payment Type | Privacy Level |
|---|---|
| Zaps | Low (public amounts) |
| Anonymous Zaps | Medium (sender hidden) |
| NutZaps | Higher (amounts can be hidden) |
| Direct Lightning | Varies by route |
Can I use Nostr anonymously?
You can create anonymous accounts easily. However, if you tie them to payments or other identifying data, privacy decreases.
Does the relay see my payments?
Relays see encrypted NWC messages but can't read contents. They see zap receipts as public events.
Security
How do I protect my keys?
- Never share your nsec (private key)
- Use NIP-07 extensions for signing
- Store backups offline
- Consider hardware wallets for large amounts
What if I lose my keys?
There's no recovery option. If you lose your private key:
- You lose access to that identity
- Any funds tied to it are lost
- You'll need to create a new identity
Can someone steal my Bitcoin through Nostr?
Your Nostr private key doesn't directly control Bitcoin. However:
- NWC connections have spending permissions
- Set budgets on NWC connections
- Revoke unused connections
Technical
What's the difference between NIP-15 and NIP-99?
NIP-15: Structured e-commerce with stalls, products, and defined order flow NIP-99: Flexible classified listings for any type of offer
Do I need to run a relay?
No, but it can be beneficial:
- Guaranteed access to your data
- Privacy from third parties
- Support the network
How do I verify zap receipts?
// Check:
// 1. Receipt signature is valid
// 2. Description contains valid zap request
// 3. Zap request signature is valid
// 4. Tags match between request and receipt
Business
Can I accept Bitcoin payments on Nostr?
Yes! You can:
- Add a Lightning address to your profile
- Set up a NIP-15 marketplace stall
- Create NIP-99 classified listings
- Accept direct Lightning payments
Are there fees for zaps?
- No Nostr protocol fees
- Lightning routing fees (usually minimal)
- Some services may charge
How do subscriptions work on Nostr?
NIP-88 (draft) defines recurring zaps for subscriptions. Not fully standardized yet, but some apps implement it.
Comparison
How does Nostr compare to Patreon?
| Feature | Nostr | Patreon |
|---|---|---|
| Platform fee | 0% | 5-12% |
| Payment method | Bitcoin | Credit card |
| Censorship | Resistant | Platform controlled |
| Identity | Cryptographic | Email/password |
Is Nostr better than Lightning apps?
They're complementary:
- Nostr = Social/identity layer
- Lightning = Payment layer
Together they're more powerful than either alone.
Getting Help
Where can I get support?
- Ask on Nostr (search for developers)
- GitHub issues on relevant repos
- Community channels
How can I contribute?
- Improve documentation (like this site)
- Report bugs
- Build applications
- Run relays
- Donate to developers
Ask on Nostr! The community is helpful and developers are often directly accessible.