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WP-04 · Nostr Whitepaper

Nostr: Decentralised by Design

An open protocol for signed messages, identity and data that no single server controls, and the decentralised products SBC builds on it.

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Version
1.0
Published
October 2026
Reading time
18 min read
Author
SBC Engineering

Nostr is a simple, open protocol in which every message is a signed event and relays are interchangeable servers that store and forward those events. Identity is a key pair that the user owns, not an account on someone else’s platform. This whitepaper explains how Nostr works, from keys and events to relays and the NIP specifications, why it matters to organisations, how SBC runs private, compliant Nostr infrastructure for the enterprise, and the decentralised products we build on it: secure messaging, verifiable approvals and signatures, portable identity and resilient communication between companies.

  • Identity you own: a key pair
  • Every event signed and verifiable
  • Relays: no single point of failure
  • Private, authenticated enterprise relays
  • Integrated with SBC ERP
  • Open standard, no lock-in

Why Nostr

Almost every digital conversation today runs through a platform that owns the account, stores the data and decides the rules. If the platform changes its terms, suffers an outage, is blocked in a country or simply closes, users lose their identity, their history and their contacts at once. Organisations face the same risk with the messaging, notification and signing services they depend on.

Nostr, short for Notes and Other Stuff Transmitted by Relays, takes a different approach. Your identity is a cryptographic key pair that you hold. Everything you publish is a small, signed event. Events are sent to relays: simple servers that anyone can run, which store events and forward them to subscribers. Because every event carries its author’s signature, it can travel through any relay and still be verified by anyone. No relay can forge, alter or censor your identity, and if one relay disappears, the others carry on.

For SBC, Nostr is the fourth pillar alongside our ERP, AI and blockchain practices. It gives us an open, lightweight foundation for decentralised products, from secure messaging to verifiable approvals, that organisations can run on their own infrastructure without depending on any single provider.

  • Clients: web, mobile, SBC ERP
  • SBC private relays
  • Partner & public relays
Signed events (NIP-01)
Nostr networkKeys = identity

What makes Nostr different

  • Identity belongs to the user or organisation, not to a platform: it is a key pair that works with any Nostr application.
  • Every event is signed, so authenticity is checked by the reader, not trusted to a server.
  • Relays are interchangeable: publish to several, read from any, and move freely between them.
  • The protocol is open and minimal, defined in public specifications called NIPs, with many independent implementations.
  • No tokens, no mining and no blockchain fees: Nostr is fast and inexpensive to run.

The problem with platforms

  • Accounts, contacts and message history are locked inside one provider’s platform.
  • A single outage, policy change or block can silence an organisation’s communication.
  • Users must trust the server not to read, alter or fabricate messages.
  • Integrating partners means building one-off connections to each of their systems.
  • Signatures and approvals depend on proprietary services that are hard to verify independently.

How Nostr works

The entire protocol rests on three elements: keys that identify people and organisations, signed events that carry every piece of data, and relays that store and deliver those events. Everything else is built from these, and specified in short, public documents called NIPs.

Keys are identity

A Nostr identity is a key pair on the secp256k1 elliptic curve, the same cryptography that secures Bitcoin. The public key, usually shown in the npub format, is your identity: anyone can see it and use it to verify what you sign. The private key, the nsec, proves that you are you, and is the only thing that must be protected.

Because identity is a key, not an account, it works in every Nostr application and cannot be suspended by a server. Keys can be linked to a readable address on your own domain, such as finance@company.om, so partners can see that a key really belongs to your organisation. In the enterprise, private keys live in a secure signer or hardware module rather than on employees’ devices.

Public key (npub)

Your shareable identity. Clients use it to find your events and to verify your signatures.

Private key (nsec)

Proves authorship. Held in a browser signer, a mobile wallet, or a remote signer backed by an HSM.

Readable addresses

NIP-05 links a key to name@yourdomain, verified through your own website.

Remote signing

NIP-46 keeps keys in a dedicated signer that applications ask to sign, so keys never touch the app.

Signed events

Everything in Nostr is an event: a small JSON object with the author’s public key, a timestamp, a kind that says what the event is, tags that link it to other events, people or references, and the content itself. The event’s id is the SHA-256 hash of all of these fields, and the author signs that id with a Schnorr signature.

The result is a self-verifying record. Any client can recalculate the id and check the signature using only the public key, without asking a server. Change a single character and both the id and the signature break. The demonstration below generates a real key pair and signs a real event in your browser.

Interactive · real BIP-340 signatures

Sign a Nostr event in your browser

A key pair is created on this page and never leaves it. Sign an approval, then try to change a single character and see the signature fail.

Your identity
Public keygenerating…
Private keynsec1 ••••••••••••• kept in this browser only
kind 1#approvalref PO-10482
Signed event (NIP-01)
{
  "content": "Press “Sign event”…"
}
Not signed yet

Sign the event to see its id and signature.

Relays

Relays are the servers of Nostr, and they are deliberately simple. A client connects over a WebSocket, sends events to publish them, and sends subscriptions, filters such as “events of these kinds by these authors since yesterday”, to receive matching events as they arrive. Relays do not talk to each other and do not need to agree on anything.

Clients usually publish to several relays and read from several. Each user announces their preferred relays in a public list, so others know where to find them. If a relay is slow, full or offline, the same signed events are available elsewhere. Relays can also set their own policies: who may write, who may read, how long data is kept and what it costs, which is what makes private enterprise relays possible.

How relays workLIVE

Signed once, delivered by many relays

Relays are simple servers that store and forward signed events. Because every event carries its own signature, any relay can deliver it and nobody has to trust the relay.

1. Author: Event signed and published. The approval is signed with the author’s key and sent to every relay on the author’s relay list at the same time. 2. Relays: Stored independently. Each relay checks the signature and stores the event. No relay can change it without breaking the signature. 3. Subscribers: Delivered and verified. SBC ERP and the auditor receive the event from whichever relay they subscribe to, and verify the signature themselves. 4. Private relay: One relay goes offline. A relay can fail, be blocked or be switched off. Nobody depends on a single server. 5. Author: The next event still flows. The next approval is published to the remaining relays and reaches every subscriber, intact and verifiable.SIGNEDFinance managerSigns an approvalSBC private relayMuscat · NIP-42 authOFFLINEPartner relayOperated by the supplierBackup relaySecond data centreSBC ERPProcurement module✓ VERIFIED✓ VERIFIEDAuditorRead-only client✓ VERIFIED✓ VERIFIEDNo single point of failure · no trusted serverEVENT: APPROVAL PO-10482 · SIGNED BIP-340
  1. 1
    AuthorEvent signed and published

    The approval is signed with the author’s key and sent to every relay on the author’s relay list at the same time.

  2. 2
    RelaysStored independently

    Each relay checks the signature and stores the event. No relay can change it without breaking the signature.

  3. 3
    SubscribersDelivered and verified

    SBC ERP and the auditor receive the event from whichever relay they subscribe to, and verify the signature themselves.

  4. 4
    Private relayOne relay goes offline

    A relay can fail, be blocked or be switched off. Nobody depends on a single server.

  5. 5
    AuthorThe next event still flows

    The next approval is published to the remaining relays and reaches every subscriber, intact and verifiable.

  • Signed event
  • Relay
  • Stored · verified
  • Relay offline

The protocol, in NIPs

Nostr is specified in Nostr Implementation Possibilities, or NIPs: short, public documents that each define one feature. Clients and relays implement the NIPs they need, and announce which ones they support. These are the ones that matter most for organisations.

  • Core protocolEvents, signatures, subscriptions and readable key formats.

    NIP-01 defines the event structure, how the id is calculated and signed, and the messages exchanged between clients and relays. NIP-19 defines the npub and nsec formats and shareable links. Every Nostr application implements these.

    How it works
    1. 1Create event
    2. 2Hash
    3. 3Sign
    4. 4Publish
    5. 5Subscribe & verify
    Standards & frameworks
  • Identity & signingReadable identities and keys kept safely away from apps.

    NIP-05 maps keys to addresses on your domain. NIP-07 lets websites ask a browser extension to sign, and NIP-46 lets any application request signatures from a remote signer, so private keys can be held in a secure service or HSM.

    How it works
    1. 1Register key
    2. 2Link domain
    3. 3Connect signer
    4. 4Sign on request
    Standards & frameworks
  • Private messagingEnd-to-end encryption that also hides who talks to whom.

    NIP-44 defines the audited encryption used between keys. NIP-17 builds private direct and small-group messages on it, and NIP-59 gift-wraps each message so relays cannot see the sender, recipient or exact time.

    How it works
    1. 1Encrypt (NIP-44)
    2. 2Seal
    3. 3Gift-wrap
    4. 4Deliver
    5. 5Decrypt
    Standards & frameworks
  • Relays & groupsAuthenticated relays, relay discovery and managed groups.

    NIP-42 lets a relay require clients to prove their key before reading or writing, the basis of private relays. NIP-11 describes a relay’s policies, NIP-65 tells others which relays a user uses, and NIP-29 defines groups whose membership is enforced by the relay.

    How it works
    1. 1Discover relay
    2. 2Authenticate
    3. 3Join group
    4. 4Read & write by policy
    Standards & frameworks

Nostr for the enterprise

Public Nostr is open to everyone. Organisations need the same strengths, signed data, portable identity and no single point of failure, together with access control, data residency, retention and integration with their business systems. SBC provides exactly that combination.

SBC operates private, authenticated relays that only an organisation’s members and invited partners can use, hosted in Oman or on the customer’s own infrastructure. Keys are issued and held in a remote signer under the company’s policies. Events from these relays flow into SBC ERP, so an approval signed on a phone becomes a recorded, verifiable step in a business process.

How it works

Anatomy of a signed approval between two companies

  1. Approval requested

    SBC ERP

    A purchase order for OMR 18,250 needs the supplier’s confirmation. SBC ERP publishes a request event to the shared relays.

  2. Reviewed on any device

    Supplier

    The supplier’s sales manager receives the request in their Nostr app and reviews the order details.

  3. Signed under policy

    Remote signer

    The confirmation is signed by the supplier’s remote signer, which checks the manager’s role and limits first.

  4. Delivered through several relays

    Relays

    The signed event is published to SBC’s private relay and the supplier’s relay, so delivery never depends on one server.

  5. Verified and recorded

    SBC ERP

    SBC ERP verifies the signature against the supplier’s registered key, updates the order and stores the event as evidence.

  6. Provable for years

    Audit

    Anyone with the public key can verify the confirmation later, independently of SBC and of both companies’ systems.

ResultTwo companies exchange a legally meaningful, independently verifiable approval in seconds, with no shared platform and no single point of failure.

Private relays

Authenticated relays (NIP-42) with membership, roles, retention and rate limits, hosted in Oman or on-premise.

Key custody

Keys held in a remote signer (NIP-46), optionally backed by an HSM, with policies, approvals and recovery.

Verified organisations

Company identities published on the company’s own domain (NIP-05), so partners can trust who they deal with.

ERP integration

Events become records and workflow steps in SBC ERP, and ERP actions can publish signed events.

Compliance & retention

Archiving, legal hold and export of events, aligned with Oman’s data protection and electronic transactions laws.

Monitoring

Relay health, delivery, storage and abuse monitored around the clock, with alerting and incident response.

What SBC builds on Nostr

Nostr lets us build products that keep working when servers fail, that never hold users hostage, and whose every record can be verified independently. These are the decentralised products and capabilities SBC delivers on the protocol.

Process map

A tender, run over signed Nostr events

  1. 1Buyer
    Tender publishedSigned notice event
  2. 2Relays
    DistributedStored on several relays
  3. 3Bidders
    ClarificationsEncrypted questions
  4. 4Buyer
    Answers to allSigned addendum
  5. 5Bidders
    Bids sealedEncrypted, time-stamped
  6. 6Relays
    DeadlineGateLate events rejected
  7. 7Committee
    OpeningBids decrypted together
  8. 8Committee
    EvaluationScores signed
  9. 9Buyer
    AwardGateSigned award event
  10. 10Audit
    VerificationFull history checked
  • Buyer SBC ERP · Procurement
  • Relays Private · partner
  • Bidders Nostr app · signer
  • Committee SBC ERP · Evaluation
  • Audit Read-only client
  • GateApproval or control gate

Secure messaging

End-to-end encrypted direct and group messaging (NIP-17, NIP-44) on private relays, with metadata protection and company-controlled identities.

Electronic signatures

The e-signature capability in SBC ERP signs documents and approvals as Nostr events, verifiable by anyone with the signer’s public key.

Portable login & identity

Sign in to SBC and partner applications with a Nostr key instead of another password, using browser or remote signers.

Inter-company messaging bus

Orders, confirmations, status updates and notifications exchanged between companies as signed events, without point-to-point integrations.

Verifiable publishing

Announcements, price lists, tenders and policies published as signed events, so recipients can prove what was said and when.

Communities & channels

Relay-based groups (NIP-29) for partners, contractors or customers, with membership and moderation under your control.

Security, privacy & governance

Nostr moves trust from servers to keys. That makes it more resilient and more transparent, and it makes key management, relay policy and data protection the centre of a secure design.

Keys protected

Private keys in remote signers or HSMs, never on servers that store events, with rotation, revocation and recovery procedures.

Encrypted by default

Private content encrypted end to end with NIP-44 and gift-wrapped so relays see neither content nor participants.

Access control

Private relays require authentication and enforce who may read and write, per group and per kind of event.

Data protection

Personal data minimised and kept on in-country relays under Oman’s Personal Data Protection Law; public relays are used only for public content.

Abuse & spam control

Rate limits, allow-lists and moderation on every SBC relay, with optional proof-of-work for open relays.

Independent verification

Every event remains verifiable with open-source tools, so auditors never depend on SBC to prove a record.

Delivery & outcomes

SBC introduces Nostr step by step, starting where it removes the most friction, often secure messaging or signed approvals with partners, and extending from there on the same relays and keys.

Delivery roadmap

  1. Discovery

    2 weeks

    Identify the conversations, approvals and partner exchanges where independence and verifiability matter most.

  2. Foundation

    3–4 weeks

    Deploy private relays, the remote signer and organisation identities, and connect them to SBC ERP.

  3. First product

    4–8 weeks

    Roll out secure messaging or signed approvals to a pilot group and their partners.

  4. Scale

    Ongoing

    Add partners, groups and use cases on the same infrastructure, with 24/7 operation and support.

Business outcomes

  • Communication that keeps working when any single server or provider fails.
  • Identities and history owned by the organisation, portable across applications.
  • Approvals and signatures that anyone can verify, years later, without a central service.
  • Partners connected through one open protocol instead of many custom integrations.
  • Lower cost and no lock-in, on infrastructure you can run yourself.

Ready to explore Nostr for your business?

Book a free consultation and our team will map these capabilities to your operations.