freedomfete@npub.cash on Nostr: Obi Nwosu is a co-founder of Fedimint and a board member for Jack Dorsey’s and ...
Obi Nwosu is a co-founder of Fedimint and a board member for Jack Dorsey’s and Jay-Z’s ₿trust. In this interview, we discuss how Fedimint builds upon various innovations to create community Bitcoin banks, with the aim of fully realising Bitcoin’s potential to bank the unbanked.
Bitcoin custody's future: Fedimint's Obi Nwosu.
Fedimint is an open-source protocol aiming to create a decentralized, censorship-resistant custody system for Bitcoin. It acts as a community-run "bank," offering a middle ground between self-custody and relying on centralized exchanges.
The project addresses the challenges of Bitcoin custody, particularly for individuals in developing nations or regions with unstable regulatory environments. It offers a community-based approach to managing Bitcoin, reducing reliance on potentially unreliable third parties.
The core technology utilizes Federated Chaumian Mints, a privacy-preserving mechanism that allows for the creation and management of Bitcoin-backed tokens within a community. This enhances privacy while facilitating transactions within the network.
Fedimint aims to complete the three pillars of the Bitcoin ecosystem: decentralized store of value (Bitcoin itself), decentralized payments (Lightning Network), and decentralized custody (Fedimint).
Hyperbitcoinization as a Goal: The ultimate vision is to facilitate hyperbitcoinization, where over 50% of a community utilizes Bitcoin daily for various transactions and value exchange.
The project takes a holistic approach, addressing custody, payments, and community engagement to achieve hyperbitcoinization. This includes educational initiatives and infrastructure support.
Fedimint consists of two parts: the open-source protocol (Fedimint) and a commercial wallet (Fedi) that implements the protocol.
Federation Setup and Governance: Communities establish federations by selecting trusted members (guardians) who run the Fedimint software and manage a multi-signature wallet holding the Bitcoin backing the system. The number of guardians and the threshold required for transactions are community-defined.
Users within the federation receive tokenized representations of their Bitcoin, which can be used for transactions within the federation, providing a privacy-enhanced experience.
Transactions within the federation and with external Lightning Network users are seamlessly integrated, enabling fast and efficient payments. Lightning Service Providers (LSPs) act as gateways between the federation and the broader Lightning Network.
While the system prioritizes Lightning Network usage, it also supports on-chain transactions for withdrawals or interactions with users outside the Lightning Network.
The use of blinded signatures and the structure of the federated mint ensure a high level of privacy for users within the network.
While collusion among guardians is a theoretical risk, the project emphasizes selecting trustworthy individuals, promoting community involvement, and incorporating best practices to mitigate this risk.
The project aims to operate within existing regulatory exemptions by emphasizing community-based, non-profit operation and focusing on users with pre-existing relationships.
The project aims for widespread adoption, envisioning billions of users. Monetization will focus on the Fedi wallet, while the Fedimint protocol remains open-source.
https://youtu.be/7AN2C53X_D0
Bitcoin custody's future: Fedimint's Obi Nwosu.
Fedimint is an open-source protocol aiming to create a decentralized, censorship-resistant custody system for Bitcoin. It acts as a community-run "bank," offering a middle ground between self-custody and relying on centralized exchanges.
The project addresses the challenges of Bitcoin custody, particularly for individuals in developing nations or regions with unstable regulatory environments. It offers a community-based approach to managing Bitcoin, reducing reliance on potentially unreliable third parties.
The core technology utilizes Federated Chaumian Mints, a privacy-preserving mechanism that allows for the creation and management of Bitcoin-backed tokens within a community. This enhances privacy while facilitating transactions within the network.
Fedimint aims to complete the three pillars of the Bitcoin ecosystem: decentralized store of value (Bitcoin itself), decentralized payments (Lightning Network), and decentralized custody (Fedimint).
Hyperbitcoinization as a Goal: The ultimate vision is to facilitate hyperbitcoinization, where over 50% of a community utilizes Bitcoin daily for various transactions and value exchange.
The project takes a holistic approach, addressing custody, payments, and community engagement to achieve hyperbitcoinization. This includes educational initiatives and infrastructure support.
Fedimint consists of two parts: the open-source protocol (Fedimint) and a commercial wallet (Fedi) that implements the protocol.
Federation Setup and Governance: Communities establish federations by selecting trusted members (guardians) who run the Fedimint software and manage a multi-signature wallet holding the Bitcoin backing the system. The number of guardians and the threshold required for transactions are community-defined.
Users within the federation receive tokenized representations of their Bitcoin, which can be used for transactions within the federation, providing a privacy-enhanced experience.
Transactions within the federation and with external Lightning Network users are seamlessly integrated, enabling fast and efficient payments. Lightning Service Providers (LSPs) act as gateways between the federation and the broader Lightning Network.
While the system prioritizes Lightning Network usage, it also supports on-chain transactions for withdrawals or interactions with users outside the Lightning Network.
The use of blinded signatures and the structure of the federated mint ensure a high level of privacy for users within the network.
While collusion among guardians is a theoretical risk, the project emphasizes selecting trustworthy individuals, promoting community involvement, and incorporating best practices to mitigate this risk.
The project aims to operate within existing regulatory exemptions by emphasizing community-based, non-profit operation and focusing on users with pre-existing relationships.
The project aims for widespread adoption, envisioning billions of users. Monetization will focus on the Fedi wallet, while the Fedimint protocol remains open-source.
https://youtu.be/7AN2C53X_D0