Fedimint’s community custody builds on social trust. Communities form federations with trusted members, helping make Bitcoin accessible through shared responsibility. It supports regions with limited financial access, fostering local use.
Discussion
⚒️ How does guardianship work? Respected community members form a federation, holding multisig keys. A majority must agree to move funds, preventing any single point of failure. Blind signatures keep guardians from accessing individual balances, protecting user privacy.
Deposits in Fedimint involve sending Bitcoin to a multisig wallet controlled by guardians. Users receive eCash tokens, backed 1:1 by Bitcoin. Blind signatures ensure privacy—guardians can’t trace tokens, keeping user data hidden.
Within a trusted circle, Fedimint enables instant, off-chain transactions using eCash tokens. This reduces blockchain load, making payments efficient and private for community members—no on-chain fees or delays.
Note 6 :
🌍Fedimint also enables payments outside the community. A gateway into the Lightning network enables global transactions, allowing members to send or receive Bitcoin worldwide effortlessly.
🔄Accessing funds is also straightforward. Users can redeem eCash tokens anytime to withdraw Bitcoin from the federation’s multisig wallet, keeping Bitcoin within reach.