Once fedimints are up and running we're good to go, right?
- on chain
- self custodial lightning
- custodial lightning
- physical (like Satscards, bitcoin notes, etc.)
- fedimints (distributed custody)
I think we have enough to make it work for everyone according to their ability and needs. It was never going to happen, imo, that everyone takes self custody on chain. No?
yeah was also thinking about this.
thought drivechains will help but
fedimints sound more promising.
Very excited for fedimint development. Hoping Fedi gets released soon
I have heard of Fedimints. Never understood them 100%, can some explain it to me like i am five?
As far as the user is concerned it's like wallet of satoshi but where the keys to the actual bitcoin are held in a multisig so most of the key holders would need to collude to steal the coins.
The fedimints would have lightning channels between one another and custodial services so they were all interoperable. Users themselves would technically have e- cash rather than actual bitcoin, but that's irrelevant as far as user experience is concerned.
Better privacy and less chance of rug pulls are the benefits over custodial. It'll also be cheaper and easier than the self custody options, allowing bitcoin to scale.
There would be checks and balances, audits regarding e-cash to Bitcoin? Or where does e-cash become involved with Bitcoin? Are they IOUs?
Sorry, your answer is good, but now I have more questions.
There are ideas for automated bank runs to keep them honest. It really hinges on the key holders being chosen well, though - people of standing in their local communities so they can be held accountable if there is a problem.
When you compare it to a regular custodial arrangement the fedimints seem clearly superior. Say you'd need 7 of 10 corrupt key holders who are ready to collude don't care about the consequences.
Also, any failures (fraud) would be highly localised with this model and obviously the actual supply of bitcoin would remain unaffected.
