Keeping Bitcoin Within Trusted Circles:
Fedimint Supports Community Custody 🪙 by enabling communities to hold Bitcoin together in a decentralized way. It’s built for trusted circles to help manage funds securely and privately.
Discussion
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.
⚒️ 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.