Fedipool: Fedimint Could Mitigate Bitcoin Mining Pool Concerns
Current Fedimint development is focused on easy to use consumer wallets that could replace usage of major custodial wallet providers such as Binance and Wallet of Satoshi, but what if the same tech was used to replace major custodial mining pools such as Foundry and AntPool.
Such a cool idea
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that is opening the door of the fractional reserve in bitcoin. It is to repeat the same vices of the inherited system.
Could you expand a bit more? Followed 🫡 #plebchain
The federated are given a kind of btc paper called fm-sats.
When someone from the federation wants to pay a merchant outside of it, what he does is "sell" the corresponding amount of fm-sats, and the federation sends the merchant real sats.
It is impossible to control that the federations do not issue more fm-sats than the collateral they have, then secondary markets for fm-sats are organized and thus we already have much more paper sats than real sats.
Exactly what the banks did in the days of the gold standard.
Wow, definitely need to keep an eye on this then. Didn’t know about the creation of “fm-sats” aka fake bitcoin. Thanks for explaining, about to zap ⚡️
This is certainly true, but the reason fedimint is such a major upgrade from the current system is the majority of the signing quorum has to be involved to issue more fm-sats then sats in reserve. So it is very much like Gold banking from the 18th century. As long as you trust the bank (mint) then you can leave your money there. One of the big differences from the gold system banking and fedimint is money can be zapped out of mints at the speed of light (with the permission of the majority of the quorum). This doesn’t reduce the trust model, but it may mean these rehypothication schemes get snuffed out faster. I am assuming that money moves in and out of different fedimints as people find better UX or a more trusted group. Since money flows quicker, there is less time to build up considerable rehypothication.
But who knows, I may be wrong.
#plebchain #bitcoin
Thanks for adding to the conversation! Just zapped you. Keep adding good content.
Followed
#plebchain #zap #spraysats
Rather, you have sent me an invoice so that I can zapp you... jajaja
lnbc1p37arnypp5d0zwq0fkvapky8av3xmvm09d508y7x7dfa2ygd09u3qejaqmpqgqdqu2askcmr9wssx7e3q2dshgmmndp5scqzpgxqyz5vqsp55eu6r9a6vcr4nyeh63f3wrkzpkru5dhuygh3xzmrh4936y50xcvq9qyyssqeq2vhhsv4sd5cjhxgma69dsan4wy3lnky32hmwvute2n5eyg70kx50q77j628ljh6m7qr78szpauqaze93v27dk5k52g39cze56vfmqqnrd2vd
Boom
Do you want me to pay you? hahaha
Only if you want to, just responding with an invoice to your last post.
Zaps shooting everywhere
I thought zapps were given, not requested... hahahahaha
*Uno reverse card* 🔄
They are haha, I’ll zap you again for the trouble with the invoice🫡
😅😅😅😅😅😅😅 once again you have sent me an invoice so that I can pay you...
😂
Maybe drop an invoice yourself?
😂😂😂😂😂
I’m so lost 😂 more sats coming your way
😂😂 Don't worry, what you are doing is sending an invoice to me so that I can pay you... you are not sending me a payment.
Double check, sats are leaving my wallet.
Well, they don't go to mine, hahahaha, I paid you the one for 10 sats, so you can see that they are bills for me to pay you..
Where the heck are those zaps zapping to haha, double check the LNURL attached to your account
Everything is correct, I just sent 500sats to my LNURL account and they have arrived without a problem...
Followed 🫡 #Plebchain
Where is the best place to get a better understanding of Fedimint?
https://fedimint.org/docs/intro
will probably do a write up myself on https://discreetlog.com as well
Nice article here too.
Peter McCormack had a good conversation about it, if audio is your thing.
Thanks
what benefits does this have over stratumv2? briefly glanced and they more or less seem to be tackling the same problem, the biggest of which is the pool operator constructing the block
seems this is proposing guardians construct blocks, whereas i think stratumV2 has each miner constructing a block, iirc
yea, it would be complementary to stratumv2.
guardians would construct the blocks, individual miners in the pool could choose which guardian constructs their blocks.
custodial risk would be reduced over a traditional pool setup. privacy of individual miners improved + easy lightning withdrawals for mining rewards.
Ive been hearing about stratumV2 for years... hopefully it gets some support now🤦♂️
there is an open grant to have someone work on it from spiral or square crypto, can’t remember which one. tell all your rust frens about it
interesting, although i’m not seeing the benefit of having guardians construct blocks vs having individual miners construct blocks (which is what stratumV2 is proposing)
You could probably set it up so all miners in the pool construct their own blocks as well. Just think it is more practical to expect five to seven miners (however many guardians are chosen) in a pool to run their own node and do block construction than every miner.
right, but i think that’s still stratumV2 haha. basically you need 1 or more miners behind a bitcoin core node, and the core node creates block templates. the benefit i see here is you can choose for yourself in stratumv2 how cooperative vs decentralised you want to be.
not saying fedipool is a bad idea, or stratumv2 is better. just trying to understand if fedipool adds anything new, and it doesn’t seem like it does. but maybe fedipool gets more traction?
It reduces custodial risk, improves privacy, and adds easy lightning withdrawals that the pool operators do not have to manage themselves.
Well you can't have fedipool without StratumV2 so the latter is a must. fedipool helps further decentralize pools. Even with V2 a pool could technically reject the block sent by miners and use their own( I think), Fedipool would spread that responsiblity onto multiple guardians (essentially many pool operators) which should reduce the risk.
Please being ecash adds privacy to a miner's payouts. It's an interesting concept.
**plus being chaumian ecash adds....
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Interesting for sure
You are always bringing it! So I had to bring a Zap your way…⚡️🙏🏻
Amazing. I have been hearing about Fedimint and other eCash tech for a while. Today was my first time to try it out via cashu, and I am now super bullish on all things related. Fedipool? YES PLEASE.
Honestly this kind of thing should get way more coverage than the JPEGs.
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Interesting article, I was curious about one point: it says funds can't be seized if 2 parties are honest; afaik Fedimint started out with the old Gennaro/GKJ style threshold key generation, which is a bit funky in how its threshold security properties work (I actually raised this point with elsirion on discord (don't laugh) ... then it seems they followed up a bit, see: https://github.com/fedimint/fedimint/issues/760 ), so I'm not sure if it's already done, but they definitely want to use FROST. This avoids weird problems with majority (say, 9 of 13) threshold signing, which is what you want. But why does it say 2 there? I think I missed something.
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