Fedi is a Bitcoin startup and mobile application that provides decentralized Chaumian e-cash powered by the open-source Fedimint protocol. Unlike traditional centralized digital cash systems, Fedi utilizes a federated model where a group of independent operators, known as Guardians, jointly custody user funds in a multi-signature wallet, eliminating the need to trust a single entity.
Key features of the Fedi e-cash system include:
Privacy: Transactions use blinded signatures, ensuring that the mint and other users cannot see account balances, sender/receiver identities, or transaction history.
Scalability: By moving transactions off the Bitcoin base layer, Fedi enables instant and free (or low-cost) payments within the federation and via the Lightning Network.
Custody & Recovery: While it offers a custodial user experience for ease of use, it provides safeguards against bad actors. It also supports account recovery through community assistance if users lose their private keys.
Modularity: The underlying Fedimint protocol allows for various financial modules, Fedi is a Bitcoin startup and mobile superapp that implements Fedimint, an open-source protocol for federated Chaumian e-cash. This system allows users to transact with strong privacy and near-instant speeds by moving activity off the Bitcoin base layer, while maintaining security through a decentralized network of trusted operators known as Guardians.
The protocol addresses the centralization flaws of early digital cash (like David Chaumâs original Digicash) by using a multi-signature wallet controlled by a federation of Guardians rather than a single entity. This structure ensures that no single party can access user funds or transaction history, providing a custodial user experience with the checks and balances of decentralization.
Key features of the Fedi e-cash ecosystem include:
Privacy-Preserving Transactions: Uses blinded signatures to ensure the mint cannot link e-cash notes to specific users or track transaction histories.
Lightning Network Integration: Enables seamless conversion between on-chain Bitcoin, private e-cash, and Lightning payments for global scalability.
Community-Centric Custody: Users can create or join local federations (e.g., for neighborhoods or organizations) to manage funds collectively, reducing reliance on centralized exchanges.
Account Recovery: Offers social backup mechanisms where community Guardians can help users recover wallet access if private keys are lost.
Modular Architecture: Supports the development of custom financial modules, such as FediPool or Stability Pools, allowing communities to build tailored financial services on top of the e-cash layer.
âThe largest Ethereum layer 2, which has also been regularly praised by Vitalik as being the most decentralized L2, just froze $100m worth of ETH that was hacked by criminals.â
And bitcoin is debating freezing non-quantum safe wallets. Tainted bitcoin addresses are also blocked to some extent.
In the end all blockchains can in one way or another do blocks.
Do I like all this, nope, but it is what it is.
For Autonomi to move to another chain now is to delay the project even further, cause a lot of confusion and/or effort on everyoneâs part to do the whole conversion process again and/or expend cost to do swaps
Debating freezing wallets and actually being able to do it are very different things. And many bitcoiners are already ridiculing the idea of doing that and some calling it an attack on bitcoin⌠which it is. It is a ridiculous idea.
Bitcoin is very hard to change and that is a feature not a bug.
There are no addresses that miners wonât add to a block, Yes, some mining pools tried, but quickly had to stop it due to miners leaving the pool.
Debating in an open source project is good. Even fights like the block size wars are good. Eventually there is consensus. If it is easy to change the protocol then it is a very weak âdecentralizedâ system.
Bitcoin so far has survived all attacks, which has made it very strong and very decentralized. But the fight isnât over.
As i said in my post above:
âIâm okay with Autonomi using ARB or the like until the network is running well and with no chance of another reboot like weâve just seen. It makes sense. But there is no way it is the final solution unless ARB becomes neutral and decentralized.â
My main point above is how this system should definitely not be relied on long term, and offered a possible solution⌠for the future. It would be nice if someone here looked into it at some point.
Now imagine them announcing they resume emissions (which I think they will eventually, as not enough people will upload data to motivate the node-runners through rewards only). 15-20 cents. No marketing and no non-braindead approach to tokenomics will result in yet another roundabout of false hopes.
