Ask SN: What are the possible downsides and vulnerabilities to Fedimint?
105 sats \ 1000 boost \ 4 comments \ @Majjin 19 Jul 2022 bitcoin
I'm very excited about this project and the newly announced wallet. I think that the Fedimint protocol can give Bitcoin users some much needed privacy enhancements until we come up with something better. However, I recognize that EVERYTHING has a cost. As Bitcoiners, we need to keep an adversarial mind set. There are tradeoffs that users of Fedi would incur in exchange for the privacy and convenience. I'd like to discuss those tradeoffs.
I'll start: It sounds to me like Fedimint is a protocol to make a more transparent, accountable, and private Bitcoin bank/credit union. The tradeoff of a bank is that you are entrusting your coins to another person. Not your keys, not your coins. People using Fedi and other services like it need to be aware of this and only give their coins to members of their own community/family that they can trust and hold accountable.
Info on Fedimint and Fedi: https://www.fedi.xyz/ https://fedimint.org/
write
preview
related posts
120 sats \ 1 reply \ @pi 20 Jul 2022
Odell and Sirion touch on this in this recent podcast episode.
reply
0 sats \ 0 replies \ @Majjin OP 20 Jul 2022
Thanks, I'll check it out!
reply
110 sats \ 1 reply \ @sb 19 Jul 2022
Bad actors can prove dangerous. Assuming grandma has some BTC stashed away in Fedi, and her family doesn't know much about the network, the "expert" can always make haste with the keys
Very exciting, but it appears to me that portraying itself as an equal substitute to self-custody is a grave error
reply
0 sats \ 0 replies \ @Majjin OP 20 Jul 2022
I like how they lean into leaving custody with people you know and trust because not everyone can be an Uncle Jim. I didn't think of scammers trying to make themselves into that Uncle Jim and running away with the sats.
If people are going to do this I think that its very important that we tell them to make sure that the person running their local Fedimint is someone they know AND trust. Maybe another meme/mantra similar to "Not your keys".
reply