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P: What else is there in the Bitcoin space that we haven’t talked about so far in this conversation? Ben, you’ve been quiet for a while, do you want to move on?
Ben Carman: Yeah, I think Fedimints is probably one of the biggest things happening in this space right now. Super cool. It’s like using what is called a Chaumian Ecash server, whose peculiarity is total privacy, but in total control. Interestingly, it was invented 30 years before Bitcoin and was initially used by some banks, only to be closed or failed.
Then I was like, ‘Oh, that’s a cool idea, but it failed in the fiat world. Now people are trying again. , all denominated in Bitcoin, yet with this complete privacy on top of it.
I think it would be a great solution. I know another way to protect your privacy with Bitcoin. It’s going to be management, but I think the idea is Fedimint, so it’s the Federation that runs it. A single person cannot do a rag pull. It has to be a gathering of people. If you make it big enough, it should be safe enough to keep there for privacy.
P: I like it.
Tony Ronning: I agree. Fedi Mintman. From a privacy standpoint, I think this is really exciting. Yeah, there’s also the custodial aspect, but even for myself, I don’t have the ability to custody, so I don’t think I’m going to use it. Just like you want to use not everyday comings and goings. I want it to be as private as possible. Both Lightning and, as I explained earlier, PLN still have Lightning channels. still online. There are still liquidity issues to receive. You need inbound liquidity to receive in Lightning, so you need to open a channel and everything else. In many ways, it’s impractical from an everyday point of view for everyone. So if you want a Lightning wallet that works really well, Fedimint actually integrates very well with Lightning. You can travel between federations simply by passing through Lightning.
You can do all sorts of amazing things with just Lightning integration. Basically, you have a Lightning Gateway attached to your Federation, so your Lightning Gateway can respect tokens from the attached Federation and receive them via that mechanism, basically atomically in Lightning .
Lightning Gateway receives funds on your behalf and you receive those tokens. These Fedimint Tokens and Lightning Gateway cannot run out of your funds. Sure, Federation, if it was the villain in the majority, you could lose some money there.
You trust the Commonwealth, but for me it’s okay to spend a month’s worth of money and trust the Commonwealth. What I’m talking about is like spending thousands of dollars at a time to get the privacy guarantee that Fedimint offers.
So for me it’s an acceptable risk. You don’t just trust them with your privacy either. Just like you can go to Coinbase, Matt Odell says that talking about how some people pay him via Cash App is Like, Matt doesn’t see the Bitcoin wallet that way. He confirmed it was from Cash App.
He doesn’t work for Cash App. He doesn’t have his Cash App data. So he can’t see the user hiding. They trust Cash App for their privacy so no one can analyze their data or transactions, but with Fedimint, you can do more than just let Fedimint take care of your privacy. They literally have no idea what your deal is. what is your bitcoin They gave you a blind token at some point, so when you use it later, they won’t know if it’s still yours. Fedimint can be done in a variety of different ways – but even in scenarios where it is a KYC-based federation, I’m sure it exists, some non-KYC and some without KYC. sho.and so on. Even if you are a federal single identity and have received these federal blind tokens, the worst they can do is see how many tokens you have received so far, but they can’t know how much you currently have. They don’t know when and where you spent your money.
There are many great privacy benefits to using Fedimints, it’s not just about trusting your privacy, it’s about trusting parental authority, but there are some very good privacy guarantees. .
Bitcoin Fedimints Trade Privacy for Trust and Control – Bitcoin Magazine
Source link Bitcoin Fedimints Trade Privacy for Trust and Control – Bitcoin Magazine