Fedi has announced raising $4.2 million in a seed round to accelerate the development of its Fedimint protocol and its app in an effort to improve and scale bitcoin custody. Bringing The Concept of Second-Party Custody Fedi app will be officially launched in Q1 2023. It will provide a user interface for Fedimint, an open-source protocol that leverages federated Chaumian Ecash mints to decentralize bitcoin custody and enhance the scaling capabilities of the currency. The open-source protocol is based on the concept of second-party custody, which improves upon third-party custody solutions including self-custody or first-party custody setups. Second-party custody relies on parties that are already trustable in real life. For example, close friends or family members can secure their funds instead of completely outsourcing this to an unknown institutional party. Commenting on the development, Fedi co-founder and CEO, Obi Nwosu, in a statement: “Fedi and Fedimint will help put monetary power back into the hands of everyone, everywhere. This creates brighter futures for billions and especially for those struggling under oppressive regimes, which ultimately makes the world a better place.” Fedimint brings that trust assumption into a second-party trust model that is less technically complex than self-custody and more scalable and private. In a nutshell, Fedimint leverages a decentralized trust system to enable Bitcoin users to form c...
