True and not true. If the federation for the fedimint is just a bunch of randos that you don't know from Adam, then yeah, you are absolutely correct. However, the idea of fedimint is to have people you personally know and who are respected within your community as the signers for the mint. That means they very well could have social capital to lose than the signers for Liquid.
And while both Liquid and fedimints are better than a single custodian, I still think it would be disingenuous to refer to either of them as "self-custody." The point of Bitcoin self-custody is that you hold the keys TO THE BITCOIN. In Liquid, you don't. You hold the keys to a token that represents the underlying Bitcoin, to which the federation members hold the actual keys. That's exactly how it works on fedimint, too. You hold the keys to the tokens that are minted, but the federation members hold the keys to the actual Bitcoin.
Contrast that with self-custody Lightning. You own the lightning channel. You and your channel partner hold the keys to an actual Bitcoin UTXO. Not any abstraction of Bitcoin where someone else holds the keys to the Bitcoin, but the keys to actual Bitcoin.
Dikaios1517
npub1ku…v3lhe
2025-04-03 17:22:32
in reply to nevent1q…5qh5
Author Public Key
npub1kun5628raxpm7usdkj62z2337hr77f3ryrg9cf0vjpyf4jvk9r9smv3lheSeen on
wss://relay.primal.netPublished at
2025-04-03 17:22:32Event JSON
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"content": "True and not true. If the federation for the fedimint is just a bunch of randos that you don't know from Adam, then yeah, you are absolutely correct. However, the idea of fedimint is to have people you personally know and who are respected within your community as the signers for the mint. That means they very well could have social capital to lose than the signers for Liquid.\n\nAnd while both Liquid and fedimints are better than a single custodian, I still think it would be disingenuous to refer to either of them as \"self-custody.\" The point of Bitcoin self-custody is that you hold the keys TO THE BITCOIN. In Liquid, you don't. You hold the keys to a token that represents the underlying Bitcoin, to which the federation members hold the actual keys. That's exactly how it works on fedimint, too. You hold the keys to the tokens that are minted, but the federation members hold the keys to the actual Bitcoin.\n\nContrast that with self-custody Lightning. You own the lightning channel. You and your channel partner hold the keys to an actual Bitcoin UTXO. Not any abstraction of Bitcoin where someone else holds the keys to the Bitcoin, but the keys to actual Bitcoin.",
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