Fedi: Bridging the Gap Between Bitcoin and Communities
Fedi is not just another cryptocurrency app. It’s a bold attempt to revolutionize how communities interact with and leverage "freedom technologies" like Bitcoin, Lightning, and Nostr. Founded in June 2022 by a team of experienced entrepreneurs, Fedi is on a mission to empower communities worldwide, offering a comprehensive "community superapp" designed to manage money, communicate digitally, and meet diverse needs.
"We created Fedi because it solved a problem that we could see," explains Obi Nwosu, Fedi’s founder and CEO. "That problem was how to empower disempowered communities around the world and how to get millions of people that were using [bitcoin] exchanges and give them a path to go from third parties to self-custody."
Fedi, with its innovative features and community-centric approach, aims to bridge the gap between the technical complexities of Bitcoin and the real-world needs of individuals, especially those in underserved communities.
A Multifaceted Superapp: Beyond Just Bitcoin
Fedi is more than just a Bitcoin wallet; it’s a comprehensive platform that integrates a slew of functionalities into a single, user-friendly interface. Key features include:
- Private Messaging: Secure and private communication channels built with Nostr technology.
- Federated Custody: A multisig setup, employing a "federated custody model" where trusted individuals within a community ("Guardians") share the responsibility of managing Bitcoin funds.
- Ecash Minting: The ability to mint ecash, digital tokens pegged to Bitcoin or other assets, ensuring privacy and control over transactions.
- Fedimint Protocol: This foundational protocol allows for secure and efficient management of Bitcoin, Lightning Network integration, and the minting of ecash.
- Support for Lightning Network: Enables fast, low-cost transactions, further enhancing the usability of Bitcoin for everyday transactions.
- Modules: Customizable modules that can be integrated, expanding the app’s functionality to meet specific community needs. Examples include:
- Bitcoin Module: Offers federated access to Bitcoin holdings.
- Lightning Module: Provides access to the Lightning Network for quick and inexpensive payments.
- Mint Module: Enables the creation of ecash.
- Stability Pool Module: Allows communities to peg their Bitcoin to a stable asset like fiat currency to mitigate volatility.
"You don’t have to install multiple apps to get things done," Nwosu emphasizes. "[With Fedi,] you have one app and you can, in one place, do all the different things you need to do."
The Fedi Order: Decentralized Support for Communities
Fedi understands that the integration of Bitcoin and decentralized technologies presents challenges for individuals not familiar with these technologies. To address this, Fedi provides local, community-based support through the Fedi Order, a network of experts known as "Fedi Knights".
"We call it a ‘decentralized Genius Bar’," Nwosu explains. "If you’ve got an iPhone and have a problem with it, you can go to an Apple store and walk up to the Genius Bar and someone who is knowledgeable can help you solve that given problem. We wanted to replicate that feel."
The Fedi Order plays a crucial role in bridging the knowledge gap and empowering communities to confidently utilize the app’s functionalities, especially regarding Bitcoin management and the creation of ecash.
Guardians: The Heart of Fedi’s Community-Driven Model
At the core of Fedi’s approach is the concept of Guardians. These individuals are selected by community members and entrusted with the responsibility of managing the community’s Bitcoin holdings and ecash minting.
"Each guardian is individually trustworthy, otherwise they wouldn’t be in those roles," Nwosu asserts. "The fact that you require two of the three or three of five [to sign off on transactions] increases your trustworthiness significantly."
This federated custody model ensures security and resilience by eliminating single points of failure. Guardians also play a critical role in making decisions about how the community employs various Fedi modules, tailoring the platform to their specific needs.
The Value of Transparency: Open-Sourcing and Building Trust
In a world where data privacy is paramount, Fedi takes a radical approach by embracing transparency and open-sourcing its code. This move, while uncommon in the tech world, is driven by Fedi’s commitment to building trust and empowering communities.
"Philosophically, our number one objective is to build a tool that takes the best of the freedom technologies out there and merges them into one," says Nwosu. "We believe that for many people, privacy and being reliable is really key… The only way to ensure that is at the highest levels is for Fedi itself also to eventually become open-source."
This decision reflects the ongoing shift in the Bitcoin and freedom tech communities, where open-source development is increasingly becoming the norm. "Five years ago, the idea of open-sourcing [code] would have seemed really strange… Our prediction is that in five years time, it will be crazy to be closed-source," Nwosu observes.
A Global Vision: Empowering Communities Everywhere
While Fedi is initially focusing on The Global South, with regions like Africa, Latin America, and Southeast Asia as its primary target markets, its vision extends to everyone, everywhere.
"When you’re looking at the pyramid of users and needs, if you focus on the top percentage of users, it’s going to be very difficult for you to drive down to a set of users who maybe have less resources," Nwosu explains. "But if the car you’re making is a VW Golf, then it’s very easy for someone who can afford more than a VW Golf to continue to use a VW Golf."
By focusing on the needs of those often overlooked, Fedi builds a platform suitable for a wider audience, ultimately creating a product that can be used globally.
Fedi: The Future of Community and Freedom Tech
Fedi is not merely an app; it’s a movement. It’s a movement that empowers communities to take control of their finances, their communication, and their future. By combining the power of Bitcoin, the efficiency of Lightning, and the security of federated custody, Fedi provides a powerful tool for individual and collective empowerment.
It’s a vision that goes beyond simply providing technology; it’s about fostering community, fostering trust, and fostering a more equitable and empowered future for all.
