Tech startup Fedi has raised $17 million in an effort to make Bitcoin easier for newbies to use and grasp through the use of private and scalable “federations.”
“Fedi, as a company, aims to empower communities everywhere by accelerating the adoption of technologies like Bitcoin and Lightning—and rolling out Fedimint federations to communities and companies worldwide is how we intend to do it,” Fedi CEO and co-founder Obi Nwosu told Decrypt.
Fedimint federations are a cryptographic Bitcoin tool that allows users to set up communities—which could be made up of friends, neighbors, businesses, or any other loosely coupled group of people—for custodying Bitcoin and Lightning together.
Stepping back for a minute, Bitcoin stands out from traditional digital money because it allows users to have control of their assets, rather than trust them in the hands of a third party. It’s kind of like digital cash. But, most users end up storing their money on exchanges or custodial wallets anyway because self-custody takes time to learn.
Fedi wants to use federations to provide a way of using…