Fedi Review 2023: A Bitcoin Wallet With Community Custody

In this Fedi review, we'll explore its features and discuss community custody, a secure alternative to self-custody and exchange custody. We'll also test the Fedi Alpha app and the innovative Pop-Up Federation for the BTC Prague Event.

What is Fedi?

Fedi is more than just a Bitcoin wallet; it introduces an innovative approach to crypto custody called community custody or federation. When it comes to storing cryptocurrencies like Bitcoin, people often have two options: either hold their own private keys, which requires them to take full responsibility for the security of their funds, or entrust their keys to a centralized exchange, where they rely on the platform to safeguard their assets.

However, Fedi proposes a different method—a third way. Instead of solely relying on oneself or a centralized entity, Fedi allows individuals to share the custody burden with trusted friends and family members. This means that a group of people can collectively hold the private keys to a Bitcoin wallet, forming a federation or community of custodians.

By distributing the responsibility among trusted individuals, Fedi offers a more secure and decentralized approach to custody. Each member of the federation plays a role in safeguarding the funds, reducing the risk of a single point of failure. This approach can provide a sense of security and trust, as it relies on the collective responsibility and vigilance of the custodians.

Fedi's concept of federation and community custody offers a fresh alternative to the traditional options of self-custody or centralized exchange custody. It allows individuals to safeguard their Bitcoin with trusted friends and family, promoting a more secure and decentralized approach to Bitcoin custody.

DESCRIPTION DETAILS
💻 Name Fedi
🌐 Website Fedi.xyz
🗓 Release year 2023 (Alpha Release)
💰 Coins Supported Bitcoin
💸 Price Free
🔒 Security Features Personal Backup (12 words) or Social Recovery
💻 Compatibility iOS, Android, APK, PWA
🔄 Network Lightning Network
📜 Software License Open Source (Fedimint protocol)
📜 Warranty No Warranty

How Fedi Works

Fedi Overview
Fedi Overview

Imagine an app that not only provides a Bitcoin wallet but also hosts various other applications, tailored to the specific structure of its Federation. This is precisely what Fedi offers.

With Fedi, users and developers alike have the opportunity to create apps that address real-world issues and deploy them within federations or online.

What sets Fedi apart is its foundation on Fedimint modules, the underlying technology driving its functionality. Fedimint goes beyond being a mere federated e-cash system; it serves as a blueprint for constructing diverse federated applications, leveraging key cryptographic components.

With Fedimint, centralized apps can be transformed into decentralized counterparts that guarantee privacy, resilience, and scalability. In essence, Fedi unlocks the potential for global connectivity, collaboration, and impactful change.

The possibilities are boundless when it comes to Fedi. Whether you're an individual or an organization, you can create your very own Federation, tailored to your unique needs and objectives.

Fedi Features

Fedi Features
Fedi Features

When it comes to Bitcoin lightning wallets, Fedi stands out from the crowd with its exceptional and distinctive features. Let's explore some of the most remarkable aspects that set Fedi apart in the realm of digital wallets.

Offline Transactions

Offline transactions is one of the most interesting features of Fedi. The funds are securely stored on your phone, allowing you to perform transactions even without an internet connection. No need to be connected to the Wi-Fi or worrying about poor network coverage. With this innovative feature, you can confidently make payments anytime, anywhere.

What sets our offline transactions apart is the seamless integration within your federation. By eliminating intermediaries, you can make direct payments without any third-party involvement. This not only streamlines the transaction process but also enhances the security and privacy of your financial interactions.

How does it work? When you initiate a payment, eCash is transferred from your wallet to the recipient's wallet.

The settlement takes place once the recipient comes back online, ensuring that the transaction is successfully completed. This system ensures that your funds are securely transferred and your financial activities are efficiently managed.

Chat

The Fedi chat feature allows users to engage in conversations with friends, family, and even strangers in a convenient and user-friendly manner. Users can communicate and exchange messages seamlessly within the app.

Additionally, the chat feature offers in-chat payment functionality, allowing users to make transactions without having to leave the conversation.

This feature adds a new level of convenience and efficiency to financial interactions within the Fedi platform.

Moreover, the chat feature employs end-to-end encryption, ensuring maximum privacy and security for all conversations.

Personal Backup

Fedi offers a personal backup feature that enables users to regain control over their funds and data whenever needed. With just a few simple clicks, users can retrieve their seed phrase, which serves as a crucial key to recovering funds and important information.

The user-friendly interface guides users through the process of securely writing down the seed phrase in the correct order. This ensures that the seed phrase can be safely stored and easily accessed for future use.

The personal backup feature provides peace of mind, knowing that users have a reliable method to protect and restore their financial assets.

Social Backup

Fedi's social backup feature offers an additional layer of support for users' money and data recovery. Users can record videos and securely store them or share them with trusted individuals.

In case of emergencies or the need to recover information, users can securely share these videos with designated guardians. Federation Guardians, within the Fedi community, verify the user's identity and facilitate access to the necessary data and funds.

This feature provides users with reassurance, knowing that their community is there to assist and protect their financial assets.

Sites

Fedi provides users with access to various modules and apps within the platform. This integration allows for a seamless and centralized experience, where users can access their community's preferred applications without having to switch between multiple platforms.

The Fedi platform simplifies the process by consolidating the digital world into a single location, enhancing user convenience and efficiency. Additionally, the platform incorporates Lightning Network authentication, ensuring secure login and personalized access to the preferred sites.

Users can send and receive money directly from their federation, eliminating the complexities associated with external transactions.

Wallet

The Fedi wallet feature serves as a gateway between users and the broader financial landscape. With this feature, users can effortlessly send and receive money to external wallets, expanding their financial reach beyond the federation.

The wallet feature offers customization options, allowing users to personalize their display currency according to their preferences. Users can choose from various fiat currencies or digital assets, tailoring their experience to suit their individual needs.

The wallet feature supports both on-chain and Lightning Network transactions, providing users with flexibility and versatility in managing their funds.

Fedi Federations

In Fedi, a Federation refers to a fundamental concept that empowers communities and individuals to exercise control over their digital lives while safeguarding their privacy and autonomy. It provides an independent framework for managing money, data, and digital interactions.

By utilizing Federations, Fedi enables users to create and join self-governing entities where they have greater control over their personal information and financial transactions. These Federations serve as decentralized ecosystems that prioritize user empowerment, allowing participants to retain ownership and control of their data.

Federations in Fedi aim to grow a sense of community and collaboration, providing a platform for individuals with shared interests to connect and interact. They offer an alternative to centralized systems by emphasizing privacy, security, and user control.

Participants within a Federation can engage in various activities, such as conducting financial transactions, sharing information, and collaborating on projects. These interactions often take place within specific timeframes, as some Federations may be temporary or designed for specific purposes, while others can be more permanent in nature.

How Federations secure funds and infos

Fedi's core idea revolves around the formation of communities, referred to as Federations, pooling their bitcoin holdings. These communities can mint tokens known as "fm-BTC eCash notes" on the Bitcoin blockchain, utilizing them for internal payments. This approach offers faster and more private transactions within the community, shielded from external observers who can easily trace bitcoin transactions on the public blockchain.

The Fedimint protocol, a key component of Fedi, enables community members to conduct Lightning Network payments within the Federation. This integration allows for faster and more efficient transactions while maintaining privacy.

Fedi also provides additional functionalities beyond financial transactions. Communities can collectively store various items in a joint backup wallet, including decentralized identity credentials and important community content. This shared storage alleviates the need for relying on centralized platforms like Google Docs or Dropbox, enhancing community control and privacy.

Is Fedi safe?

One of the questions many users might ask  would be: Is Fedi safe? Can I trust Fedi to use it as my main lightning wallet?

First of all, it's important to say that Fedi is organized as a company and led by CEO Obi Nwosu, who co-founded the company with Eric Sirion and Justin Moon. The parent company of Fedi is Fedi, Inc., which is located 2028 East Ben White Boulevard, Suite 240, PMB 2112, Austin, Texas 78741.

Fedi recently announced a funding round, The financing round was led by Ego Death Capital, with participation from TBD, part of Block, Kingsway, Trammell Venture Partners, and Timechain. The Series A brings the total amount raised by Fedi to $21.21 million.

Earlier seed round investors included Ten 31, Hivemind, Steve Lee, and Recursive Capital.

We still couldn't find find a trustpilot page to look for Fedi reviews. The app, is still in alpha mode, while developers are testing it so there still isn't an official application.

It's crucial to note that Fedi operates independently, separate from its own infrastructure. The security of Fedi revolves primarily around you, as you are responsible for securely holding and managing your private keys or entrusting them to a Guardian.

BTC Prague Federation

During the BTC Prague conference, I had the privilege to try the first ever Pop-Up Federation on Fedi. Participants at the event are able to test it and share their feedback. Let's have a look at the main features.

Fedi Home
Fedi Home

The Fedi platform showcases a sleek and minimalist design. At the top, prominently displayed, is the name of the Federation. Positioned in the center, the lightning wallet takes center stage as the primary focal point, highlighting its significance within the platform.

Noteworthy is the ☁ cloud symbol, which serves as a toggle to enable or disable offline payments—an impressive and highly useful feature. This functionality allows users to seamlessly conduct transactions even without an active internet connection.

Below the lightning wallet, users will find a collection of apps that comprise the Fedi "Operating System." These apps provide diverse functionalities and services.

Fedi Settings
Fedi Settings

Within Fedi's comprehensive settings, you'll discover a small list of options and functionalities.

One notable feature is the ability to invite new members to your federation. Likewise, should the need arise, you have the freedom also to leave a federation.

In terms of wallet management, Fedi offers robust backup options to safeguard your funds and ensure peace of mind.

The recovery process presents two distinct approaches: social recovery and personal backup.

  • Social recovery involves recording a video to validate your identity, adding an additional layer of security and accountability.
  • On the other hand, personal backup offers the traditional method of utilizing a set of 12 recovery words, allowing you to restore your wallet independently.

How To Download Fedi

Fedi Alpha Download
Fedi Alpha Download

Currently, Fedi final release is not available for download on app stores since it is in the alpha mode.

However, you can still test the evaluation version, which does not involve real funds, through the Fedi website. The evaluation version is accessible on iOS devices via TestFlight, on Android devices, or through the web. To get started, follow these steps:

  1. Visit the official Fedi website.
  2. Navigate to the "Builders" section.
  3. Download the version compatible with your specific device.
  4. Join the Federation. The alpha Federation can be found on the Builders page, or you can directly enter the following federation code:

fed11jpr3lgm8tuhcky2r3g287tgk9du7dd7kr95fptdsmkca7cwcvyu0lyqeh0e6rgp4u0shxsfaxycpwqpfwaehxw309askcurgvyhx6at5d9h8jmn9wsknqvfwv3jhvtnxv4jxjcn5vvhxxmmd9udpnpn49yg9w98dejw9u76hmm9

Please note that since Fedi is still in its alpha phase, it is important to approach the evaluation version with the understanding that it is a work in progress and may not have all the final features and functionalities.

Fedi Pros & Cons

Fedi final version is expected to be released in late 2023. As it is still a work in progress, it is challenging to provide a comprehensive evaluation of its functionality until the final release version is available. However, based on our privileged experience with the current iteration, we can attest to its overall smooth performance.

While offline payments are not fully operational yet and are currently available only through a simulation, the other features we tested worked seamlessly. The concept of integrating various applications within the operating system is intriguing. However, it remains to be seen whether developers will transition to creating native apps rather than relying solely on linked services, such as Stacker News, Geyser Fund, Bitrefill, and BTC Map, as observed during the BTC Prague event.

One of the revolutionary aspects of Fedi is the concept of community custody. Users can secure their accounts with a 12-word seed phrase, enabling personal recovery if needed. Additionally, Fedi offers the option of social recovery, where a trusted guardian can assist in the account recovery process.

Pros Cons
✅ Smooth performance and functionality ❌ Still in alpha mode, final release pending
✅ Innovative concept of community custody ❌ Offline payments only available through simulation
✅ Integration of various apps in the OS ❌ Uncertain if developers will create native apps
✅ Secure account recovery options ❌ Limited availability of official applications
✅ Community-based tokenization for faster payments ❌ Lack of comprehensive user reviews (Trustpilot)
✅ Lightning Network integration for faster transactions
✅ Joint backup wallet for shared storage

Bottom line

In conclusion, Fedi is an innovative and promising platform that aims to empower communities through decentralized solutions. While it is still in its alpha mode and awaiting its official release, the initial impressions of Fedi showcase smooth functionality, secure account recovery options, and the integration of various apps within its operating system.

The concept of community custody and the ability to mint tokens for faster, private payments demonstrate the potential for transformative change. However, it is important to note that Fedi's true capabilities and long-term scalability will be better understood once it reaches its final release.

Fedi presents an exciting opportunity for individuals seeking greater control over their finances and digital lives, and it will be interesting to see how it evolves in the future.

Fedi Evalutation

Security: Fedi places a strong emphasis on security by allowing users to hold their private keys or entrust them to a Guardian. The account recovery options and encryption methods provide a secure environment. However, as Fedi is still in its alpha mode, further testing and auditing may be required to assess its security thoroughly (4/5).

User-friendliness: Fedi strives to offer a user-friendly experience with its minimalist design and intuitive interface. While most users should find it easy to navigate and use, there may still be room for improvement in terms of providing more comprehensive user guides or tutorials (4/5).

Compatibility: Fedi ensures compatibility across various platforms, offering versions for iOS, Android, and web access. This wide range of compatibility allows users to access and utilize Fedi on their preferred devices without any limitations (5/5).

Reputation: Fedi has generated positive recognition within the Bitcoin community for its innovative approach and commitment to privacy. However, as Fedi is still in its early stages, its reputation may continue to evolve as more users engage with the platform and provide feedback (4/5).

Cost: Fedi is currently offered free of charge, providing users with a cost-effective solution for their Bitcoin wallet and decentralized application needs. This makes it an attractive option for users who want to explore the platform without any financial barriers (5/5).

Frequently asked questions (FAQ)

What is Fedi?

Fedi is a decentralized platform that combines a Bitcoin wallet with various apps, providing solutions for real-world problems. It operates through federations, allowing communities to have control over their money, data, and digital lives while preserving privacy and autonomy.

How does Fedi ensure security?

Fedi's security relies on users holding their private keys or entrusting them to a Guardian. Guardians are responsible for running a fedimint server for a Federation, safeguarding the community's bitcoin and data securely. Fedi also offers account recovery options, including personal backups with 12 recovery words or social recovery methods like recording a video to verify identity.

What are the benefits of using Fedi?

Using Fedi offers several advantages. It enables communities to pool their bitcoin together, mint tokens (fm-BTC eCash notes), and conduct faster, more private payments within the community. Fedi integrates the Lightning Network for efficient transactions and offers joint backup wallets for secure storage of important community assets. Additionally, Fedi's concept of community custody and its potential for decentralized identity tools provide a revolutionary approach to data management and collaboration within communities.