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Obi Nwosu

lines on the record: 89
first: 2022-07-20
most recent: 2022-07-20
sittings or episodes: 1
sources: podcast

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“Thank you very much. It's been a pleasure talking to you. I really enjoyed it. I think you have, well, I personally think you have this incredible energy. It's really enjoyable talking to you. You would be the ideal person as a guardian. I appreciate that. But I would be very comfortable being part of the guardian group that I would be using for likewise.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Thank you very much for that. So, first of all, if you want to find out about the base protocol that this sort of third pillar of the Bitcoin open source ecosystem, go to Fedimint.org, and that's F-E-D-I-M-I-N-T.org. Fedimint.org. If you want to find out about the new mobile app that we're producing, we've got a site and that's fedi.xyz. So fedi.xyz. Simple as that. And then if you want to find out about my, we have Fedimint on Twitter. If you want to follow Fedimint on Twitter, there's a Telegram group called Fediment as well, which is very active and it's got and has really interesting conversations. And then finally, if you want to hear my musings on Twitter, my occasional musings, you can find me at Obi on Twitter. So just OBI. A very early Twitter user, so that's my Twitter kind of thing.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“They could, for example, buy a noodle or buy an umbrella or set up a Raspberry Blitz and create a federation amongst themselves for all of their family back home and the family back home just needs to download a piece of software, scan a QR code, and they're signed up knowing that it's people.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“You just need to add a hard drive, which is a terabyte in size. You get those for $40, $50 now. And that's enough to run a full node. You can then download the nodal software, the Umbrell software, and use that instead. You also don't need the people running the federation don't need to be in the same place as the people. They need to be the same place from a relationship point of view. They need to have close contact, but they don't need to be physically in the same place. So, for example, members of the diaspora who are sending regularly large parts of their paychecks back to their friends and family in the global south are ideal candidates for running guardians because they are in the west, they're already giving money to these people. So if they're giving money to them, they're not likely going to want to steal the money that they've just given to the people they're protecting.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Great question. So remember, there's two things there's the people who are running the Federation, the Guardians, or the Fedite almost, and there's the people who are using this app that we're creating, which we're calling FedEy. And that's a mobile app. You download it from Google Store or Apple Store and you have the app. So if you take a Feddie Mint Federation and the users, let's say it's a village and it's 500 users and there's”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And they can't wait years to be onboarded through a regulatory process, through a regulated exchanges, each one going through KYC and ultimately many of them not even being approved. Fedimint solves that problem, but it needs a very simple user interface for that. So having realized that and having formed really strong relationships with some of these incredible brave individuals, it's become a passion of ours to not only offer this to the world, but with a specific focus on working with some of these people to roll this out at scale in some of the places that need it the most. And the good thing is, if it works there, it can work anywhere. So it's for everybody, but that's actually a key part of why we decided to focus now and build this interface and make it incredibly simple. And we will be looking to roll out.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And all of these people are coming to the realization that a big part of the challenge is money. These regimes are powered by money. They often use inflation aggressive levels of inflation as the tool to extract money from their people, even if the people don't want to give their money. Inflation is a very powerful tax. And if you take examples like Venezuela with 20,000% inflation right now, come down from 50,000% inflation. Even if you're donating or sending money back to your friends and family into a country, what you're effectively doing is donating to the regime, which you may not support, but without realizing you're supporting. So they need a solution and they need a solution that can be deployed anywhere and it doesn't cost a lot of money. It's not going to be stopped in customs, it's hardware wallets.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Make you lose your money or if you have the technical chops and you and the money to properly self-custody, that's great. But if you haven't got those two, really you're still talking about billions of users who don't meet those two criteria, either through reasons of complexity or through reasons of regulation that they're excluded from custody in Bitcoin. And these include some of the most oppressed people in the world. A couple of months ago, I was invited to by Alex Glastin to Joslow Freedom Forum. And I got to hear some of the most heart-wrenching but also encouraging stories of bravery against oppression around the world and generally in the global south, but also in Eastern Europe with Ukraine and Russia happening there.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“But yeah, so it's called FedE and it's a very simple app. But ultimately, this is global scale Bitcoin custody. It's for everybody and anyone who wants to not custody on an exchange but wants to incredibly simple experience, very secure, lightning first, and also with privacy by default, which is basically everybody, I think, would want something like that. However, what has made me really passionate in the last few months is to see how it can help as part of everybody, the billions of users who are excluded from the current two options. So if you are able to meet the cuts to be on a regulated exchange and you're comfortable with the risks and trade-offs, which we've seen quite recently with some of the reasons things that even regulated exchanges still can”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Perfect name for that more like Maze Windu, who is Samuel Jackson's character, to be honest. So I'm probably more of a mace window than overlooking. Justin Moon, who's one of my co-founders with his mullet, is very much like the younger Obi-Wan, actually. We were discussing this the other day, so he's probably Obi-Wan Kenobi. And so I don't know who else Siri Obi, maybe he would be Yoda, you know, because he came up with the idea. We haven't decided who El Syrian is.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Fediments and the product that we're making is called fede based on fediment, but it's just a nice simple name and it reminds me of or reminds us of Jedi. So these guardians are like Jedi knights almost.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“People who ideally value social capital more than they value financial capital. And anybody can custody it, but if I had a choice of who's going to hold my money, someone who's motivated by money or somebody who's motivated by social capital, I know which one I would choose out of those two to hold my money. And yeah, so that's the idea.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“That's, and then you want them to be people that you think can be reliably custodying your Bitcoin. That's to be the best practice. That's exactly what you get out of the box when you use Fed. You get the best practice by doing nothing but just downloading a mobile app and a federation will have an address. You enter the address or if you go to QR code, you scan the QR code and you're done. No passports, no driving license, no selfies, but also no figuring out what you do with your 24 word seat. It gets immediately cryptographically split into shards using Shamir's secret sharing scheme, which is a cryptographic mechanism to split up a key. And then it gets split, and then it gets shared amongst Berg Guardians, who are by definition your trusted third parties. They're trusted in your community to be the knights of the community,”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“The ideal thing you want to do when all is said and done is for most people, unless you're willing to go to the grave with your keys and contribute your Bitcoin to the world through inflation, which some people will want to do and I respect that. But if you do want to pass it on to anybody, then you're going to want to make sure it's reliably custody. Or if you do want to recover in the event that you lose your backup and so on, and the best practice way is to use multi-signature m of n type custody. And then where do you store each one of those?”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And this is not recommended, but he memorized his 24 words seed because he just couldn't think of somewhere else he could be comfortable storing it. I go, what happens in the case of your death and your family? And he said, well, you know, my loved ones have a copy of the key. And I go, where do they store it? I don't know where they store it. But that's your security level. And this is the thing. You have to remember that is the security level. And the more you think about it, then what you do is you go online, you check out 10x Bitcoin security Bitcoin security guide and so on. And they will tell you.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“all covered. And it solves that problem, which is an important problem to solve, especially as time goes by. Because right now, if you're doing it in a first party custody context, it's very complex. If you think about it, again, if you can do the first party custody approach, you should have at it. You should do it. But if you want to do it properly, it's complex. You need to get a good hardware wallet. You need to be able to get it to be delivered that costs money as well. So you've got that. You then need to work out what you do, which is the hard bit, what you do with your 24-word seed. Because there's no point having this fortnops level security with AI, artificial intelligent robo-controlled sharks in a moat in front of it. Then you go around the back where your 24-word seed is and there's an open door because it's stored with a magnet on your fridge, your 24 words. It sort of defeats the purpose. I met someone the other day who's a hardcore bit.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“The more you hear about it, the more you realize that this is the missing piece of the Bitcoin open source ecosystem. It provides at rest very good privacy, incredible privacy. It actually in a community context, we haven't even gone into the beauty of how you do social recovery so that you don't have to worry about the challenge of what you do with a 24 world seed or how do you recover it and ultimately even how do you deal with it in the event of your death and inheritance planning and so on.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Lower reliability of your transactions, or you connect to one party who represents the volume of 500 people, and it also is run by a federation of members who are running it reliably. And as long as a majority of them up or running, it stays up. So it's reliability and uptime is much higher. And it also represents much more volume and it's only one connection. So you now need to just put a lock up an amount of balance, which is based on the average for all of them as opposed to trying to figure out for every individual user who may never use it for a month and then use it once you have to lock up. You get much more consistent revenue for much lower costs, allowing you to become much more profitable from it. So it's actually, and if it's much more profitable, you incentivize more people setting up like this. So without realizing this, Fedimint's widespread use of fetamints actually makes the lightning network more reliable, more”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“You could load balance over to another LSP, for example, immediately, and provide a much more reliable payment experience for your users because you're not locking up funds. But it's also great for the LSPs because having after a four and a half hour conversation with Rennie Pickard about this, a Fedumin represents an ideal counterparty for an LSP. You have two choices connecting to 500 intermittent lightning nodes with small amounts of balance and locking up balance amongst all of them to cover potential scenarios for all of them. So you have to overcollateralize for these 500s. And they're also up and down irregularly so that you're constantly your network graph of how to route traffic is constantly changing and having to be recalculated, which is very expensive for you and leads to a much”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Send off Bitcoin over the lightning network to the address cent. But from the recipient's point of view, they receive a lightning transaction. And so what would happen is their channel balance would go down, but their e-cash balance of the LSP would go up. The beauty of that approach is that means the LSP needs to have some trust for the guardians so they will probably know the guardians as well or be comfortable with them, be part of the community as well. federation members don't have to have any trust for the lightning service rider so only one way so and they don't have to also lock up any balance the federation doesn't need to lock up any balance on chain or on on network as well and because it's not locking unbalances there's nothing to stop a federation having connections to multiple different lsps so if one balance channels were exhausted for example”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Destroy the tokens that are being spent and then release or to the address that's been instructed to sent to an on-chain transaction, for example. If you're sending a lightning transaction, what will happen is a lightning service provider would also have a connection be connected to the mint. USA user can connect up to your own lighting service provider. You don't have to actually interact with the guardian to do this. But what would happen is you would send your eCash tokens to the lining service provider and they then in a trustless way would effectively emulate the logic of a hash time lock contract where one part is e-cash as opposed to one part being on chain or on network and then they would with their own bitcoin within their own channels”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“transaction this Bitcoin transaction ultimately the e-cash is only within the domain of the federation outside the federation the federation will”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“They would just know some number of coins was used, but you lose some information because you do know the denominations, but that's still incredible levels of privacy.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“the people who were running the federation servers will be very limited in what information they will have about the size. They will be aware of the type of coins used, so they might know that you use a combination of $5 coins, or let's just put it in that point. You use some 0.1 Bitcoin coins, some number, some number of 0.01 coins, and some number of 0.001 coins. But you won't know that's to the extent that they would have awareness, but they wouldn't know how much of each you could have used a million of one or one of one. They won't. If we wanted to and you only had one denomination of coins, then you wouldn't even know that. But that's where there's the theoretical perfect privacy. You would only get perfect if you had one denomination only.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Have a use case where it could be exempt from regulation. And if you look at a modern exchange, 80 to 85% of people working there one way or another are only there because of regulation. So if you exempt from regulation, it just simplifies everything and it makes it global scale.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Eric Syrian looked at the idea of that popularized by Blockstream of federations with liquid, where you're taking this one address and you're federating amongst multiple people and thought, well, instead of having this sort of global scale federation, why don't we apply this technology to Chamia Mint and we betterate the bank so that it's not just one person but a number of people work together to provide the service of this Chamia Mint. And that was where the idea of so removing one of its main weaknesses, which was the fact that it was one centralized actor and it solved that by federating a centralized actor. And federated Xiaomi Mintz were born. And then where I came in, I realized, oh, you could.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Hold money on behalf of someone without knowing who you're holding for allows you to receive deposits for someone and pass it on to them without knowing who it is that you're passing it on for and also the opposite can happen. Someone can send back tokens to you which you then destroy because you mint the tokens and destroy them and you can then send off Bitcoin on chain or over the lightning network without knowing who made that request. So it provides it's very simple requests cryptocurrency and perfect privacy. What was the additional innovation and someone actually theorized this in 2002? Actually someone recently showed a paper that Summer thought Chao Main's, lots of people have looked at them again and again someone support that Chao Miamint would be great but maybe as their way for us to decentralize the bank but they didn't think about how to do it but it was proposed and then a year and a half two years ago”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Don't know how many people are in the fairground, who's got what, and also most of the transactions don't even need to interact with you for long periods of time, only if they want to blind them and to prevent double spending. But again, you won't know who it is. So with this deposit coming in for one of your users, you would have some sort of shared secret, which the person who's receiving the money would have known. And they will therefore add that shared secret to this address. And then when the money comes in, once it arrives, they can then provide you some information to prove that they're the ones who are the right specificians for that money that came in and therefore you release it to them and you issue tokens to them. But that way you can issue tokens to someone when based off of a deposit coming in without knowing who you're issuing tokens for. So the Charlie Mint system allows you to”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Directly to another as well. But where the cryptography comes in is it provides this ability for these tokens to be signed but in a blinded manner so basically a user can receive the tokens, blind them locally, send them to the mint will then stamp them to say this is valid and then return it back and then the user can unblind them and now they can spend them but the mint never knew who requested it for it to be blinded. So to stretch the metaphor of the fairground you can imagine it's the same fairground but it's still at this big glass window. You replace it you brick it up and all that the people in the front can see is this hole where money comes in and they give back tokens or tokens come in give back money if you add that addition that's the blinding then you effectively do”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Literally a different token for every single individual coin. So, in the same way, you have, if you want to give someone £5.50, you have to give them £5 notes. I'm saying pounds as my British background, but $5.50, for example, or 52 cents, you give them $5 note, and then you, or let's say $6, you give them a $5 note, a $1 note, and then you give them a 50 cents coin and two cents coin. It will be the same with ECAC. You'd have to do the same. You have to create, you'll add them to tokens together to add to the number. So it acts exactly like conceptually how you think cash works. And when people talk about Bitcoin, how they naively think it works, that's exactly, but they find out later it doesn't work that way. eCash works the way you naively and intuitively think digital cash should work within the confines of this of the domain of the federation so one federation member can send their ecstasies”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And then on the back of that, when he receives money in, you would receive in its place these digital tokens, which would effectively be eCash, what they call eCash. So you can think of it conceptually like you're going to a fairground with lots of different rides, lots of different things you can do, and you go there with your family and your children, et cetera. You go to the front and there's no money for the rights. You have to buy tokens for everything. So you get to the entrance and there will be a there will be a cashier or a teller. You give them some cash and then they would give you tokens. Once you receive those tokens, let's say the mother buys these tokens. She's going to give some to her husband, some to her children, and they can go off. They can go around see a friend's passed into the friends within the confines of this fairground. These are bare instruments, tokens. And it's the same with eCash.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And in theory, it provides for cryptographically perfect privacy, not near perfect, not Monero near perfect or Zcash, trusted startup perfect, cryptographically perfect privacy. And it's been around for a long time as well, using very mature cryptography. The only problem was that it required a centralized bank to receive your cash, whatever that cash would be.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“But it's not actually attached to a person. Instead, what's implemented internally as well as this multi-signature wallet is a Chao Mian Mint. So a Chao Mian Mint is a privacy or Chao Mian Ecash is a privacy protocol that was invented by David Chowm in actually 1983. And it was used in his company DigiCash, which was one of the first sort of e-money systems. Now this protocol is actually very elegant, relatively simple. It's obviously using very mature maths because it started in, it was invented in 1980.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Point to send money to any one of the OU, you would send it to the same multi-signature address. But when a deposit comes in, there will be additional information that we passed along that will allow you to know which address that's related to. So for example, if it was on chain, you'd create an address and the federation, the Fediman Federation, will know that this address, just like when you use an exchange, an address is created and it's associated with a user that address will temporarily be associated with a user as well. And so when the deposit comes in, the Federation knows that that's allocated to a given user. Now, here's the thing. Unlike an exchange where you have this concept of accounts and use account one, two, three, four, there are no accounts, at least no permanent accounts in a Fedimet Federation. A temporary account is set up just to receive the money.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“The transact, but let's just say if you wanted to go six and you choose to have a four or six multi-six. So each person will take their own private key that then manage themselves, but then they would put in the IP addresses of the other federation members. It will create a multi-signature address which requires four of those six keys to sign. And if you lose any two of those six keys, you can still keep ticking along and still keep sign. So it provides a bus factor of three. So it needs at least three people before it stops being assigned. And you have a and all you need at least the majority of four people to sign as well. So no one person in that case, no two people can cause the system to stop. And also it will keep going and also vice versa. So that falls this multi-signature address.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Let's say five people, and it's three of five, or if it was six, you'd probably want to go again. You could do whatever you want, but I'd probably suggest you to go for four or six. So you need an absolute majority.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“So it's a multi signature address. So each person has their own private key, but then they use their private keys to form a multi-signature address, which requires a subset of the keys to sign a transaction. So three of six.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And then with a little bit of configuration, just like you have to configure your Lightning node or Bitcoin node, a little bit of configuration, mainly just putting the IP addresses of the other federation members, the system will form a federation. They will connect to each other. They will form a multisig wallet. And that's it. And then just like Bitcoin, and to a lesser extent, Lightning, but just very much like Bitcoin, once you do that, you can just make the idea is you just keep it running other than the odd bit of maintenance running out of hard drive space or something like that. You just have to keep it fed and watered with electricity and internet. And that's it. It will just rough.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“If something were to happen to you, you lose your own beauty. But now it's something happens to you, you lose yours and their Bitcoin, which is extra stress. You could then say, and also your Bitcoin, you want to work out how am I going to hold my 24-word backup seed securely? And again, if you go to sites like 10x Bitcoin security, Glacier Protocol, all these things, the recommendation would be multi-signature custody. And then where do you saw those different multi-signature keys with trusted friends and family? So what you'll do is you take your Bitcoin nodes, you install the Fedimint software as well. They need a full Bitcoin node running, but the Fedimint services only adds a very little additional overhead to that.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“you know, approaching that other hardware wallet, but it was still a software solution which could be delivered anywhere in the world for free. This was decentralized censorship-resistant custody. And so that's why I became really excited and I wanted to do everything to support it after that point. But let's go back to your question about a given example. Let's say you and some other friends of yours are Bitcoiners through and through and you run your own full nodes and you're always going to get friends who want and family who want you to become like their uncle Jim to support them. I think that's the phrase to support them and help them provide them advice, maybe help buy Bitcoin on behalf, maybe hold some for them, etc. But you're then taking a lot of risk on in terms of”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“So that's all a matter of experimentation. And it's also very flexible. It's a technology, it's a protocol, and we're going to see a lot of experimentation if I talk to 30 people. I get 30 different topologies of how it could be set up, which is great because that tells you that this is a really flexible tool. But let's just take one example. And just before I do that, go back to the last point. When I realized that that was the case, that it was possible to be exempt from regulation, but the experience then I realized that this was far more than just a privacy technology. This was a decentralized custody offering. You could have the user experience of an exchange, but better. You can have privacy levels, which were better than both an exchange and a hardware wallet. You could have access to the Lightning Network natively. And you could also have a level of custody security, which was very strong.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Backup is also the wallet. But we realize that that's not regulated because you're not doing it by way of business. But you are literally custodying their money as well by holding that back up of their private keys. And most people will be storing the back of their private keys with friends or hopefully, or they might be storing it in a bank vault. But in which case, you're still storing your money in a regulated third party bank in that case, in which case why you use the hardware wallet if you're going to store a backup in a third-party regulated institution. So all of these things, you don't expect those to be regulated, and it's the same thing here. It's effectively fediment is the same as you storing the keys for acid.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“to make revenue books if you say I'm not and also if you add on things like well if you add on that you're doing it for people you have pre-existing relationships with and they're not and it's clearly it's like friends and family that's also just adds to the argument that you're not doing it by way of business if you can think of the idea if I'm going to store money in a piggy bank for my my kid I'm not a I don't need to regulate it's a licensed custodian If I go to the shop and buy stuff for a friend, I don't need to regulate as a payment institute. They give me money to buy stuff for them. Or if I buy something in a restaurant and I said, I'll pay you, you can pay me like next week. I don't need to be a credit institute to do that because I'm doing it not by way of business. And it's the same. If you are holding your private keys, if someone has got a hardware wallet and then they ask you to hold a backup of their private keys, those”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“There's multiple things that the system does and the design is designed to make it so that the people operating it have a strong case to be exempt from regulation. So one is, and this is very clear, you can see it on the website of very helpful website or the FCA, for example, is this guide do you need to be regulated or not? And one clear exemption is, are you doing this by way of business? And then he goes, well, how do you know it's doing by way of business? Well, there's no hard and fast rules and they never give harder fast rules. But examples, are you looking to make a profit from it?”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“If these people are friends and family or they have some sort of pre-existing non-commercial relationship, and if they are not looking to do this by way of business, they're basically not earning money. I mean, they can earn money if they want, but certain jurisdictions are fine with that. And if the way federations work, it means that they don't have a majority of keys, they have a minority of keys, they can't act single-handedly, then through various exemptions, they would be exempt from depending on the jurisdiction, they'll be exempt from regulation in most reasonable jurisdictions. By that I mean Europe, UK and US, for example, there would be exempt from regulation.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Is a background dealing with regulators, dealing with some of the largest law firms in the world, regulatory advisors, and so on. And so I had a very strong knowledge of all the different regulations that are happening in different places. And he said, well, I don't really think about that. I'm just making this incredible privacy technology, which it was. But then I thought about it for a bit and I realized if these people who are, and I can explain how it works in a bit, but if the people who are running these nodes effectively, these very mit nodes, we now call them guardians.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And then one lunch break, we were outside the front of Paranely police, if I pronounce it correctly, where Hakers Congress takes place. And I bumped into El Syrian, Eric Syrian. And he was wearing his cap and sunglasses and face masks and so on and so forth because he's very privacy focused. And I told him about my ideas and he gave me very, very honest feedback, i.e. for all these ideas were terrible. And I really appreciate it because I liked to get good feedback on these things. And then I wanted to hear about his ideas. And he then told me about Fedimint, which is a Portmontaux of federated Chao Mian. And it's the idea. And I thought, this is a really interesting idea, but isn't it going to be stopped by regulators and so on and so forth? Because, you know, I've had eight.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And I also realized that self-custody and the harder wallet solutions don't work in places where if you send 100,000 or 10,000 hardware wallets to Nigeria, you're lucky if 1% get through and don't get stolen on the way in deliveries or in certain regimes are they going to be sabotaged or all this sort of stuff. It just doesn't, it works in a Western context, but it doesn't work there. So I was thinking about ideas like using existing things that were already there, like Nokia phones. They're everywhere. They're users, doorstops in most places now. But they have the functionality and power to be hardware wallets, for example. And they pre-existed the invention of Bitcoin. So it's hard to think that chips could have been added to something before the threat was actually in existence. So I was looking to talk, Ayaz talking to some of the hackers and cypherpunks there about how we could redeploy their”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“For were to custody, and they suggested you. And they could have suggested wibble wobble exchange. I would have just gone with what they've said. So implicitly, I trust them more than you. I'm only using you because they told me to use it. And so that was something I to use Sherlock Holmesism, I stored in my mind palace just builds up there. But then I just left it. But then a number of years later I was at hackers Congress thinking about ways in which we could help get people off exchanges. I also had a very strong interest in the global south, especially even more so it's always been running through my experience at Coinflow, but it was just never going to happen. A UK regulated exchange with UK and European-based traditional finance-based investors, they were never going to have Nigeria as the second market. It was just not going to happen. But I'd always wanted to do this.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“You do. You do. And I realized that this was what was stopping most people moving across. So then I asked her and I thought about it. Well, who do you trust more than me as an exchange? And she thought about it and she went, well, I guess my friends and family, because they're the ones I asked.”
2022-07-20 · We Study Billionaires · BTC087: Bitcoin Fedimint - A Decentralized Custody Protocol w/ Obi Nwosu (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT