Fedimint addresses a significant attack vector of the Bitcoin network: centralized custodians, such as exchanges holding keys to large amounts of its customers’ bitcoin. The world needs to look no further back than FTX for an example of such a custodian’s multi-billion dollar loss.

Fedimint claims to offer a “second-party custody” solution for Bitcoin. That wordplay refers to one’s friend or relative, instead of an otherwise corporate and impersonal third-party. Fedimint also aims to provide greater privacy in transactions using so-called federated Chaumian mints.

So, how does it work?

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