Oddbean new post about login | logout It's interesting. I'm just trying to wrap my head around why I would use it or anyone else for that matter. Seems counter intuitive to being a bitcoiner in my honest opinion. It flips the script back to trust , not trustless. Strange right?
Well, most of us here on nostr trust custodians. You and I both use alby for zaps. If you're from a developing country and can only save modest amounts, you can't save with on chain Bitcoin or pay for your own lightning channel. Or if we want the whole world to hyperbitcoinze, there isn't enough block space. And so a trust trade off needs to be made to scale.
I think the original use case was for physical communities. The fedimint is multi-sig and would have 3 keys that are held by 3 different respected people in the community. Would mean that rugging is far less likely to happen. It allows a community to have their own circular economy while also allowing people to cash in or out. I don’t really see the point of them for online communities aside from privacy. Externally, all that gets seen I think is a lightning transaction IN to the fedimint and then the transaction back out is blind? Not 100% but the idea was that it was harder to analyse lightning transactions I think