What is federated custody technology, and how does it secure my bitcoin?

There are a lot of options for managing digital resources like your money and your data.

You can choose to self-custody your digital resources, or you can store them with a third party, and access them through an app or website when you need them.

If you control your own money and data, you can share them at your sole discretion.

If you let someone else you don’t know manage them, you may get some additional features but you often won’t know who ultimately controls your money and data, which country they’re in, what restrictions can stop you accessing them, or whether your resources are truly safe.

Fedi is different. It makes it easier for people to keep their money and data in their local communities, which are looked after by known and respected community leaders.

You choose the communities and the leaders (we call them “guardians’’) you feel comfortable trusting with your resources, from many competing Federations.

Rather than self-custody or third-party custody, we call this federated model second-party custody.