Solution (source code)

= Solution

Write $z=x+iy$. Both moduli are nonnegative, so squaring preserves their strict inequality:
$$
|z|<|z-i|\quad\Longleftrightarrow\quad x^2+y^2<x^2+(y-1)^2
\quad\Longleftrightarrow\quad 2y<1.
$$
Thus
$$
\boxed{c=\frac12.}
$$
The boundary is the perpendicular bisector of $0$ and $i$ in the <complex plane>; the strict inequality selects the half-plane containing $0$.