Innovative services are not difficult to come by in the world of cryptocurrencies. A lot of projects focus on combining existing technology with this new paradigm of money. CoinText is an interesting example, as it offers a way for users to send Bitcoin Cash through text messages. Although this business model is not entirely new, it does show there is an intriguing connection between existing and new technologies.
WHY DOES COINTEXT MATTER?
It is evident there is a growing need for solutions which bring cryptocurrencies to the masses. Despite the innovative aspect of this new form of money, it is something a lot of people seemingly do not care about in the slightest right now. Moreover, it is not possible to conveniently obtain Bitcoin and other cryptocurrencies in every part of the world, which means some big changes will need to be introduced sooner rather than later.
African companies have been experimenting with combining cryptocurrencies and text-based payments. Bitpesa is a great example of this, as it allows users to send Bitcoin through text messages in a few countries. Initiatives like these can be incredibly powerful, even though there is opposition from local telcos and even governments when it comes to cryptocurrencies. It is expected that such opposition will not quiet down anytime soon.
Thankfully, it seems more services are trying to combine text messaging and cryptocurrencies. CoinText is a great example of how both industries can come together in a meaningful manner. Although the service is still in private beta as we speak, the concept of CoinText certainly holds a lot of promise. On paper, the project is all about letting users transact Bitcoin Cash with any mobile phone on the planet today. It is a very interesting strategy which will bring a lot of positive attention to the cryptocurrency industry as a whole.
Making it easier and more convenient to both send and receive cryptocurrency on a global scale can only be considered to be a good thing. CoinText won’t require users to register for an account or download any software, which is a positive development. There is no need for an internet connection either, as a BCH wallet address can be obtained by sending a text message to the service provider. Whenever someone sends BCH to a phone number which doesn’t have a BCH wallet set up yet, it will be automatically created on behalf of the recipient.
Additionally, the service will not hold onto user funds. All transfers are settled on-chain, as this is not a custodial service whatsoever. Nor does the company store any information regarding phone numbers, private and public keys, or transactions made using this new service. That in itself is pretty interesting, as it shows there is a strong focus on privacy and anonymity. With its global availability, things will certainly get interesting for Bitcoin Cash once this new system goes public in the coming months.
It is also remarkable to see that a service such as CoinText prioritizes Bitcoin Cash over Bitcoin. This is another feather in the cap of the popular altcoin, as most people would have assumed such a service would focus on Bitcoin first and foremost. That is obviously not the case right now, as more and more service providers have stopped dealing with Bitcoin altogether. It will be interesting to see what this new service does for the global popularity of Bitcoin Cash once it becomes available to everyone. That’s scheduled to occur next month, although no specific date has been announced as of right now.
Source: The Merkle