Pay with Bits, being the very first of its kind, is a Bitcoin transaction application through which the digital currency can be sent over text message, even internationally. It is a payment platform which allows one to send and receive Bitcoin payments in any currency using SMS.
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Pay with Bits, came right in time because having reached a market capitalization of $1 billion in March 2013, many Bitcoin enthusiasts got very confident, and a huge number of people got aware of and began to acquire more of this digital currency. This made more programmers and tech professionals to develop an interest in this promising technology. Something new to try their hands on. And certainly, any legitimate means or ideas which will make Bitcoin transactions easier while ensuring adequate security was welcome. But with many different Bitcoin wallets already available, and many exchanges functioning, what was needed was another kind of service to be rendered to Bitcoin owners.
Therefore, at the TechCrunch Disrupt NY hack down in 2013, a group of 6 hackers developed this app, Pay with Bits. They are Cody Byrnes, Prateek Gupta, Jon Bardin, Ben Daniel, Brett Mascavage and Brad Smith. Brad Smith sold his startup Focal Labs to RadiumOne in 2011 and is an engineering director there. However, the original idea for Pay with Bits came from Ben Daniel. Except for Brad Smith and Brett Miscavige, the other four hackers developed FreshTag.me in June 2012. Therefore, these names are not new in the tech world.
How to use the app “Pay with Bits”
To make use of Pay with Bits, you download the app on your phone, enter your bitcoin account information on the application and send. It is a whole new approach to carrying out Bitcoin transactions, because although Bitcoin can be transferred in a similar procedure, using a Bitcoin wallet. The phone application does it via text message to any other party who already has their account information on the application. The fact that this digital money, Bitcoin, can be sent just within minutes to another party internationally, makes this app more attractive, but Bitcoin can also be sent instantly with it.
The transaction carried out is still logged on to the Blockchain, and verification is carried out by Bitcoin miners. Therefore it is still a very secure process, and it is not a new way to carry out bitcoin transactions. It is simply a different method of doing it.
However, the app is currently undergoing some improvements, by its developers. These improvements are very necessary to keep it secure and enable it to withstand competition from other Bitcoin start-ups such as Bitinstant and BitPay. Smith wishes to add NFC capabilities as well to the application, and this easy-to-use phone application should soon be embraced internationally.
With Bitcoin having a market capitalization of over $96 billion currently (according to coinmarketcap.com), the app could get really big also. The method used by this application is for both the developed nations as well as the developing world. And since it is built on Bitcoin, transaction fees are nominal, and transactions are completely anonymous.