Bitai Wallet develops a coin deposit platform SDK, making it easy for Bitcoin startups to build a coin deposit platform

In the field of Bitcoin entrepreneurship, the most common thing people do is to "deposit coins on a platform" (some people also call it an "OFF-CHAIN ​​platform" or "bank"). Exchanges are actually platforms for depositing coins, such as OKCoin, Huobi, Coinice, etc. Users deposit coins on exchanges to meet their needs for placing orders to buy and sell Bitcoin.

For example, those financial management websites that have sprung up like mushrooms after a rain (including cloud computing power, etc.) are essentially currency storage platforms. Users deposit Bitcoin into these platforms for interest and mining income.

Various so-called "OFF-CHAIN ​​wallets" are actually currency storage platforms. Users choose to store their Bitcoins on such platforms in order to use extended services on the platform, such as shopping and rewards.

Since exchanges, financial management websites, and OFF-CHAIN ​​wallets all fall into the category of coin storage platforms, what exactly is a coin storage platform? Can we give a clear and accurate definition of a coin storage platform?

In fact, it is very simple. A coin deposit platform is a platform where "users choose to store bitcoins on the platform in order to use the services provided by the platform." From this perspective, a coin deposit platform must be able to do at least two things: 1. Deposit; 2. Withdraw. In most cases, it is enough for a platform to do these two things well. Of course, it can also consider supporting transfers between users, which is what we often call "OFF-CHAIN ​​transactions", which is very complete. Now that we have a general understanding of what a coin deposit platform is, how can we develop a coin deposit platform?

The simplest way is to run bitcoind on the website's server, and then use bitcoind to assign deposit addresses to new users and manage users' withdrawal requests. The website program only needs to deal with bitcoind.

In the past few years, many websites have done this and lost a lot of coins, for example:

1. A few years ago, Bitomat restarted Amazon's AWS EC2 instance to upgrade the memory, resulting in the loss of the wallet.dat file, resulting in a total loss of more than 17,000 bitcoins;
2. A few years ago, Bitcoinica was first stolen more than 43,000 bitcoins due to Linode problems. Not long after (a month later), more than 18,000 bitcoins were stolen again;
3. Domestic Bitcoin piggy banks also claim to have lost thousands of Bitcoins;

In response to this situation, BitTorrent has developed an enterprise version of the wallet to help companies "cold" manage Bitcoin from the beginning of deposit. Currently, the CoinNice trading platform is already using the enterprise version of the BitTorrent wallet.

Now, enterprises can "cold" manage Bitcoin through Bitcoin Enterprise Edition, which is obviously far better than running bitcoind on a website server and facing the risk of hackers stealing coins at any time. But even so, enterprises still need to do a lot of development work, which often becomes the biggest cost for many Bitcoin startups, greatly raising the threshold for Bitcoin entrepreneurship.

In response to this situation, the BitTorrent team is currently developing a "coin deposit platform SDK" to help Bitcoin startups build their own coin deposit platforms based on the "BitTorrent Coin Deposit Platform SDK" without development, for example:

1. Enterprises no longer need to develop user systems. BitTorrent's "Coin Deposit Platform SDK" directly provides a user system based on mobile phone, email and other registration methods, and has built-in mobile phone verification and Google secondary verification functions;
2. Integrates the relevant functions of the Bitcoin Wallet Enterprise Edition, and all bitcoins on the deposit platform are stored in "cold" storage;
3. Provides complete transfer function between users (OFF-CHAIN ​​transaction);
4. Provides the simplest web and mobile UI experience, and users can adjust, customize and modify the interface according to their needs;

By providing a "coin deposit platform SDK", the threshold for Bitcoin companies to start businesses can be greatly lowered, allowing companies to focus on their own business logic. For example, exchanges can focus on how to better develop transaction matching engines, and financial management websites can also focus on how to better design financial management products. This is obviously very meaningful.

Author: Bitai Wallet
Editor: Meng Dada
Source: Babbitt Information