Bitcoins and cryptography inside a browser with a wallet like the WeTipCoins Wallet or the CoinAwesome Wallet can be used for several applications. It starts with transfering value, secure authentication and naming.
Hereby one’s browser wallet would be a classical spending’s wallet. The wallet which you use for every day purchases, wherever you go on the web.
Transfering value with Bitcoin is done the push-way. This means no charge-backs and a higher security in general because you never grant anybody access to your bank account, like with credit cards. Credit cards are typical pull-payments, where you type in your credentials and give access to your bank account. Then you would need to check every now and then whether the right amount got pulled out of your bank account. With push-payments and crypto-currencies you only transfer so much money as you need to and the payee can be sure of every cents he receives (no chargebacks).
- tip voluntary owners of websites after consumption of digital content
- tip to unlock or tip-wall, e.g. for reading an article
The main difference between tips and payments is usually that the amount of a tip is arbitrary while a payment is fixed. Also, especially with digital content online, we usually pay for the content before we can access it, while when we tip, we do the transaction afterwards.
Depending on the users tips can generate more revenue than payments as they also let the user feel better. With the WeTipCoins Wallet the tips also get aggregated in a nice way so that they can be discovered and discussed.
A crowd-funding is usually somewhere in between a payment and a tip as it usually promises to reward you for your donation/payment. Also the amount is usually arbitrary and depending on your amount you get more or less back.
- pay to unlock or pay-wall, e.g. for downloading a PDF
- pay per minute, e.g. for watching a video
- pay for digital and physical products
Hereby the granularity, security and speed compared to traditional payment systems increases. Charge-backs are not anymore possible.
Further the cryptography which signs a Bitcoin transaction can also be used to sign a cryptographic challenge and in this way authenticate you as the owner of a Bitcoin address/identity against third party services. Means: the wallet lets you ‘log-in’ into other services and despite not using a password even more secure.
Since your identity is not bound to a server but inside your wallet, it can not be taken away from you, except somebody has got access to your computer.
And due to the fact that all transactions and identities are public on the Bitcoin blockchain social relationship graphs can be created. These relationships can be used to create a web-of-trust. For example on WeTipCoins you automatically follow the people you tip through the WeTipCoins Wallet.
The blockchain of Bitcoin and/or other crypto-currencies like Namecoin can be used to build a new kind of Domain-Name-System (DNS) where the names get registered on the blockchain itself. This is more secure and definetly more decentralized than the existing DNS, which only 7 people control.
Naming can be used for your Bitcoin Address/ID, for IP-Addresses or for hashes of files, too. The WeTipCoins Wallet will make possible to put a name on everything very soon.
Tip the author bitcoins: 12vTQhHcgj8Eqoe2mwyAb7QYSoosxpEYYs