Blockchain and Bitcoin Use Cases: ChangeTip & Bitproofby Fintechnews Singapore October 8, 2015
The Bitcoin protocol has caught the eye of many. Financial institutions are exploring how they could possibly use distributed ledger technology for institutional banking; startups are finding new ways to use the blockchain for anything from identification, to document certification.
But still, what exactly can we do with Bitcoin?
Today, we take a closer look at two startups that are utilizing Bitcoin for two completely different purposes.
Because bitcoins can be transferred easily and almost instantly in a peer-to-peer manner, many have argued that the cryptocurrency fits just perfectly for micropayments.
One startup, namely ChangeTip, went viral back in October 2014, processing some 10,000 tips in just one day.
Founded in 2013, ChangeTip is a micropayment platform built by San Francisco-based startup ChangeCoin, which specializes in online micropayments using bitcoin.
ChangeTip enables users to send micropayments across various social media websites including Twitter, YouTube, Reddit and Facebook, as well as email and text messaging.
Sending a tip on Twitter for instance, looks like this:
According to Dan Held, VP of Product at ChangeTip, micropayments “unlock an entirely new way to monetize content and users on the Internet. Micropayments are one of the killer apps for Bitcoin.”
In December 2014, the company raised US$3.4 million in venture capital funding led by Pantera Capital. At the time, 50,000 social media accounts had connected to ChangeTip, the company reported.
As of January 2015, ChangeCoin estimated that over US$250,000 had been tipped since its inception, with transaction sizes ranging between US$0.00001 and US$100.
While bitcoin might have been the first use case of the blockchain, it is certainly not the only one. Beyond monetary use, many applications of blockchain technology have been explored, including for recording ownership and certification.
Led by 18 year-old entrepreneur Louison Dumont, Bitproof does just that.
His startup provides a platform that enables individuals and organizations to certify documents through a simple interface, proving thus the documents’ existence and ownership.
Bitproof provides users with two services: SealX is a tool that lets you create frosted contracts that are sealed forever and valid worldwide, and GeniusX is a tool that allows you to protect your Intellectual Property.
To put your contract on the blockchain, you only need to follow these simple steps.
First, you upload your contract on the platform. Then, you seal it by making each party record a video acknowledging its content. You will then get a certificate linked to the bitcoin blockchain, which proves the existence, the terms and the ownership of the document.
And this service will only cost you 20 bucks. That’s much much less than what your notary would charge you.
Earlier this year, Bitproof had been selected to join Boost VC, an incubator based in California. At the age of 17, Dumont has been so far the youngest entrepreneur to be accepted into the program.
Image credit: Bitcoin V2, Flickr.