Bitai talks about the development trend of the 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 deposit coins platforms, such as OKCoin , Huobi, Coinnice , 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 " , so that it 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 easiest way is to run a   bitcoind , and then use   bitcoind is used to assign deposit addresses to new users and manage withdrawal requests. The website program only needs to   Just 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 to upgrade memory   AWS   EC2 instance, resulting in   The wallet.dat file is lost, the total loss   More than 17,000 Bitcoins;
2. A few years ago   Bitcoinica , first   Linode issue was stolen   More than 43,000 bitcoins were stolen again not long after (one month later)   More than 18,000 Bitcoins;
3. Domestic Bitcoin piggy banks also claim to have lost thousands of Bitcoins;
     In response to this situation, BitTorrent developed an enterprise version of the wallet, which helps companies " cold " manage Bitcoin from the moment they deposit funds, effectively protecting the security of corporate users.   Coinnice has been using the Bitcoin Enterprise Edition since its trial run to protect users' Bitcoin assets.

        Now, enterprises can manage Bitcoin " cold " through Bitcoin Enterprise Edition , which is obviously far better than   bitcoind is a solution that runs on website servers and faces the risk of hackers stealing coins at any time. However, even so, companies still need to do a lot of development work, which often becomes the biggest cost for many Bitcoin startups and greatly increases 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 terminals   UI experience, 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.

We hope that through our efforts, more similar   Companies using Coinnice can design and develop their own Bitcoin products more easily and safely, making Bitcoin entrepreneurship more exciting!