A startup called CoinText has developed a solution to send Bitcoin Cash (BCH) via SMS. That would allow the adoption of this cryptocurrency to rise in areas where there is no good Internet connectivity.
CoinText allows its users to send Bitcoin Cash (BCH) via SMS
The CoinText tool is now available and has enabled the first Bitcoin Cash (BCH) transactions via SMS, according to a tweet published by the company on August 31st. CoinText currently offers its services in the United States, Canada, the United Kingdom, Australia, the Netherlands, South Africa, Switzerland, and Sweden, according to the company.
According to the information on its website, CoinText works by using each user’s full number (including area and operator codes) as a unique identifier to create the seed of a new Bitcoin Cash (BCH) wallet. Once a portfolio has been generated, the application provides an API that communicates with a global SMS gateway provider that provides network access and allows coins to be sent via text messages without the need for an Internet connection. CoinText will charge a flat fee of 10 BCH satoshis.
The team warns that the platform does not store any information and depends on some third party services and all transactions are immediately settled in the blockchain. For this reason, they do not recommend its use for storing large quantities of coins.
Sending cryptocurrencies via SMS is not a new method
The CoinText method is something new for sending Bitcoin Cash (BCH) via SMS, but, in the past, similar tools have been developed for sending other cryptocurrencies. For example, in early August, a Californian company called Intuit was able to patent this kind of service for Bitcoin (BTC).
Similarly, an update made by the Samourai Wallet in January included a similar tool that offers the ability to send Bitcoin (BTC) via text messaging, just like CoinText does with Bitcoin Cash (BCH).
Also in August, a startup launched an application that allows its users to send Litecoin (LTC) via Telegram instant messaging app. The Zuluc Republic, the company behind the project, announced that it plans to include the SMS feature.
Jackson Bey was born and raised in Lethbridge Alberta but moved east when he was 22. Apart from running his own consulting firm. Jackson spends his time canoeing the many lakes of Ontario. As a financial journalist Jackson has published stories for CBC Business Online, as well as Buzz Feed and Motherboard. As a contributor to Billionaire 365, Jackson mostly covers markets and trade.