BlockTrail is Launching Multi-Platform Bitcoin Wallet – Part 2
Read on for further info on Block Trail. Is it worth investing in? Why do they have to build a wallet for Bitcoin users?
Continuing From The Previous Post
Block Trail’s decentralized approach to cryptocurrency is a lot leaner than likes of Coinbase from an operations point of view with a team of only around six staff at this stage. Claiming that it does not need to shell out big sums on regulation and compliance, so it doesn’t need to have as much investor capital in the bank.
According to Bechar, Coinbase operates more on the lines of a bank whereas Block Trail doesn’t offer these services planning to offer them later on through partners with the operation being very different even though the product seems the same to a person not very familiar with Bitcoin. He continues that they don’t have the kind of operation requiring compliance officers with a large team of operations when you run a big exchange like Coinbase with multiple different products with the different operation.
Adding on he says the regulation mostly comes into play where there is an exchange of some sort from a cryptocurrency to fiat currency as currently at the way structured they don’t provide the service .while there are plans to provide it they are going to do it through third parties and partners that they are working with.
Further On The Bitcoin Wallet
Clarifying further, although it does not have access to the user's bitcoins, Block Trail doesn’t come with zero knowledge as it can see the transactions knowing how many Bitcoin are stored in the wallet. Its wallet is a mobile phone app making it not the kind of place a clued up Bitcoin user would want to store huge amounts of coins.
It is possible that in case you hold serious BTC wealth, they are probably stored in an offline desktop client as a mobile Bitcoin wallet like Block Trail is only useful as a repository for a subset of coins in case you want to have some handy for trading/day to day use.
Bechar reckons BlockTrail to be their sole wallet for less well-heeled Bitcoin owners stating most people find they’re using one wallet when we get to the mainstream users they are probably using one wallet with having these spending limits keeping them more secure.
Hoping to grab100,000 users by the end of the year, Block Trail team says it is open-sourcing the wallet code too further bolstering trust in the claims. Free to use, the wallet comes with the business model focused on monetizing via added value financial services which coms via third party partnerships with Bitcoin brokers. For BlockTrail to take a small per-transaction fee for that added convenience, the aim is to make it easier for newbies to buy and sell Bitcoin.
How Do The Experts React?
While Bechar puts in it is certainly not going to be an exchange as it is going to be an easier way to buy and sell Bitcoin. As they keep looking to do that through parties already providing this functionality, these brokers worldwide as an example here in the Netherlands has a company selling Bitcoin integrating them further. In this case, it is being done through a global partnership network with brokers.
In the context, Vries adds that the exchanges where it is the best place to buy bitcoins at the best rate require a lot of effort while signing up and verifying the ID, verifying the address, and finally having to do bank transfers to them. While it’s a lot of hassle it also scares people as it just not an easy way, in case using an exchange it is recommended only if you’re a trader. It is a lot easier to use brokers as you don’t have to go through all the pain where most exchanges have and so want to partner with companies where eventually every country has a few and they’ve all figured out how to work within their regulations.
Pointing out that working with local partners again contrasts with the Coinbase approach, he adds its taking on the challenge to comply with all relevant Bitcoin regulations itself. it is the fact that they are going state by state dealing with all different rules in each state while spending millions on just all this basically and barely moving to Europe as here again they go country by country figuring out what the rules are as to how the banks are going to respond and when they want to do this. In this circumstance, if they can use local partners it allows them to get into the country quickly and hassle-free.
With few such partnerships inked in Europe and none in the US, at this stage, BlockTrail will be looking to build out a partnership network assuming it first galvanizes a solid user base behind another decentralized Bitcoin wallet play.