Will bitcoin platforms attract developers?
OK but i really want to know about will bitcoin platforms attract developers? If you have any information about that please give me a answer.
Hi @perterrussel i have an answer about that question.
Every tech company is building a “platform” when they are speaking with investors, but there simply aren’t many true platforms in bitcoin. I’d argue that there are currently only two nascent bitcoin platforms worth watching in 2016: Coin base and 21 Inc.
(Both happen to be the industry’s investor darlings, so maybe there’s something to this whole platform thing.)
Of the two, 21 probably has the edge given the company is ‘fiat-free’ and won’t risk jeopardizing its business if a third-party app developer misuses the product.
21 needn’t worry about what its users do with the virgin coins they mine on their devices: 21 isn’t even transacting in bitcoin, they’re merely selling the hardware to create new bitcoins. Brilliant for keeping regulatory costs – both tangible (legal fees) and intangible (employee headache) – down to near zero.
The Coin base compliance team, on the other hand, is on the hook if apps built using Coin base’s ‘wallet-as-a-service’ promote money laundering or illegal money transmission.
That said, 21 may have to worry about the economics of its mining chips.
By CEO Balaji Srinivasan’s own admission: "Crucial to [the success of bitcoin as a fundamental system resource] is the idea that bitcoin generated by embedded mining is more convenient — and hence more valuable — than bitcoin bought at market price and manually moved over to the site of utility."
Early returns on these chips suggest that users would have to consider the marginal convenience of acquiring bitcoin via on-device mining worthy of a ~10x (or greater) premium versus simply creating and funding a wallet.
Building on Coin base might be risky and expensive from a compliance perspective. Building on 21 might be just downright expensive.