Wednesday, 23 September 2020

Coinkit Tip-Bot and Money In A World On Social Media

Even though it is no longer possible to imagine a future without blockchain based finance, there is no complete clarity on how the world might get there. What is known for sure is traditional finance was very poor in responding to the internet and social media revolutions. It took a lot of effort from independent entrepreneurs to make centralized money spendable on the web but even then without wide social media integration. This is where cryptocurrency takes the upper hand by being independent as “money” is created by a system that runs itself. Once it was out there, social media integration came out quite early as it requires middle solutions much simpler than traditional finance does. The most significant of these solutions is called a tip-bot, which is a social media account based cryptocurrency wallet application. Today we are going to review Coinkit, a multi-currency and multi-platform tip-bot and discuss why such application might be the key to the future of finance.

Developed by German blockchain startup Blockcurators GmBH, Coinkit is a cryptocurrency wallet integrated into social media platforms Slack, Discord, Telegram and Twitter, with currently eleven different currencies including DOGE, BNB, DGB, TZC, FTC, TUBE, QTUM, ARK, UFO, NXS and PIVX. The superiority of tip-bots start from the beginning as these applications don’t have the complex sign-up procedures of traditional e-payment solutions, and in case of Coinkit, there is no sign-up at all. Any user can deposit coins and send them to anyone else on the same platform right away. The experience is the equivalent of using cash on social media, especially considering Coinkit is charging no fees.
The only difference is that the bot is designed for public use, by replying to a tweet or posting in a Discord channel. All commands are processed as quickly as possible. Different than some other tip-bots, Coinkit is processing tips on-chain. Transaction speed is ensured by giving a higher than the average fee, which is also the case for withdrawals. The overall experience is seamless and practical with the addition of group tipping and price/convert commands.

In addition to basic transaction, Coinkit also comes with social media engagement features. Defined as tweet monetizing on Coinkit Wiki, by adding a command to a tweet, the bot rewards each user who retweet or retweet with comment. So far, this is the easiest way to incentivize social media engagement. Although a limit is set during initiation, there are further commands to observe or stop the monetization process anytime. Coinkit confirms any change with a public response. Another engagement feature is the channel tipping addition to the tip command which rewards the set number of users posted in a channel, starting from the last. This is a feature used widely by servers on Discord and Telegram to incentivize chatting.

The advantages of cryptocurrency tip-bots over traditional e-payment aside, there is still some development needs to be done.  The most important missing feature is a rescue mechanism. The entire solution relies on social media accounts on which social media service has the ultimate control, and history shows that services such as Discord and Twitter terminate accounts quite easily and offer little to no customer support. Since social media services cannot be relied on, a service like Coinkit should employ a method to guarantee balances in case an account is lost. This can be as easy as associating an email address. On that note, it is rather surprising that Coinkit didn’t take advantage of multi-platform support by account association, which would make an additional rescue method unnecessary, and it would also afface the
inconvenience of having to withdraw/deposit between platforms.

The most astonishing aspect of Coinkit, or tip-bots in general, is how quickly cryptocurrency could be integrated into new platforms, as opposed to centralized money which is only usable via special services for considerably high fees. With multi-currency and multi-platform support, Coinkit today is a prototype of how money is going to be processed in a world growing on the web and social media. That might not be a far future as blockchain based money is becoming a more widely accepted standard day by day.

By Cream Team

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