Indian cryptocurrency startup Blockonomics has launched BTCMail, where users can gift bitcoins via email is an easy and secure way.
According to Shiva, founder and CTO of Blockonomics, the BTCMail is ideal for gifting/sending BTC to anyone who doesn’t already have a bitcoin address. After sending bitcoin as gift, the recipient receives a redeem code that can be used to claim the digital currency.
The blog post also explained few problems associated with this approach. There are high chances that the server can be hacked and also at times when server can have downtime in which case bitcoins cannot be redeemed. Also, there are chances that owners of the server can turn rogue after collecting enough bitcoins.
To curb these issues, the company uses a distributed trust model based on Split key generation, where the sender and blockonomics have only part of the private key but can generate the public bitcoin address. On the other hand, the recipient has both parts of the private key and can claim the bitcoins.
“In fact, the recipient can redeem bitcoin even when blockonomics server is down by mathematically combining the private keys,” the post stated.
