Consider transmitting cryptocurrency in the same way that you would send a text message to a buddy. That is precisely what new startup Coincast was founded to accomplish, and at the perfect time: Facebook is just beginning to integrate its Novi digital wallet technology into WhatsApp in the United States, enabling simple crypto transactions using the USDP stablecoin with no fees.

However, this is not limited to stablecoins.

Coincast enables you to send major cryptocurrencies such as Bitcoin and Ethereum to those who do not yet possess a digital wallet.

"We're making it as simple as sending a text message," CEO Albert Renshaw, who recently closed a series of transactions, said. A funding round, as I learned in a recent TechFirst episode. "You can send Bitcoin or Ethereum to the phone number of another person. And even if they don't have a wallet or any prior familiarity with cryptocurrency, the funds will be sent to this on-chain intermediary wallet that only they or you, the sender, will have access to."

This is straightforward for users.

However, Coincast performs a great deal of difficult arithmetic on the backend to enable this "intermediary wallet," as it does not assume possession of the cryptocurrency while it is in transit. Rather than that, Coincast deletes a portion of the private key that protects cryptocurrencies in non-custodial wallets and then brute-forces that portion when money are received. (For those who are unfamiliar with cryptocurrencies, non-custodial wallets are cryptocurrency wallets that you — and only you — control or possess. They are protected by lengthy and complex "private keys," which are effectively passwords. If you lose that password, you risk losing access to the Bitcoin for good.)

"What's good is that the user is entirely unaware of any of this... they simply receive a withdrawal PIN and enter it, and then it says 'loading,' and they have their money," Renshaw explains. "They are unaware that this is a part of a brute forcing operation or anything along those lines."

It is critical to make crypto accessible to the next billion people if they are to begin using digital currencies, minting NFTs, and engaging in web3 projects.

For the time being, it is simply too difficult and risky for the majority: crypto can become lost in transit, become inaccessible on your own smartphone, or even become lost in cold storage or a hardware wallet.

While the conventional world of banking has its own set of concerns and complications, these new ones, combined with the jungle of apps, phrases, and platforms in the nascent world of cryptocurrency, keep potential users and adopters on their toes.

"Right now, if you're using something like Coinbase Wallet, you're going to be working with Bitcoin or Ethereum addresses, which are big strings of hexadecimal characters and other characters," Renshaw explains. "You could utilise QR codes; that's a simple thing to do. However, in our perspective, everyone has a phone number, making it extremely simple to deliver crypto through phone number."

Renshaw educating families about Bitcoin years ago was part of the impetus.

Despite the fact that it was inexpensive and readily available, the majority of people ignored his advice and did not purchase any, simply because purchasing and keeping crypto was difficult. It has become easier over time, yet many continue to struggle.

It is simpler to use a custodial wallet, such as the Coinbase website. (Please note that Coinbase Wallet and Coinbase are distinct entities.) Coinbase holds custody of the cryptocurrency you store and manage on the company's website, which provides some benefits in terms of access, trading, and cashing out.

However, this does imply that you are not totally in control of your own currency.

Additionally, it implies that consumers must undergo Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures, which adds additional complexity and difficulty to the process of getting started. (I attempted to instil a small amount of crypto in my children. They abandoned their mission before I could send them any.)

Bitcoin is already notoriously difficult — and irreversible — to use that even cryptocurrency companies frequently transmit payments in error. Compound, a decentralised banking platform, recently sent $90 million of its own tokens to the wrong people, causing the CEO to plead with them to return the monies freely.

Therefore, anything that makes it easier is definitely a good thing.

Including the recovery of crypto in the event of a tragedy.

Although Coincast is a non-custodial wallet, users can select a feature that allows Coincast to retrieve lost assets. 

"We actually secure customers' wallets through a mechanism we developed called Presign Protection, which is also patent-pending for us," Renshaw explains. "If the user has opted in, they are not required to do so, but if they have, we sign a transaction that effectively drains your wallet into our corporate cold storage. We do not make the transaction public. We simply sign it in advance to ensure that it is a genuine transaction. We then encrypt it using a strong 256-bit key and store it on our servers. Thus, potentially, a year from now, if you discover, 'I lost my PIN, I don't have access to my wallet,' we may then authenticate ownership through the courts or some other mechanism."

Cryptocurrency purists will never do such a thing.

However, granny may, and while trusting the Coincast not to do anything nefarious with your funds is necessary, it also provides piece of mind that the Ethereum you forgot about in 2021 and which is worth $250,000 in 2030... is genuinely recoverable.

Renshaw has no intention of abandoning cryptotexting. Interfacing with DApps (decentralised applications) and web3 projects, as well as NFTs, is the next step.

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