When PayPal started, they provided an innovative way for consumers to send money to and from accounts, with just the use of an email address. No wallet numbers were necessary. Another smart move was that the recipient didn’t even have to own a PayPal wallet. He would simply be prompted to sign up and take the money immediately.
Right now in the world of cryptocurrencies, payments still have to be sent to cryptic addresses that look something like 1BtjAzWGLyAavUkbw3QsyzzNDKdtPXk95D or TKT4UESIKTTRALRRLWS4SENSTJX6ODCW. On top of that, the receiving party has to compulsorily be in the system, and there’s no easy way of telling who the recipient is after a payment is sent. Such a system is obviously not very friendly for mass adoption. However, that might soon change.
The Byteball wallet (v. 2.0) aims to make the process of transactions between wallets not just as easy as with PayPal , but even better. A user can now send Bytes to an email address, even if the user doesn’t have an account on the wallet yet. When the recipient receives the email to notify them of the payment, they can add the money to their current balance. If they do not have the wallet yet, they are prompted to install it to be able to access the money.
The sender just needs to share the money tokens through a typical “share” option on their smartphone, essentially sending tokens through text (hence “textcoin”). The recipient receives the same link, but through a text or chat app.
However, this brings in certain security concerns as well, since usable chat services like text messages, WhatsApp, Skype, Telegram, WeChat, Viber, Slack, Messenger etc. might expose an unsecured connection at any time during which the transaction is made. For this reason, transactions should ideally be of smaller amounts, providing lessened risks.
In the event that the user makes some kind of mistake with the transaction, like making an error in the recipient address or choosing the wrong recipient, there is no risk of the money being lost. Instead, the sender can reclaim the money they sent using the same mnemonic, because the wallet ID is saved within the user’s wallet, and a “claim back” link is available on the transaction details page.
There is, however, one important difference from PayPal:
No money is held by a third party, which is the main concern with PayPal.
Instead, everything is sent directly, from sender to recipient, between peers to maintain the integrity of the crypto.