Blockstack and ShapeShift Offering $50,000 Bounty
According to the latest news, two of the most prominent startups of today, Blockstack Signature Fund, the venture capital fund of decentralized internet company Blockstack, and Shapeshift, an exchange platform, have formed a partnership and are offering anyone who can develop a “universal” crypto wallet a bounty of $50,000.
Why Create a Universal Crypto-Wallet?
According a growth partner at Blockstack who is also a producer at Blockstack Signature Fund, Xan Ditkoff, while this type of a venture is extremely early in the cryptocurrency world, it is important that a wallet should be developed that will be able to support even cryptocurrencies that don’t yet exist.
Currently, most wallets can only support certain types of cryptocurrencies. This means that investors need to buy multiple types of wallets if they wish to buy different types of cryptocurrencies. Many users have to place their tokens in custodial wallets in crypto-exchanges. This poses a huge security risk, especially considering the number of hack-attacks that have stolen millions’ worth of cryptocurrency from such custodial wallets.
This new partnership is also a reflection of how consumer demands are changing. People are looking for that universal wallet, something secure as well as convenient. Additionally, both the companies believe that not supporting all coins can cost them in terms of developer interest.
If this bounty is successful, then Blockstack stands to gain a lot, especially in terms of using their platform. Ditkoff, in an interview, stated that users should not be discouraged from building on Blockstack just because their token isn’t represented on their platform.
Ditkoff said that as soon as Blockstack had formulated this idea, the obvious partner in this venture was ShapeShift, since the startup had possibly done the most compared to any other project with regard to users exchanging, adding and even holding new tokens.
This partnership is also beneficial for ShapeShift as it will earn revenue whenever customers use their platform to convert their tokens via their Application Programming Interface (API).
Conditions for the Bounty
The two startups have put certain conditions in place for this bounty. Firstly, the contestants need to utilize Blockstack’s storage, authentication and encryption technology. Secondly, this needs to be combined with ShapeShift’s (API) to ensure token exchange. And the target is to develop a wallet that supports not just all currently existing tokens, but also tokens that might exist in the future.
Contestants’ submissions will not be judged on the quality of their codes. Rather, Judges will assess how easy it is for the wallet’s code to be audited and used.
Contestants have until June 29 to submit their entries.