The private keys of the wallet are under the control of members of the community. The use of non-custodial purses is predictable when the adoption is greater.
Bitcoin Beach, a bitcoin (BTC) wallet that shares compatibility with the Lightning network, designed for use by the El Zonte beach community, in El Salvador, received criticism due to its centralization and because it keeps funds under custody. The developers and leaders of the project, clarify that they are progressively intending to create decentralization and non-custody.
This application, which is currently available for iOS and Android phones, is the official wallet of the Bitcoin Beach community. It is project-based in August 2019, and it managed to build an economy based on BTC on El Zonte beach, 50 kilometers from San Salvador.
To use the application as a wallet, It requires a telephone number first, which must be verified by the user utilizing a code that is sent by text message. It is also requested to activate geolocation, as it implements a map of shops that accept bitcoin in El Zonte.
Unlike other wallets, the Bitcoin Beach application does not give the user access to their private key. Therefore, whoever uses it, does not have total control over their BTC but the keys are in the hands of third parties that require trust.
The recent announcement of bitcoin becoming a legal tender in El Salvador, made this wallet appear relevant and many members of the bitcoin ecosystem expressed their opinion on the matter.@BTCAndres, bitcoin maximalist and popularizer on Twitter and YouTube, describes the wallet as “terrible”.
In the early days, the community used the Wallet Of Satoshi wallet, which is also custodial and bears great similarities in use and operation to the current Bitcoin Beach. This new wallet has been used since September 2020 and it is a shared custody wallet, whose private keys find their distributions among the members of the community.
The Creation of a Community Bank
In addition, as Nicolas Galoy, director of the Bitcoin Beach wallet developer, explained, they have created what they call a “bitcoin community bank”. It is a multi-signature protocol that grants the total safety of community funds. Once a week, the funds that merchants perceive directly go to that cold storage that remains under the protection of their proper private keys.
Among the non-custodial wallets that share compatibility with the Bitcoin Lightning network, which are easier to use and work without too many complications for novice users, Muun appears in a special mention. The features of this application for iOS and Android are well known.
The founder and president of the NGO Bitcoin Argentina, Rodolfo Andragnes, made public that he will soon be going to El Salvador and that, on the occasion of that trip, he will promote “with pride” that application developed by his comrades to assure that it works and operates properly.
By: Jenson Nuñez.
