How DropBit Works
Bob wants to sends Mary .005 BTC. She doesn’t have a bitcoin address or wallet yet, but he has her phone number in her contact list. He selects her from the DropBit App and sends a DropBit™ of .005 BTC to her. The Bitcoin address request is saved on our server.
A text message is sent to Mary that says she has .005 Bitcoin waiting for her from Bob’s phone number. She has 24 hours to install the DropBit app and verify her phone number.
Mary receives Bob’s request for a Bitcoin address from the server and fulfills the request by sending a Bitcoin address from her wallet up to complete Bob’s request.
Bob gets a message that Mary is setup to receive Bitcoin and has an address waiting for his .005 BTC request. Bob opens up his DropBit app and the transaction is sent directly from his wallet to her wallet.
DropBit to Existing App Users
When verifying your phone number or Twitter account, a small reserve of Bitcoin receive addresses will be put on the server and associated with your phone number or Twitter hash.
When another existing user attempts to send Bitcoin to your phone number or Twitter, that phone number is hashed and one of the associated receive addresses is instantly delivered to the sender.
A normal Bitcoin transaction can now be sent using the requested address.
Privacy, Security + Ownership
The DropBit wallet is a safe and secure Bitcoin wallet experience
and CoinNinja as a company puts heightened emphasis on
transactional privacy and security.
Your private keys never leave the DropBit app. The keys for your Bitcoin wallet are owned, kept and controlled entirely by YOU. Bitcoins are never in our possession. DropBit only deals with sending and receiving addresses.
In hopes to provide the best user experience and remove friction where possible, DropBit's Lightning wallet is custodial. This allows our users to quickly and seamlessly make Lightning payments without the hassle of managing their own node or channels.
Every server request for sending addresses (and everything else) is signed by the user’s wallet at a derivative path, not related to your Bitcoin addresses. We validate this signature with the public key that is associated with the phone number during verification.
We do not store any of your contacts on our server. Instead, during the phone number verification process, DropBit sends us a cryptographic hash of your phone number. This hash is used for contact discovery. When a DropBit user attempts to send via phone number, that number is also hashed and our server will inform the app if the recipient is a DropBit user. Thus, your contacts remain safely on your phone and our servers never see contact details unless an invitation via SMS is required.
*To unlock all DropBit features and functionality, users must verify their phone number and confirm they have backed up the recovery words provided during the wallet setup.