Coinbase introduces Bitcoin micropayments tool

coinbase micropayments

The US-based exchange service Coinbase officially announced the launch of their Bitcoin micropayments tool allowing website owners and bloggers to monetize content.

Now, instead of showing appreciation to authors with “likes” and emoticons of all kinds, readers will be able to reward them with tiny amounts of money with a single click, all thanks to the utility called Coinbase Tip.

First, one-click micropayments will be made available to Coinbase users who will have a chance to test the utility’s functionality before others get access to it. Coinbase Tip will be tested in a number of popular blogs, including the ones kept by TV host Adam Carolla and venture capitalist Fred Wilson.

The default value of micro-transactions will be set to 300 Satoshi (about $0.1), but it can be reduced to $0.01 if necessary. According to Coinbase, all Bitcoin micropayments will be conducted outside the block chain; the company intends to compensate the commission for block chain transactions to miners.

Coinbase CEO and co-founder Brian Armstrong acknowledges the growing global interest in micropayments, and says Coinbase Tip is just one of the possible ways in which the company promotes Bitcoin to the masses. Armstrong is sure that micropayments buttons will help consumers to gradually become more familiar with Bitcoin.

Coinbase Tip provides different functionality depending on the user’s software: users having Coinbase wallets will get direct access to one-click payments, while the ones using third-party software in conjunction with Coinbase Tip will have to perform additional steps.

Coinbase has come up with their solution exactly in the period when Bitcoin micropayments get increasingly popular: micro-transactions are mentioned more and more frequently in the media, while Dogecoin received $445,000 of investments to launch their Dogetipbot micropayment tool.