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The general concept of Bitcache is that it provides an online reward structure for online content providers. By linking every file transfer to a small bitcoin microtransaction, the Bitcache system provides a feedback mechanism to users with a value associated with each download.
Bitcache is designed to overcome the scaling limitations of blockchain technology which restrict the number of transactions the bitcoin network can handle. In October , a successful public funding campaign on BnkToTheFuture raised more than 1 million USD to fund the platform, with the first half raised exclusively through bitcoin investment. These plans were blocked after the Canadian Securities Exchange demonstrated a bias against the proposed merger.
As of January , the technology's cryptographic logic is done [10] and a team of 12 is getting the service ready for a first release. Bitcache Initial release projected Development status Active Type Micropayment Privacy Bitcoin wallet Bitcache is a blockchain powered service that links file transfers to bitcoin microtransactions [1] , created as a private sidechain with Lightning.
Retrieved 11 August We're now putting muscle on the skeleton. This method has also been called a form of underage gambling. Items and features available by microtransaction can range from cosmetic such as decorative character attire to functional such as weapons and items.
Some games allow players to purchase items that can be acquired through normal means, but some games include items that can only be obtained through microtransaction. Some developers [1] [2] ensure that only cosmetic items are available this way to keep gameplay fair and balanced. Microtransactions are most commonly provided through a custom store interface placed inside the app for which the items are being sold. Mobile web analytics company Flurry reported on July 7, , that based on its research, the revenue from free-to-play games had overtaken revenue from premium games that earn revenue through traditional means in Apple's App Store, for the top grossing games when comparing the results for the months of January and June It used data that it analyzed through 90, apps that installed the company's software in order to roughly determine the amount of revenue generated by other popular apps.
This makes free-to-play the single most dominant business model in the mobile apps industry. They also learned that the number of people that spend money on in-game items in free-to-play games ranges from 0. Even though this means that a large number of people will never spend money in a game, it also means that the people that do spend money could amount to a sizeable number because the game was given away for free.
Electronic Arts Corporate Vice-President Peter Moore speculated in June that within 5 to 10 years, all games will have transitioned to the microtransaction model. Many consumers have referred to video game micro-transactions as a means of 'milking' their product for more profit. Consumer organizations have criticized that some video games do not describe adequately that these purchases are made with real money rather than virtual currency.
Also, some platforms do not require passwords to use a credit card to complete microtransactions. This has resulted in customers getting unexpectedly high bills known as bill shocks. In late some organizations, such as Belgium's Gaming Commission, have called for the banning of loot boxes, claiming they are a form of gambling.
Microtransactions have become increasingly common in many types of video games. Smartphone, console, and PC games all have conformed to the use of microtransactions due to its high profitability. SuperData is a company that does Qualitative and Quantitative research on video game markets and spending habits of consumers.
SuperData collaborates and is essentially hired by a variety of companies, ranging from banks to game developers. They work in favor of the companies that either hire them or share data with them, creating business strategies, outlining profitable regions in the gaming market, and making companies seem more appealing to investors. SuperData gets a massive amount of data involving consumer spending habits, consumer games preferences and even their interest in certain brands.
This information is obtained through the companies they work with. PayPal and Visa are two of the companies that share consumer spending habits with SuperData for them to conduct their research. In addition to this, companies like Google, Apple, Blizzard and Twitch are also partners. With all this data collected, it allows video game companies, like EA, Blizzard and Ubisoft, to implement microtransactions safely into their games, knowing what regions and types of business models they will have success with.
The collection of this data on consumers, although technically legal [ where? Companies are selling data about consumers, involving their spending, bank information, preferences, ect, all to overall understand the consumer better, making business models for gaming companies safer and more profitable.
Considering all the companies involved, the limits to the data being shared are endless. Visa, Google, Microsoft and PayPal already have so much data on consumers, and are freely able to share it.
Google specifically holds information on more than just video games, which raises questions of what they are sharing. With the microtransactions already under a negative spotlight from the gaming community, people may not be happy to hear that data on them is being shared to make microtransactions possible.
Bitcoin wiki microtransaction The general concept of Bitcache is that it provides an online reward structure for online content providers.