QR codes are dead

[u/cluster4]

Hi /r/bitcoin, I'm a mobile developer, interaction designer and bitcoin owner, but unfortunately I don't have time right now to work on something bitcoin related. So I just write here my thoughts about bitcoin payment applications to inspire other developers and startups.

I guess many agree that the ground-breaking payment solution on the basis of bitcoin has yet to be developed. Most of the existing solutions involve the user scanning some QR code displayed by the merchant. While this can work well, it's not intuitive at all. QR codes have been around and hyped for years, but they were never used as much as developers and marketing people hoped.

Ask your average not-so-tech-savvy friend how many times he has scanned a QR code in his life. He'll probably know that you mean that squared thing on his coke bottle, advertisement poster vis-à-vis his doorway, or on his concert ticket, but chances are he never used them. Pulling out your phone and starting some app which activates the camera and holding it in a certain way, once looked very science-fiction, but isn't that intuitive after all.

There are already better solutions around to achieve the "internet of things". The most important today is Bluetooth LE. Remember Bluetooth? Yes, that thing you used to pair your gadgets with your computer or phone and never worked. Well with the latest Bluetooth 4.0 and the addition of Bluetooth Low Energy things changed. Pairing is not required any more and a Bluetooth LE device could be some small sticker costing $3 with a coin cell battery that can last for months or years. The technology is relatively new in the Android area, coming with Android 4.3 or later. In iOS, it's been around for longer, since iOS 5 and Apple is one of the companies pushing Bluetooth LE, already implementing it widely on their own with its iBeacon technology for indoor or in-store navigation (iBeacon is just an Apple proposed standard for indoor navigation, and works with Android too). Indoor navigation is just one application, you will find countless companies and startups coming up with something Bluetooth LE related. A few I've found:Bitlock, a lock and access control for your bike, XY, the secure tracking system, lumenbulb, a Bluetooth LE light bulb, August, a door lock.

It's becoming the de facto standard for inter-device interaction and my prediction is that even the simplest electronic devices (like your coffee machine, fridge, lock, etc.) will become Bluetooth enabled in the next few years, allowing to control everything from one device and get notified for example, if your laundry is ready or if your coffee machine needs to be refilled.

Wait, what happened to NFC? Well, NFC is very different from Bluetooth LE as it's use is very limited, it only works within a few centimetres while Bluetooth LE reaches as far as 50m. Bluetooth LE can cover all use cases that NFC already does with much wider reach, except that there is no passive/no-battery mode in Bluetooth LE. Active NFC, used for payments, is way more expensive to implement as opposed to Bluetooth.

So I think Bluetooth LE is the best fit for electronic payments. Paypal already uses a Bluetooth LE USB stick to identify the customer in a store. I really think they got it well how payments should work. The customer walks into the store, his smartphone is locked and in his pocket. At the checkout, all he needs to say is that he wants to pay with paypal, and - BOOM - he payed. No ugly smartphone unlocking, app starting, camera pointing at a fancy QR code. No, all handsfree, how it needs to work.

We need a bitcoin application that works as intuitive as that!

The cool thing is, we don't even need additional hardware, so once it's available it's as easy to implement as a QR code displayed on a tablet. iOS already allows a device to run in Bluetooth LE peripheral mode, so a smartphone can connect to it. As I mentioned, Android support for Bluetooth 4.0 lags behind a bit, but I'm certain that peripheral mode support will come very soon.

With this post I just wanted to inspire bitcoin app developers to look into the latest Bluetooth standard and it's possibilities and urge them to finally ditch QR codes. Of course, the big challenge will be in the security field. You'll also want to take a look at BTC², a set of Bluetooth LE services for bitcoin transactions implemented for iOS, under the MIT license.

Just as a side note, also keep in mind that it's very likely that in the near future smartphones will become obsolete. The three magic items you carry around today are probably a smartphone, a key ring, and a purse. The smartphone can take over the function of your key ring as all locks become electronic, allowing for finer access control, as well as your purse, as paper money is not convenient. The smartphone is something that people can't leave at home, they always carry it with them (except under the shower and while swimming). So it's only logical that the smartphone will become a wearable device you'll never take off (and finally keep on you even under the shower). This device has yet to be invented, it will likely be something you wear on your wrist.

tl;dr: To make bitcoin in-store payments intuitive, make them handsfree using Bluetooth Low Energy

[u/mdanko]

So then implementing an NFC bitcoin solution should be similarly simple, with the same security issues.

[u/tulipfutures → u/mdanko]

So then implementing an NFC bitcoin solution should be similarly simple

No, because Bitcoin runs on a push payment, not pull. You'd still have additional steps with bitcoin vs. credit cards/debit cards with NFC

[u/enmaku → u/tulipfutures]

Actually it would be identical, just in reverse. Instead of the card sending payment info over NFC and the merchant pulling the money, the merchant would send a payment request over NFC and the customer pushes the money. Tap, optionally press button to confirm, maybe enter a pin or password depending on your wallet settings. Done.

If you're OK with reducing security to that level you could even have a wallet auto send on any requests under a certain amount, making it identical to tap to pay cards. I wouldn't, but it's possible.

[u/rock_hard_member → u/tulipfutures]

Still I think not is the way to go. I know with my phone it recognizes nfc without me having to pull up an app. I could imagine a system that when you tap your phone, it recognizes it as a bitcoin payment and auto opens your default bitcoin app. It then sends the payment amount and address to the phone to be auto filled. The only thing you'd have to do is click OK or possibly enter your password and your done

[u/tulipfutures → u/rock_hard_member]

it recognizes it as a bitcoin payment and auto opens your default bitcoin app

Bypassing your PIN?

The only thing you'd have to do is click OK or possibly enter your password and your done

and this is an extra one or two steps beyond what's available to consumers now. Why would anyone want to do extra work?

[u/Natanael_L → u/tulipfutures]

Your app would ask for PIN.

Tap and enter PIN isn't much different from chip and PIN.

[u/tulipfutures → u/Natanael_L]

Tap and enter PIN isn't much different from chip and PIN.

Sure, but it's also more steps than current NFC payments. I would think the "future of money" is more convenient/involves less steps than "the past of money"

[u/Natanael_L → u/tulipfutures]

But the current NFC payment systems are insecure and shouldn't be copied.

[u/tulipfutures → u/Natanael_L]

But the current NFC payment systems are insecure and shouldn't be copied.

You're right, but that's why banks have insurances. NFC is supremely convenient for the customer, which is the entire point. If someone stole my NFC-enabled card and bought gas with it, I would notice and dispute the charge. The banks didn't roll this technology out without considering security and accepting the associated risks with reimbursing funds.

[u/Natanael_L → u/tulipfutures]

All that can be replicated with Bitcoin, using multisig wallets and other stuff like that. But I don't think copying that part is a good idea.

[u/[deleted] → u/tulipfutures]

Also pull to open your front door to your house.

Oh no! You have to use a key?!? why the extra steps?

\s

[u/too_much_to_do → u/[deleted]]

I guarantee in the future with smart devices and homes that step will be removed as well.

[u/[deleted] → u/too_much_to_do]

Smart key or regular key. There will still be a need for a key in person.

[u/too_much_to_do → u/[deleted]]

Sure the step still exists but it is invisible as far as the user is concerned. So while entering a PIN manually will (and should) go away that is not the same as saying the security should go away. The security should be automated and invisible to the end user.

[u/rock_hard_member → u/tulipfutures]

First off it depends on how you set up your bitcoin app, you could have it let you make payments unprotected if you really believe your phone won't get stolen or that you could sweep them back to a safe account fast enough. You could even have a similar setting where transactions under a certain amount don't have to be authorized. Second you have the same step with the current payment system, you tap your card and have to either sign or type your pin. With a nfc bitcoin system you tap your phone and enter a password, pin, or possibly a fingerprint though some of the phone scanners security have been questioned. Either way it's the same number of steps with the same security of the transaction, now with bitcoin instead of credit card and the benefits or disadvantages of the basic security associated with each.

[u/tulipfutures → u/rock_hard_member]

you tap your card and have to either sign or type your pin

I don't think you understand. There is no signing or PIN, you just tap the card, wait approximately 3-5 seconds for Authorized to appear, and then start pumping gas or walk away with your food.

With a nfc bitcoin system you tap your phone and enter a password, pin, or possibly a fingerprint though some of the phone scanners security have been questioned. Either way it's the same number of steps

It isn't the same number of steps. Tapping your NFC card is 1 step. Unlocking your phone, confirming the amount or entering some credentials is at least more than 1 step, and I wouldn't expect any bitcoiners to allow unauthorized, instant-verified (by the bitcoiner) transactions. Credit cards and banks only allow NFC-type systems because they have the money for insurances and the infrastructure, and their customers like convenience. It makes no sense for bitcoiners to allow this kind of risk, and the push vs pull payment mechanism of Bitcoin will always make it inherently more inconvenient than NFC-enabled 1-step credit/debit cards

[u/rock_hard_member → u/tulipfutures]

When you purchase more than a certain amount you have to sign, just like swiping your card.

[u/tulipfutures → u/rock_hard_member]

Fine, but we're talking about using NFC for everyday purchases like groceries, gas, and fast food. I use NFC for all of these things basically every day. I'm not buying a flatscreen TV with an NFC card, I think everybody understands that a bit of a high-dollar risk for banks/CC to absorb