Bread Wallet
Bread Wallet (BRD): A Pioneering, User-Owned Mobile Crypto
Bread Wallet, subsequently rebranded as BRD, left an indelible mark on cryptocurrency history as one of crypto’s pioneering and most accessible mobile wallets. With a straightforward mission to demystify the complicated world of digital currencies for users, Bread Wallet promoted direct network connection and user control of private keys. Its path from a basic Bitcoin wallet to an extension to multiple currencies, and ultimately to acquisition, is one of compelling innovation and development in today’s high-stakes crypto environment.
The Origins of Bread Wallet: A Simple Journey
In the early days of Bitcoin, in about 2014, it was not an easy experience for new users to deal with the cryptocurrency. The majority of wallets were desktop ones, and in some instances, users even needed to download the full blockchain, while interfaces were not always user-friendly. This is where Aaron Voisine and Adam Traidman, co-founders, dreamed of a different type of wallet- one that was mobile-first, extremely user-friendly, and never compromised on security and user control. The very name “Bread” was chosen to suggest simplicity and ease of use, like something as fundamental as bread.
The fundamental concept of Bread Wallet was to create a “real standalone Bitcoin client” for mobile systems, which would be launched first on iOS and subsequently on Android. What did “standalone” refer to? In that, it meant that the wallet was directly communicating with the Bitcoin network and not using the company’s servers for fundamental wallet functions such as sending or accepting transactions. This was an important contrast as it minimized the potential for a single point of failure or for one of the company’s servers to be hacked, which could lead to user funds or access being compromised.
This ideal struck a chord among many within the Bitcoin community, who felt concerned about custodial providers that were storing users’ private keys. Bread Wallet was created to allow users control of their digital property, personifying the crypto mantra: “Not your keys, not your coins.” The idea was to put the center of attention on enabling users to become their own bank, directly from their mobile phones.
Bread Wallet made users in charge: SPV and Private Keys
In order to gain speedy operation on a mobile device without having to download the full Bitcoin blockchain (which was getting quite large anyhow), Bread Wallet used something known as Simplified Payment Verification (SPV). Consider this: rather than reading an entire huge library to locate data about one book, SPV mode enables the wallet to quickly confirm transactions by downloading only headers of blocks, which are much, much smaller. It samples random nodes on the Bitcoin network to obtain necessary data, ensuring that transactions were included in a block without requiring all of the block’s data.
This direct-to-network design using SPV was central to Bread Wallet’s design. It meant that users’ private keys – secret codes that allow them to access their Bitcoin – were created and maintained directly on users’ individual devices, never coming near Bread Wallet’s servers. The company never accessed user funds, which was an important security benefit and an underlying tenet of its ethos. If your phone was lost or broken, you could regain your wallet and money using a 12-word recovery phrase (also referred to as a seed phrase) that you were encouraged to write down and secure during setup.
A key feature of this was an emphasis on user control and non-custodial storage. Although it gave more responsibility to the user to protect their recovery phrase, it also provided more financial independence than web wallets or exchanges that store private keys on behalf of users.
Securing Mobile Crypto: Bread Wallet’s Security Strategy
Since mobile devices were prone to threats ranging from malware to theft, security remained of most importance to Bread Wallet. The team took several measures to protect user data and funds. They used AES hardware encryption to encrypt wallet data on the device, making it much more difficult for anyone to get to sensitive data even if physical possession of the phone was obtained.
App sandboxing, an included standard feature of contemporary mobile operating systems such as iOS and Android, provided another critical element. Sandboxing separates apps from one another and from the operating system, restricting damage an attacking application might cause. The platform-specific features of secure data storage, such as that provided by the iOS Keychain, were also used by Bread Wallet for safeguarding sensitive information, like the store’s encrypted private keys. Code signatures ensured that the code executed by the user’s device was actually that of Bread Wallet and hadn’t been compromised.
In spite of these strong safeguards, Bread Wallet, like any application wallet that is internet-connected, was in reality a “hot wallet.” That is to say, while it was fine for handling routine spending quantities of cryptocurrency, just as you might utilize an actual money wallet, it was not ideal for larger sums or long-term holdings. In these instances, users were encouraged to utilize more secure “cold storage” options, such as hardware wallets, which store private keys offline altogether.
From Breadwallet to BRD: Adapting to a Multi-Asset Future
As the cryptocurrency market grew beyond bitcoin to hundreds of other altcoins and tokens, Bread Wallet’s vision also grew. In 2017, it officially rebranded itself as “BRD” from “Breadwallet.” Such a change was not merely superficial: it was an indication of a strategic direction towards becoming more of a multi-currency platform and a general financial services center. The upgraded name was also cleaner and not Bitcoin-centered, indicating its desire to support more digital currencies.
Subsequent to rebranding, BRD started to include support for other major cryptocurrencies like ethereum and other ERC-20 tokens. This provided users with more diversity in terms of the number of digital currencies that could be managed in one familiar environment. Fundamental principles of user control and direct network interaction remained, but were now used for an expanding list of supported coins and tokens.
The move was a natural one, as consumers increasingly looked for easy ways to store and trade various currencies without needing to manage multiple wallet apps. BRD positioned itself as that one-stop shop, upholding its principles of simplicity and security while meeting expanding demands for multiple asset support.
The BRD Token (BRD): Energizing Loyalty and Platform Expansion
In line with its growth, BRD also released its own utility token, which is also named BRD. The BRD token, an ERC-20 token on the Ethereum platform, was created to provide an improved user experience and build a more active community of users within the platform. How was it going to be used? There were plans for it to be used to redeem multiple benefits and rewards within the BRD application.
BRD token holders might receive rewards in the form of discounts on products and services provided by the app, like cheaper fees on buying cryptocurrency. There were also ideas for premium content, VIP treatment of new features, and token-holding rewards. The goal was having an ecosystem that was self-sustaining where users were encouraged to hold and utilize BRD tokens, thus creating high engagement and contributing to users feeling that they belong to the BRD community.
Launching a native token was something many crypto initiatives were doing at that time. For BRD, it was a chance to raise capital to continue development, strengthen the platform, and get closer in interests to users. The more valuable that BRD platform became, it was reasoned, the more utility and value potential existed for the BRD token.
Constructing a financial center: BRD’s ecosystem expansion
With its support for multiple currencies and token of its own, BRD continued to develop its platform, pushing to be more than just a basic crypto-wallet application. Integrating functionality that enabled users to utilize their digital currencies to do more from within the application was the emphasis of development for the team. One of these features was enabling users to purchase cryptocurrencies like Bitcoin and Ethereum using conventional methods of payment, like bank transfer or credit/debit card, by partnering up with third-party service providers.
This functionality greatly reduced the entry cost for novices, as users were able to purchase starter cryptocurrencies without having to create an exchange account first. Although fees were paid to banks or third parties for these transactions, it was an extremely attractive feature for its ease of use. BRD also investigated integrations that enabled trading of cryptocurrencies or interfacing with decentralized financial (DeFi) protocols, although which of these integrations it supported evolved over time.
The target was to establish BRD as an end-to-end mobile-first financial platform for the expanding digital economy. With more than just sending and receiving, BRD aimed to serve the developing needs of crypto users, ranging from novices who needed an accessible means to purchase their first Bitcoin to more sophisticated users looking to engage in multiple crypto-financial activities.
The Coinbase Acquisition: A New Home for BRD’s Vision
In an important announcement that opened up an entirely new chapter for the project, BRD revealed in November 2021 that it was being acquired by Coinbase, one of the leading cryptocurrency exchanges globally. The announcement was received with mixed emotions within the BRD community. On one side, it was viewed as an endorsement of BRD’s user base, technology, and pioneering effort in the non-custodial wallet market. On the other side, it meant that BRD as an independent project was coming to an end.
A part of the acquisition, Coinbase’s own non-custodial wallet product, Coinbase Wallet, absorbed the BRD team. The aim, as expressed, was to aid in “web3 adoption” and extend to more users the advantages of self-custody. For current users of the BRD app, Coinbase promised that they would be able to migrate to Coinbase Wallet if they wished to. The BRD app itself ultimately phased out.
The fate of the BRD token was also up for discussion. Although specifics were fleshed out, what was generally known was that its usefulness within the native BRD ecosystem would end upon the discontinuation of the app, although token holders could be granted consideration or an airdrop within Coinbase’s universe in certain scenarios. The acquisition essentially meant that BRD’s agenda of fostering self-custody would be continued, but as part of a much larger entity.
Bread Wallet/BRD’s Enduring Legacy in Crypto Accessibility
In spite of its eventual acquisition, Bread Wallet/BRD’s legacy in the crypto community is undeniable. It was one of the pioneers to make Bitcoin, and subsequently other cryptos, accessible and workable for an everyday mobile user base. Its unflinching dedication to user control of private keys and direct-to-networkSPV setup established an elite model for non-custodial mobile wallets to follow.
BRD showed that it’s possible for an otherwise secure crypto wallet to be extremely user-friendly, removing barriers that stood in the way of many who might otherwise consider using it. BRD helped lead the charge in educating users about self-custody and gave them the means to genuinely “be their own bank.” Millions of users globally were introduced to cryptocurrency by the ease of use and simplicity of Bread Wallet’s user interface.
The path from niche Bitcoin wallet to multi-asset platform, and ultimately to integration into an environment such as Coinbase, shows the transformative and frequently consolidating character of the crypto sector. Although no longer an independent product, its fundamental principles and pioneering ethos of its creators left an indelible stamp on mobile crypto wallets and perceptions of them.
Bread Wallet, subsequently BRD, started from one fundamental yet potent idea: making cryptocurrency accessible and secure to anyone directly from their mobile device. With an emphasis on user control, direct network connectivity, and an unadorned user experience, it became an adored utility for millions and an important force behind Bitcoin and crypto adoption. Its growth and ultimate acquisition by Coinbase represent the culmination of one story but also highlight the abiding merits of its underlying mission in continuing to strive for an increasingly decentralized and accessible financial future.
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- ↑ https://www.finder.com/breadwallet-review – Bread Wallet Review – Fees, App
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