What is this?

HISWAI shows you what’s connected to topics that interest you, and where to find more. HISWAI members can curate information with dashboards to gain insights, proper context and stay up to date on the latest relevant information. Sharing these discoveries with others is easy too!


Want to know more?

Apple blocks giving away NFTs with Coinbase Wallet

< Go Back

Date: 2022-12-01 19:59:23

Tags for this article:

Article Text:

Coinbase has killed a non-fungible token (NFT) function on its mobile wallet because Apple demanded a cut, even though the cryptocurrency platform wasn't getting a cut either.

Driving the news: The company nixed a "Send NFT" function in its Coinbase Wallet, because it costs money (ether) to send an NFT.

  • Meanwhile, the iPhone maker — which has come under fire for the stiff cut it charges larger app makers — has claimed that "gas" fees required to send NFTs should be paid within the app, according to Coinbase.

Why it matters: Many large firms (and not a few informed users) in Silicon Valley are mad about the 30% Apple takes from any transaction that takes place on a large developer's iOS app.

  • Spotify and Epic Games have been fighting it a long time, and Elon Musk has joined that fight now that he's running Twitter.
  • Even the French are upset with the Cupertino-based giant.

What they're saying: "Apple’s claim is that the gas fees required to send NFTs need to be paid through their In-App Purchase system, so that they can collect 30% of the gas fee," Coinbase Wallet posted in a Twitter thread.

Context: Apple controls the most lucrative app marketplace in the world. Coinbase has, at times, been one of its most popular apps.

Zoom in: To send an NFT (to do literally anything on a blockchain) costs the sender a little money. Every time a user takes any action that goes into Ethereum or related blockchains, the user needs to pay the many computers that are going to run that computation.

  • This is called "gas" but is actually paid in the coin of the blockchain realm (when it's on Ethereum, gas is paid in ether).
  • Still, Coinbase gets none of this when a Wallet user hits "send NFT." It goes entirely to the blockchains' validators. It's just how Ethereum works.
  • Nevertheless, money is changing hands through one of its apps, so Apple believes it deserves a cut.

Catch up fast: In October, updates to the Apple app store guidelines gave a firm "no" to selling NFTs without cutting Apple in.

Thus far, Apple has not objected to functionality that only concerns using tokens. Digital goods seem to be the key issue.

  • To some, Apple appears to be trying to protect its lucrative market for digital goods, particularly in games. NFTs are feared to be an end-run around in-app purchase functionality for those goods.
  • "They are willing to hurt customers and the industry just to enforce that line," a source familiar with the matter told Axios.

Coinbase has appealed Apple's decision, saying that it's not technically feasible to implement in-app purchases for sending NFTs within Coinbase Wallet, given the nature of blockchains.

  • But the appeal was denied, and has since been escalated to an appeal of the guidelines themselves.

Flashback: For a long time, Apple has had a hard time wrapping its head around blockchains and NFTs.

  • Back in 2018, it booted the Coinbase Wallet when it tried to let users look at their NFTs for a video game that was under development at the time.
  • In 2015, it removed a game that earned bitcoin.
  • Coinbase itself had a tough time with the iOS store early on.

Quick take: If we had to bet, we'd say that Apple does not even have an Ethereum address to send their cut to, even if Coinbase found a way to pay them part of the gas fees.

Apple and Coinbase did not immediately reply to Axios' request for comment.

Original Source: https://www.axios.com/2022/12/01/coinbase-nft-wallet-apple-fees