Free Bitcoin offered in Zaps trial — but what exactly are Zaps?

A Bitcoin (BTC) supporter from Canada has “Zapped” 600 individuals, providing each with 300 satoshis ($0.09, or 0.000003 BTC) as part of a Bitcoin-themed social media initiative.

So far, marketing professional Michael Degroot has distributed over $50 in Bitcoin to individuals worldwide. He has also been Zapped back more than 40 times, accumulating over $6.

Conducting an experiment on @orangepillapp, I will be zapping and connecting with everyone who has their lightning wallet linked. Approximately 700 people; if you’re not on there yet, here’s my referral code. https://t.co/ADO92uEDqr I will update this thread as I zap people #Bitcoin

— Michael Degroot (@_mikedegroot) July 31, 2023

What are Zaps, and how can money be sent globally without intermediaries?

Degroot recently registered for the Orange Pill App, a social media platform that links Bitcoin enthusiasts globally. The app functions similarly to Tinder or Meetups, aiming to connect Bitcoin users in real life.

The app has recently incorporated Zaps, or Bitcoin tips, and according to founder Matteo Pellegrini, 20% of users have included Zaps in their profiles.

Zaps utilize the layer-2 Lightning Network, which operates on top of Bitcoin. Typically, Zaps consist of small or minute amounts of Bitcoin, quantified in satoshis, that are transferred peer-to-peer.

To perform a Zap, users have two options: set up a noncustodial Lightning wallet using a Lightning node or establish a custodial Lightning wallet. When users choose a custodial option, a third party like Wallet of Satoshi, Blink, or CoinCorner manages the Bitcoin, handling routing, Lightning channels, and liquidity.

Users can then generate a Lightning address, referred to as an LNURL, to receive Zaps. Consider the LNURL as an email address, but for monetary transactions. By adding this address to profiles on platforms such as Orange Pill App, Geyser Fund, or Nostr, users can receive Bitcoin from individuals worldwide, instantly and at minimal cost.

Bitcoin tipping, or Zapping, is primarily mobile-focused.

Importantly, there is rarely a middleman involved in Zapping, making it effective for micropayments, such as Degroot’s 300 sats transaction. Traditional money transfer services like PayPal, Western Union, or wire transfers impose fees to facilitate global transactions, which are not suitable for micropayments due to their high costs.

Zapping eliminates the necessity for a middleman, thereby removing a potential profit opportunity. Pellegrini stated: “It doesn’t cost us anything when users Zap each other, and we don’t, nor should we, profit from it.”

Brian Armstrong, the CEO of Coinbase — the largest cryptocurrency exchange in the United States — recently mistook a Lightning address, or Zap address, for an email address. It is evident that Zaps have not yet gained significant traction in mainstream crypto discussions.

Zapathon

Returning to Degroot’s Zapathon, the Canadian “messaged and zapped every single person on the Orange Pill App who has a Lightning wallet linked to their profile,” he shared with Cointelegraph.

“I want to contribute more to the community, and I thought this was a way to do so while expanding my network of Bitcoiners. A method to discover more signal.”

While Degroot broadened his network, gaining hundreds of X (formerly known as Twitter) followers, this generous gesture also highlighted the effectiveness of the Lightning Network’s money transfer system. Degroot Zapped 300 sats (less than $0.10) to an individual residing 16,000 kilometers (9,940 miles) away in South Africa, stating: “It settled in a second, and there was no fee for it.”

“I previously owned a business, and if someone paid us with a credit card before a weekend, it could take up to five days for those funds to reach our bank account, costing around 2.5%.”

Degroot also Zapped me (please note that this was not a bribe to write this article!) It incurred no cost despite our separation by the Atlantic Ocean.

Zapping on Nostr

While Orange Pill App, Geyser Fund, and Stacker News serve as Zap platforms, the tipping feature has gained popularity on Nostr, which stands for “Notes and Other Stuff Transmitted by Relays.” Currently, Nostr is a decentralized alternative to centralized social media platforms like X or Reddit.

Zaps sent on Nostr over the past six months. Source: Nostr.Band

Nostr is a protocol that operates through integration with clients such as Damus (for iPhone) or Snort (for desktop). Nostr has recently reached 4 million users, with hundreds of thousands of dollars worth of Bitcoin being zapped globally. Interestingly, the “like” button exists on Nostr platforms, but Zaps are sometimes preferred over likes.

Why are individuals distributing free money online?

Zapping is a behavior among Bitcoin enthusiasts that may initially seem illogical. Why distribute Bitcoin to strangers online, knowing it is a limited resource? There are only 21 million BTC, or 21 quadrillion sats, and it is highly improbable that more will be mined.

Jeff Booth, founder of Ego Death Capital, remarked to Cointelegraph: “For individuals in Bitcoin and on Nostr, that economy is emerging, and it’s still in its early stages.”

“For those not in that realm, they wouldn’t comprehend what we’re discussing. If you’re evaluating from the existing system, you don’t understand what we’re referring to.”

I inquired with Nostr users about their motivations for sending sats. The replies were light-hearted, enjoyable, and heartfelt. BitcoinSandy, a Nostr user, shared that “it feels really good to send instant value to someone who shares similar values regarding freedom.”

Manlikeweks noted that Nostr’s borderless and censorship-resistant features are remarkable, especially “as a person based in Tanzania receiving funding globally without any limitations.”

Zapping also aligns with the value-for-value trend, or creator compensation. Digital creators can directly monetize their content without needing a middleman.

BitcoinBarry explained how this operates in practice: “I often strive to provide answers where I can and am rewarded for offering better than suboptimal responses.” In other words, if you share valuable content on Nostr, you may receive a generous Zap — similar to tipping a waiter for excellent service.

Nostr user JoeLibertarian articulated it clearly: “Sats speak louder than likes.” You can express appreciation for a post on Nostr by liking it, or you can send sats to genuinely convey satisfaction and gratitude.

Nostr-ings attached?

Nostr is not without its challenges. Apple recently removed Damus from the App Store due to the Bitcoin tipping feature. Apple stated that Zaps violate payment policies: “If they [users] are connected to or associated with receiving digital content, they must use in-app purchases in accordance with guideline 3.1.1.”

Nevertheless, Nostr is a protocol, not a centralized service. Similar clients to Damus have since emerged on the Apple App Store, such as Plebstr.

Regarding the Orange Pill App, Pellegrini informed Cointelegraph that there is no risk of being deplatformed by Apple. Why? Pellegrini explained, “We provided Tim Cook [Apple’s CEO] with a complimentary Orange Pill App membership!”

“Joking aside, there’s no feed on the app, so the zapping occurs via profiles that are not categorized as content, unlike notes/tweets.”

Apple may persist in its efforts against Nostr platforms where content can be easily monetized, but as popular Nostr creator Walker highlights, Nostr is “a freedom-loving hydra.” If one Nostr platform is removed, others will emerge:

Apple yields to the CCP and removes @damusapp from the App Store in China after just one day…
They will soon realize #nostr is a freedom-loving hydra…
Cut off one head and two will grow in its place.
You cannot eliminate it; opposing it only strengthens it. pic.twitter.com/D3UTFtx2mR

— Walker⚡️ (@WalkerAmerica) February 2, 2023

Meanwhile, Degroot’s mission continues. He aims to Zap every user on the Orange Pill App, encouraged by the positive responses he has received from fellow users:

“My favorite response was ‘Thank you for sending me those sats. I have never been zapped before — you made my day!’”

He concluded the experiment on Aug. 7, urging the Zap-curious to “DO IT.”

I sent approximately 600 zaps totaling 180,000 sats and was zapped back around 40 times, with many individuals expressing their intention to pay it forward. One person returned 50 times what I sent them, and another 80 times to support the cause. If you have the opportunity to zap someone for the first time, DO IT⚡️

— Michael Degroot (@_mikedegroot) August 7, 2023

Ultimately, Degroot frequently Zapped profiles that received their first-ever sats. Pellegrini succinctly encapsulated it: “After all, who doesn’t appreciate some sweet sweet sats?”