Bitcoin Challenges Apple, Google's App Ecosystem Dominance

Tech giants apple and google maintain their dominance through effective monopolies of their app ecosystems, controlling what apps users can access on their devices. This power extends to complying with state requests for app removals, as seen with Apple's actions in response to demands from the Chinese Communist Party and the Indian government. This compliance allows these countries to shape the internet according to their censorship policies, highlighting the tech titans' role in facilitating such control.

Bitcoin, however, offers a unique challenge to this system. Proton's CEO Andy Yen has criticized Apple for its reliance on China for manufacturing, noting that this dependence makes Apple vulnerable to China's demands. Proton, which offers privacy-protecting tools independent of Apple and Google, has also moved to accept Bitcoin and provide a wallet for its users. This shift towards Bitcoin represents a hedge against the deal-making system that tech giants engage in with countries, providing an alternative that is not subject to the same level of control.

Another example is the Nostr app Damus, a decentralized social media platform that allows users to control their private keys and choose their clients for accessing content. Nostr, like Bitcoin, operates as a protocol rather than a platform, making it uncensorable by any individual group. The app's implementation of Nostr zaps, which are Bitcoin micro-payments, poses a dual threat to Apple and Google. These micro-payments provide an independent option for payments that do not need to be subject to the onerous developer fees imposed by the app stores, challenging the monopoly and state-platform relationship that drives today's app ecosystems.

Will, the founder of Damus, highlighted the stifling effect of Apple's control on developer innovation. Apple's discretionary app reviews and strict regulations can hinder the development of innovative features. For instance, Damus faced a review where zaps sent within the app had to adhere to specific rules, such as being structured as tips after content. Apple threatened to remove the Damus app if it did not comply with these regulations, demonstrating the extent of Apple's control over the payment system within its ecosystem. Will also noted the lack of direct support for developers in the Apple ecosystem, unlike in the Android world, where developers can receive donations directly from users. This limitation on innovation is a direct result of Apple's control over the payment system, which restricts developers' ability to innovate freely.

Google's Play Store faces similar challenges, though Damus is exploring options beyond the Play Store to release content and foster innovation. Bitcoin's decentralized nature represents a significant shift from the traditional financial order, empowering developer innovation and enabling peer-to-peer payments. As Apple and Google navigate the implications of Bitcoin, it is clear that its ability to disrupt the current app store model poses a significant threat to their control over the ecosystem. The decentralized nature of Bitcoin and its potential to empower developers and users alike make it a formidable challenge to the existing power dynamics in the tech industry.