There is more of a chicken and egg situation with these devices than with the technological angle that other hardware wallet designers have come up with, but I am reminded of what French supermarket Monoprix implied when they announced web-only bitcoin support later this year (which was that the technology for in-person bitcoin payments wasn't as usable as the online solutions). Sigsafe is a candidate to bridge that gap, as it seems that all a retailer needs is a PoS reader and till that supports the device, and a software upgrade both at the outlet level and for their finance department.
I think the "chicken and egg" problem will apply most acutely to integration at brick-and-mortar PoS terminals.
But bitcoin has taught me the value of a network. Things like Gavin's Payment Protocol (BIP70) and
Lawrence Nahum's extension for instant confirmations via green-addresses are important in reinforcing this network effect. If a spec is simple, clear, flexible and robust, and if community members feel they've had some input, then people will just begin to adopt it. It's the easiest way to move forward.
For this reason, I'm trying to think of Sigsafe as just one realization of a larger class of devices that could share a common communication interface and function, as well as be compatible with equipment already widely deployed.
From my research, I've learned that Android phones with NFC, contactless PoS terminals, and the majority of new RFID readers adhere to ISO/IEC 14443. This means they share a common radio frequency, power and signal interface (14443-2), initialization and anti-collision schemes (14443-3) and a common transmission protocol (14443-4). So bitcoin signing tags and smartcards that adhere up to ISO 14443-4 will automatically be
hardware compatible.
Communication with both contact and contactless smartcards is consistent
up to the application layer using the application protocol data unit (APDU) specification from ISO/IEC 7816. What this means is that bitcoin signing devices with firmware the supports APDU commands will be largely
software compatible up to the application layer.
I think if we can achieve this and make everything clear and easy, first we will see bitcoin wallets begin to interface with devices like sigsafe. And then if another company can build a different version of a bitcoin signing tag
knowing how to make their device compatible with existing wallets, then they will be incentivized to do so, especially if the profit margins are good. Next thing you know and perhaps a lot of people will have these devices from 3 different manufacturers that all share a compatible interface.
Then an innovator will hack an Android phone or tablet to accept "tap-and-pay" NFC payments at his store. This will begin to catch on--but people will complain about security: "I'm not touching my bitcoin tag to that hack!" When investors with deeper pockets begin to notice the opportunity, they'll be pleasantly surprised to learn that it just requires some software updates and an entire line-up of PoS terminal can suddenly accept bitcoin. In fact, the existing spec already allows for two-way authentication to quell the fears of stollen coins.
Or at least that's one way it could happen
Perhaps people will decided that they don't like the idea, or perhaps some big company will lock it down in a proprietary and closed format. Time will tell. This project started out as an excuse for me to learn about the protocol, so whatever happens I've already learned a lot.