But they are saying one of the two in the transaction needs internet, if internet goes down not sure they can still pay one another.

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you totally can still pay, just more trust involved which is probably fine for me of these use cases

Good to know.

Can Bitchat also send messages if both parties are out of Bluetooth range but connected to internet?

Bitchat Github states:

"Store & Forward: Messages cached for offline peers and delivered when they reconnect"

What does that mean...."offline" & "reconnect" in tradional internet connectivity speak or Bluetooth offline & reconnect?

I also see that Location Services must be on for Android app to even let you past the first screen, pretty sure privacy people are not going to like this.

When the app first came out it was enough to just give app Location permission, now latest version wants phone Location enabled.

I think that was a vibed artifact. But yes the idea is to make this feature where a bluetooth connected user could detect a new peer on the mesh and forward them messages they might have missed. I don’t think this is a reliable feature yet though.

on location services: gps isnt actually used in the app, but the bluetooth module needs it which is why you have to give that permission. Might be possible to not require it, but that’s a task for a #goose

it does this already. messages are cached and forwarded on connect