In the light of recent developments related to the tightening of the regulation of crypto exchanges and the uncertain situation in the crypto network, direct exchanges (P2P) are gaining popularity, as users are afraid to transfer a сoins through classic centralized exchanges – where they are entirely dependent on the policy which is accepted by the administrators of the exchange.
P2P is a decentralized exchange of crypto-currency directly between users. All logistics is carried out by special software, therefore, third parties are not required.
Ordinary exchangers are companies that act as intermediaries between users, receiving rewards for this.
Both approaches have advantages and disadvantages. In general, P2P develops the philosophy of decentralization, which guided the creators of bitcoins.
How was P2P created?
P2P has become a solution to the problems that conventional exchangers have.
By and large, exchangers have always served as a gateway to the world of crypto-currency. A small number of shops accepting the crypt required the creation of an intermediate link between the world economy and the crypto currency.
The problem is that unlike bitcoin, the exchangers are managed by people. They monitor all user actions, serve as arbitrators in disputes and collect remuneration for their services. To get rid of these shortcomings, P2P exchangers were created.
How are transactions made?
The software automatically connects users with the same terms and conditions for the purchase and sale of currencies.
Let’s start with the description of the work of ordinary exchangers.
To sell coin, you need to specify their number and price, and create an order.
To buy coin, you need either find an order with the appropriate conditions, or create your own order to buy. The exchanger finds and processes matching orders.
Transactions can take a long time: from 5 minutes to several hours. Transfers of financial currencies, especially international ones, can take even longer. The exchanger serves as a trustee and completes transactions before transactions could occur.
To get rid of the need for a third person, LocalCoinSwap finds people who have placed matching orders. LocalCoinSwap connect the seller and the buyer, which allows them to smoothly make a deal.
Of course, arbitrators may be required, but under standard conditions, third parties are not involved and everything happens in a decentralized manner.
LocalCoinSwap (LCS) is a decentralised marketplace which allows buyers and sellers to trade directly in any cryptocurrency using any method of payment. LocalCoinSwap provides a safe, uncomplicated and fast P2P trading platform, allowing users to freely exchange without unnecessary verification requirements or waiting times. The platform utilises a secure escrow system that solves the inherent trust issues of online P2P trading.
For a small price LocalCoinSwap provides protection from government interference and security.
LocalCoinSwap only charges commission to the market maker of the transaction (the trader advertising their services on the platform). The price advertised is the price paid, without withdrawal or deposit fees, and no other hidden charges.
For sellers who regularly engage in high volume trades, a special pro-trader status will be awarded, conferring lower trading fees and an official ‘trusted’ banner on their profile.
Fees for trading will be set based on comparable exchanges, with the aim to match or beat the fees offered by any competitors (currently this is 1%).
The absence of a weak link, on which the efficiency of exchange depends, is the main advantage of decentralization. Of course, a single center ensures the speed of transfers, but any vulnerability compromises the entire system.
Getting rid of the weakest link LocalCoinSwap has received the next benefits:
- Resistance to state control. The staff of ordinary exchangers is subject to the pressure of the state, which seeks to introduce its beneficial rules for crypto currency. For example, the intervention of the People’s Bank of China led to the freezing of transfers of the two largest Chinese exchangers for a month. No one would like this to happen to his means.
- On the other hand, P2P is practically invulnerable to government intervention, since there is no central organization that the state could regulate. This gives the advantage of LocalCoinSwap.
- Cheap operation. In ordinary exchangers, people who need to pay work. P2P is a program, so the commission is much smaller.
- Privacy. In recent years, governments have promoted laws against money laundering (AML) and user identification requirements (KYC). This caused the exchangers to collect personal information: name, place of residence, passport data, etc.
- Obviously, the government does not have control over LocalCoinSwap, so users can not worry about their data.
- Security. Exchangers do not have currency accounts, instead they connect users directly. If you do not transfer money to a third party, they can not be stolen or lost in the process. A full-time dedicated security team has been enlisted to safeguard all vulnerable information at all times. 95% of cryptocurrency deposits will be stored in offline wallets to minimise potential loss due to hacking. Regular security audits by penetration specialists have been scheduled to ensure the security system is fully up to date. In addition, third party monitoring systems have been implemented for all servers with automatic shutdown mechanisms in cases of detected intrusion.
How to prevent fraud?
Usually use arbitrators with a public reputation, mandatory buffer fees for the duration of the transaction and personal meetings.
Translation of the coins can not be canceled, and translation of the fiat currency is possible. Scammers get coins, and then cancel the transfer, for example dollars. To prevent this, use mandatory contributions in coins, which participants in the transaction must make before they start negotiating. If everything goes well, the fees are returned.
Disputes are decided by arbitrators. They use contributions to compensate for the actions of the fraudster. The reputation system does not allow arbitrators to abuse their authority.
The LocalCoinSwap escrow system acts as an intermediary between buyers and sellers to create a trustless solution to the inherit trust issue which hampers P2P transactions. LocalCoinSwap will implement a multi-signature transaction option for users in currencies where this is possible. This will allow users to exchange with zero platform risk.
When a new trade is initiated between traders, LocalCoinSwap takes possession of the cryptocurrency portion of the transaction, while the fiat currency payment is made directly from the buyer to the seller. Once the payment has been made, and the seller can verify the fiat currency transaction has been received, the cryptocurrency is released to the buyer.
To prevent users funds from being locked up during volatile market periods, time limits for each step of the contract process can be specified by the buyer or seller and are agreed to in advance.
In addition to the platform we would like to note one more positive thing. This is Cryptoshares. At first let’s see what is it, and why I’m talking about it like a positive stuff.
LocalCoinSwap is holding a crowdsale event of LCS Cryptoshares. Cryptoshares are a digital asset which will be used to facilitate distribution of all profits made by the LocalCoinSwap platform, in addition to all profits made by new business ventures under the LocalCoinSwap umbrella. Cryptoshare holders will additionally receive airdrops of new ICO tokens listed on the LocalCoinSwap platform.
LCS Cryptoshares are not like traditional ICO tokens. Instead of a vague promise of possible future returns or idealistic visions which may never eventuate into product, Cryptoshares entitle the holders to guaranteed rights to 100% of the total profits from the Localcoinswap exchange through cryptocurrency dividends.
- Invest. Purchase LocalCoinSwap Cryptoshares (LCS) through the Initial Coin Offering
- Profit. The LocalCoinSwap exchange makes profits from the escrow fees in all the currencies traded on the platform. Cryptocurrency profits are paid to shareholders in the same cryptocurrencies in which they are made, allowing the investor to receive a regular stream of portfolio income. By holding a single Cryptoshare asset, the investor is entitled to a wide variety of cryptocurrency profits across the entire spectrum of the digital economy.
- Distribution of dividends. At the end of the end of the quarter, 100% of the profit is distributed to Cryptoshare holders
- Equal weighting. If an investor holds 1% of LCS – they receive 1% of the profit
- Airdrops. When new ICO’s are listed on the platform, all LocalCoinSwap Cryptoshare holders receive a small amount of that token in return for each Cryptoshare they own
- Income. Receive a continuous stream of income in multiple currencies, just from holding a single asset
In addition, LCS Cryptoshares entitle the holder to voting rights in the platform’s decisionmaking process, such as the listing of new tokens on the exchange, the direction of new business ventures and design considerations or functionalities for the platform. Cryptoshares in LocalCoinSwap are more than just a stream of dividends, by investing you become an integral part of the future of the exchange itself.
PRICE PER LCS
0.0004 Ethereum (ETH) (1 ETH = 2500 LCS)
LCS MAXIMUM TOTAL SUPPLY
AVAILABLE THROUGH PRE-ICO/PRESALE/ICO
All developer tokens for 1 year
Ethereum (ETH), Bitcoin (BTC), Litecoin (LTC), Bitcoin Cash (BCH), Dash (DASH), Ethereum Classic (ETC), US Dollar (USD), Euro (EUR), British Pound (GBP), Australian Dollar (AUD), New Zealand Dollar (NZD), Canadian Dollar (CAD) & more
500,000 US Dollar (USD)
ABSOLUTE HARD CAP
20,000,000 US Dollar (USD) (remaining tokens destroyed)
Open source (public GitHub)
White Paper: LocalCoinSwap_whitepaper_v1.0.pdf