Both ChangeNOW and LocalCryptos - a noncustodial P2P marketplace via their twitter announced their strategic partnership to help users of the LocalCryptos platform have access to instant crypto swap service.
The integration of changeNOW's instant exchange service to the P2P platform will enable users to swap between Bitcoin ($BTC), Ethereum ($ETH), and Litecoin ($LTC) right in their internal wallet.
Crypto holders need a one-stop solution to their crypto needs. This saves people the time and the hustle they would have to go through to access other services and use products outside what they regularly use. An example is using wallets with no exchange functionality. In such a case, users will need to get their crypto exchanged via another service provider.
LocalCryptos is a non-custodial p2p platform that harnesses the buying and selling of crypto directly between unknown parties and is currently supported in over 100 countries. The company initially was called LocalEthereum as it was solely an Ethereum based P2P exchange platform. As time went on they introduced other cryptocurrencies like Bitcoin and rebranded to LocalCryptos in 2019. In order to facilitate an exchange transaction without holding custody of customer's funds, LocalCryptos uses in-browser cryptography technology to provide noncustodial escrow service for safe and secure transfer of value.
Some Interesting Stats
According to the LocalCryptos website, the platform is being used by over 100,000 people in 100+ countries. At the time of publishing, approximately $168,000 has been traded in just a day which indicates people often use the platform for their daily crypto exchanges. With regards to payments, LocalCryptos supports over 40 payment methods giving users a wide range of options to complete trades, Some of the well-known payment options include Bank Transfers, PayPal, Western Union, MoneyGram, Venmo, gift cards and many more.
How LocalCryptos Escrow Work
The escrow system varies depending on the underlying blockchain. Smart contracts are leveraged on the Ethereum blockchain protocol to serve as an escrow. These are special kinds of electronic contracts that are programmed to execute when certain conditions initially specified are met. A practical example of an instance of a smart contract use case is programming a contract to send a number of tokens depending on the amount of ETH sent to the contract.
In the case of LocalCryptos, smart contracts are used in a different way. The party wanting to sell his/her ETH will have to send it to the smart contract to be locked. The buying party then issue payment to the seller in a preferred currency and when the recipient acknowledges that he/she has received the payment from the buyer, the smart contract takes this as an input and acts accordingly by releasing the ETH to the buyer's wallet.
In the case of a Bitcoin transaction, the escrow mechanism used is the (Pay-to-Witness-Script-Hash) P2WSH transaction. This is an upgraded version of the Pay-to-Script-Hash (P2SH) script that enables the deployment of smart contract transactions on the Bitcoin blockchain.
The Exchange Process
- Log in or sign up for an account which usually doesn't take much longer. There is also an option to sign up with an Ethereum wallet.
- Find a buyer or seller according to your terms
- Open a trade by choosing the amount you want to buy or sell. The involving party will be notified accordingly.
- The final part is the completion of the exchange. The seller deposits in the escrow, the buyer sends money to the seller, and lastly, the underlying crypto is then released.
What's Special About LocalCryptos
Truly noncustodial - There are no intermediaries throughout the transaction process, unlike other systems where a centralized entity controls the flow of assets. This is made possible by the use of open-source smart contracts. Users of the platform have full control of their funds and are guaranteed safety.
End-to-End Encrypted Messaging - Traders can communicate with an integrated, secure messaging system that ensures no one can read messages with the exception of the parties involved. The only time LocalCryptos can read messages is when there is a dispute between a buyer and a seller.
Human-to-Human trading: Trading on the platform connects you to real humans which is different in the case of centralized exchange where there is a high probability of you trading with bots.
changeNOW is also a non-custodial instant exchange that allows for the seamless swapping of over 200 cryptos. Being integrated with LocalCryptos's non-custodial multi-crypto web wallet will enable quick swapping of $BTC, $ETH, and $LTC without having to leave the platform.
One interesting fact about changeNOW is it's no account registration feature which makes it possible to exchange cryptos anonymously. The integration will allow LocalCryptos customers to exchange supported cryptos without additional information, users will enjoy limitlessly exchange, and the best crypto rates in the market. With as low as $2 worth of coins, traders can perform a swap.
Do you plan to exchange your crypto earnings to FIAT? If yes, find local dealers willing o buy your cryptos at a good rate on LocalCryptos