The New Demand For Cryptocurrencies Is On: How Is It Trading On Bitcoin Cash KYC-Free Exchange With Blind Escrow
The latest on bitcoin is all about KYC. How is it hurting investors? How are KYC free exchanges being involved?
Bitcoin Cash KYC Free Exchange
To contain the impact of shutdowns, governments are injecting record levels of new money into economies. Forcing many to look for an alternative, but safe ways of transacting are the restrictions imposed on people in countries all over the world. The blind escrow bitcoin cash trading is increasing because of this reason, as it is not burdening users with KYC requirements.
Having reportedly printed more money in less than six months than they have in several decades are some countries hit hard by the pandemic like the United State.
It is quite common that the deluge of new money that enters the system will also have dilutive effects on the value of money that is already in circulation without a doubt. Inevitably spurred on an increased interest in cryptocurrencies is this.
Forcing many to look for an alternative, but safe ways of transacting, are the similar restrictions imposed on people’s movement. The number of cryptocurrency holders in some ways linked to lockdown measures is why there is a recent increase in them.
The Increased Cryptocurrency Use
Cryptocurrencies are not just speculative assets as the events of the past few months have made it increasingly apparent. To shield savings or wealth from the effects of inflation they can be used as a practical tool. The use of cryptocurrencies fits very well with social distancing or stay-at-home measures furthermore.
Many people face obstacles to getting cryptocurrencies for the first time despite this. Still facing difficulties in acquiring these are even those with adequate knowledge about this fintech.
Cryptocurrencies are widely available at centralised cryptocurrency exchanges and at peer to peer trading platforms as it is true. Ultimately killing the interest of those searching for such alternatives are these institutions using elaborate and sometimes cumbersome procedures.
Driving people away from cryptocurrencies are for instance the know your customer processes which are mandatory requirements with many leading exchanges.
It was found that cryptocurrencies like bitcoin cash are ordinarily not supposed to be subjected to such restrictions. Exercising veto powers as is the case now, Satoshi Nakamoto’s vision for a peer to peer digital cash that was never premised on centralised third parties.
Know The KYC Barrier To Adoption
Many potential users may not see it as that alternative because they lack an identity document, while bitcoin appears poised to achieve Nakamoto’s vision. Turning out to be an Achilles Heel for crypto adoption efforts is the mandatory KYC requirement by exchange platforms. The same requirements are in fact identified as the reasons why many adults globally lack access to financial services.
One of the major reasons why many adults are unbanked is for instance according to the 2017 World Bank Global Financial Index survey as identifying the lack of proper identification. It was found that the financial technology of mobile money proved instrumental in thereby reducing the number of unbanked adults from 2.2 billion to 1.7 billion between 2014, and 2017 as the survey notes.
Faster and cheaper to use cryptocurrencies can help narrow the gap even further as many in the crypto community are hopeful. If restrictions that preclude potential users from accessing cryptocurrencies are dropped, then only this is possible.
Platforms like local.Bitcoin.com are embedded with blind escrow for bitcoin cash trades are not burdening users with KYC requirements as the reason is partly. They are not asked to disclose any personal details, as anyone can create an account on Bitcoin.com Local. Ideal for marginalised groups like undocumented migrants or those lacking identity documents for some reason or the other is the platform.
With the potential to hasten crypto adoption if only enough people know about it, is a platform like Bitcoin.com Local. Potential users may still want to know how the service works in practice.
Blind escrow put simply is the use of an autonomous contract capable of holding assets on behalf of two parties in the process of completing a transaction. Until the conclusion of a specific event or time, the autonomous contract will hold the asset in limbo.
Which is a functionality that allows for escrows, covenants, and decision-based transactions, Bitcoin Cash as well as Bitocin.com’s blind escrow system leverages Script called OP_CHECKDATASIG?
Even while it is in escrow, it means Bitcoin.com Local never takes custody of the bitcoin cash by having a blind escrow in place. To spend the BCH in escrow, it is technically impossible for local.Bitcoin.com. local.Bitcoin.com is uninvolved as both parties can complete the escrow on their own in the majority of transactions.
The platform can only allow the BCH to be spent by the buyer or seller, while Bitcoin.com Local does get involved when there is a dispute.
Being end-to-end encrypted in the user’s browser is every message sent via Bitcoin.com Local. Here it means that no one including anyone at local.Bitcoin.com reads those messages, as to the server, the messages look to be a bunch of random indistinguishable numbers.
That conversation is gone forever, once the keys are used to encrypt the messages are destroyed. The only time the staff reads messages is when the key required to decrypt them is volunteered by one of the parties according to the Bitcoin.com Local team.
It means the buyer only interfaces with the seller as the blind escrow is there to ensure trustless trading in other words. For places or countries that are traditionally shunned by centralised exchanges, this type of platform is especially suitable.
The Final Thoughts Before Signing Off
Traders need to trust each other in the absence of a trustless platform whereas that has not stopped reports of fraud and scams. Traders have an increased sense of security when Bitocin.com Local is involved.
The local. Bitcoin.com developers say when the seller puts BCH in escrow, they create an on-chain bitcoin cash transaction explaining how the blind escrow works. Containing two relevant outputs the escrow and the fee output are these transactions.
Spent by either the buyer or the seller is the escrow output. The fee portion of the trade is the second output. The fee can be reclaimed by the seller if the trade is unsuccessful as well as if the trade is successful the fee will be swept by Bitocin.com Local.
Traders on Local.bitcoin.com can create a trade with any payment method, unlike many exchanges with limited base pairs and currency options. For items or services, you can even open a trade.