As of yesterday, the exchange is now known as LocalCryptos, and it aims to become an “all-in-one crypto marketplace” by offering a much broader array of cryptocurrencies to trade, beginning with Bitcoin.
“LocalEthereum began in 2017 as the first peer-to-peer marketplace for Ethereum. Now, we are putting you in control of Bitcoin and more,” read an email announcement from the team. “LocalCryptos is the same platform as LocalEthereum, only with a new name, new features, and more cryptos.”
What that means is that the exchange will continue to run as a dapp on the Ethereum blockchain. In order to trade, users will need to register on the platform and execute trades through a smart contract.
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Currently, the platform records an average of about 17,680 monthly transactions, with a trading volume of 10,607 ETH. DappRadar ranks LocalCryptos within the top 100 most active dapps, and tenth among dapps meant for crypto trading.
So how will an Ethereum dapp be used to manage a Bitcoin wallet for transactions without actually controlling any of the funds? Almost the same way it did it for Ethereum, according to LocalCryptos.
“LocalEthereum wasn’t a simple LocalBitcoins clone,” the exchange boasts in its announcement, with a nod to non-custodial escrow, which the platform uses to lock up tokens in an auditable smart contract. With Bitcoin trades, the exchange will use something called P2WSH (Pay to witness script hash), which, in simple terms, makes it so trades can be verified to meet the requirements of the parties involved.
LocalCryptos also guarantees that these addresses are, “for all intents and purposes,” impossible to hack. So from a tech perspective, the exchange promises to offer other P2P platforms a run for their money.
And it comes at an opportune time, too. With peer-to-peer exchanges such as Paxful gaining in popularity and expanding to new markets, and LocalBitcoins losing ground on account of pressure to introduce KYC procedures, a new competitor like LocaCrytpos could find plenty of demand for its services.