We use smart contracts to make it technically impossible for us to move your escrowed crypto to our pockets. And by the same token, we prevent potential hackers from doing the same.
We use end-to-end encryption technology to make it impossible for us to read your messages, unless you volunteer them to us during a payment dispute. By doing that, your sensitive personal information is safeguarded.
We use non-custodial web wallets to make it impossible for us to touch the crypto in your LocalCryptos wallet.
We accomplish this using in-browser cryptography via the Web Crypto API. Nearly every aspect of LocalCryptos is powered by cryptographic wizardry.
For a centralized exchange, adding a new crypto is simple. Virtually all they need to is spin up a node and flick a few switches.
Because LocalCryptos is a non-custodial platform, the process is more complicated.
We first need to spend time studying the protocol and mastering its scripting language. We’ll begin by reading all the papers and technical documentation, and reaching out to the developer community. Next, we look at existing on-chain escrow solutions and ideas, if they exist, and learn their flaws.
Then we spin up our node infrastructure and sync to the network. This is the easy and boring part.
Next up, we design and develop a non-custodial escrow mechanism suitable for peer-to-peer trading. With Ethereum, we built a purpose-built smart contract coded in Solidity. On Bitcoin and Litecoin, we took advantage of the stack-based Script language to create an P2SH escrow contract using an on-chain commit-and-reveal scheme.
With Dash on the way, our escrow solution is likely going to make use of Dash’s unique InstantSend and ChainLocks features to make peer-to-peer trading nearly instantaneous. More technical details will be announced with the launch, as all our escrow scripts are open source.
Once the escrow mechanism is ready, it’s put into action. But first we need to build a new self-custodial web wallet to let you send and receive crypto with ease, while maintaining complete control over your private keys at every turn.
Finally and most importantly, lots of testing takes place before the marketplace goes live.
LocalCryptos is a peer-to-peer crypto marketplace with more than 100,000 users worldwide with traders in 100+ countries (Venezuela being #1). It’s the most popular non-custodial fiat on/off-ramp.