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 peer-to-peer (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.
Cryptocurrencies and other digital assets are revolutionising the financial ecosystem. In 2017 alone the market capitalizations of all digital currencies grew by 3171% to 700 billion ($700,000,000,000) USD (source: coinmarketcap.com) . Unfortunately the growth of the cryptocurrency economy has been fraught with friction from the banking system. Hostile regulatory environments and conservative institutions have closed the accounts of traders and exchanges en-masse, spread contention in the media, and forced the implementation of onerous verification procedures which have transgressed the privacy of the community. The rise of cryptocurrencies has created huge economic and investment opportunities. However, many people remain on the sidelines due to lack of patience or tech-savviness, inefficient and lengthy subscription processes, and security concerns. Opening up trading accounts on exchanges can be an especially difficult task for users. Many exchanges restrict the registration of new accounts or require users to expose themselves to identity fraud and theft by submitting pictures of their passports and personal documents online. Users are regularly asked to transfer funds overseas to companies in countries with no legal oversight. Existing P2P markets are also highly fragmented and non-inclusive. Traders who wish to buy and sell outside the top few cryptocurrencies must access both a P2P exchange and a centralised mainstream exchange. At present there lacks a single mainstream P2P marketplace which allows more than one cryptocurrency to be traded for fiat currency simultaneously. This has created additional onerous fees for users whose only desire is to purchase a nonmainstream cryptocurrency with fiat cash as their starting point, as they must utilise more than one exchange and pay all associated fees to complete their purchase. They must also pay the transaction fees involved in withdrawal from one marketplace to another. This increases not only user inconvenience and wallet software requirements, but also user exposure to platform failure or hacking. In addition, the centralised ownership and clandestine company structure of mainstream exchanges allows little investment opportunity for the typical individual. Top exchanges have daily volumes in the billions of dollars, and investors have no mechanism through which they can share in the profits. Giant monopolies now dominate the cryptocurrency exchange market counterintuitively to the very fundamental global economic inefficiencies that blockchain technology has the ability to solve.
LocalCoinSwap represents a return to the most fundamental system of asset exchange without reliance on mainstream institutions – the P2P trade. By enabling P2P trading of all digital currencies LocalCoinSwap will put the market back into the hands of its users, allowing them to directly trade any cryptocurrency using any conceivable payment method in any geographical location. LCS Cryptoshares allow all traders on the exchange to take ownership in the platform they are trading on. Despite the straightforward nature of this concept, LocalCoinSwap is the first ever implementation of an exchange where the profits are distributed entirely through a smart contract Cryptoshare system, with the initial launch planned by August 2018.
Allocation of Cryptoshares
70%: maximum allocation to investors through entire crowdsale with burn of unsold
10%: allocated to a community venture fund, the use of which is voted on by investors
10%: allocated to the development team (frozen by contract for 1 year)
5%: allocated to bounty program for community engagement
5%: allocated to reward program for users who increase security of the platform