Manfred Karrer

Bitsquare – The Decentralized Open-Soure Cryptocurrency-Fiat Exchange

Exchanges are often criticized as a central point of failure of the cryptocurrency space. This isn’t without justification as, in recent years, we have seen a number of exchanges get hacked, robbed, or embezzled by their founders, which is far from insignificant. One proposed alternative are decentralized exchanges that would allow people make peer-to-peer trades using sophisticated smart contracts. However, there remains the fundamental challenge of interfacing with the legacy banking system.

Manfred Karrer joins us for a lengthy discussion on Bitsquare, a decentralized cryptocyrrency exchange which supports most fiat currencies and cryptocurrencies. Built to be a decentralized equivalent of LocalBitcoins, the Bitsquare client, which connects to the peer-to-peer network, uses Tor by default, which makes it almost completely anonymous. There are also a number of safeguards in place to eliminate the potential for fraud and theft, as well as an arbitration system to resolve disputes between traders.

Topics we discussed in this episode
  • The motivation behind Bitsquare
  • The Bitsquare client and user experience
  • A walkthrough of a typical trade
  • The mechanics of the order book
  • The fiat currency transfer mechanism
  • The current and future arbitration process
  • Manfred’s thoughts on DAOs
  • Bitsquare’s product roadmap