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Qvolta Aiming to Break Exchange Monopoly

Bitcoin’s creation was intended to break the centralized nature of currency and money,
however, even though digital currencies are for the most part decentralized, they are still
under the influence of the exchanges that they are
traded on.

Fees, waiting times and identification are
all parts of traditional banking that exchanges have brought
through to digital currencies. And while this may not be
un-decentralizing digital currencies, it is making the users
very beholden to exchanges while they suffer extra costs.

Back to basics

Digitalized currencies have formed their own economy which has
appealed to people’s desire to go away from unnecessary
commissions and fees. Additionally, it is their decentralized
nature that also appeals to people’s mistrust of third parties.

Face-to-face meetings for people in the same locality can lead
to an agreement of terms, prices and even payment methods in
order to avoid the control that banks have over their money.
This removes fees, waiting times and other nasty surprises that
come with utilizing banks for exchanges and trades.

This becomes a little more difficult when it comes to digital
currencies as it is the centralized exchanges where these coins
mostly operate that hold all the cards.

There are of course services, like LocalBitcoins that aim to solve this as a
peer-to-peer network is set up in localized areas. But what
about the boom of altcoins and the desire for quick exchanges?

Globalized locality

Qvolta has taken on an ambitious project, to try
and compete with the hegemony of exchanges, trying to improve
on LocalBitcoins’ market space.

Qvolta’s aim is to make buying and selling cryptocurrency, like
Bitcoin and Ethereum, as basic as a peer-to-peer trade. If they can succeed at
this, Qvolta believes they will attract a large portion of the
new booming market currently left out by the complicated nature
of digital currency.

A peer-to-peer marketplace will ideally be set up by Qvolta
that lets buyers and sellers put their coins up at a fixed
price, rather than one defined by constantly moving markets. As such, the
belief is people will be attracted to a simple
click-and-buy/sell system.

In essence, the idea is similar to LocalBitcoins, as on Qvolta
the parties can agree to the payment method, including credit
card, bank transfer, but as well as trickier ones like PayPal, Skrill and other well-known
digital payment methods.

The guarantor

Qvolta expects to take things a little further by acting as a
bit of a big brother in the middle. By inserting itself as a
guarantor for the trades executed on the platform, Qvolta will
ensure payments and trades, but without actually taking control
of the funds.

Although Qvolta doesn’t hold fiat money, it may have many
worrying that they are indeed acting a little too much like a
centralized bank for instance. Their belief is that this
protection will allow for the idea of ‘LocalBitcoin’ to go
global.

 

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providing you all important information that we could obtain,
readers should do their own research before taking any
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for their decisions, nor this article can be considered as an
investment advice.

Source : https://cointelegraph.com/news/qvolta-aiming-to-break-exchange-monopoly

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