“Our platform enables Bitcoins trades privately and securely amongst traders in a decentralized way,” said Oladapo Ajayi founder of Coinsigner, a new dispute resolution service which allows decentralized Bitcoin exchanges i.e. Bitcoin to USD exchanges and other trades. All transactional data is shared only between traders and whomever they allow access to.
With the latest initiative Coinsigner will develop good terms with several credible Bitcoin investors as it promises that it provides a simple interface to sign and broadcast multi-sig transactions. The organization also provides templated contracts for quick agreements drafting for trading partners.
According to Coinsigner the terms of contract serve as a protocol for value exchange and are used to decide on final outcomes in cases of disputes. The organization aims to provide a risk-free, private and successful delivery of Bitcoins with the help of a patent pending system which will enable traders to adhere to the pre- agreed upon cryptographic contracts.
A release from the organization says that in a scenario that a buyer and seller create a contract for the purchase of Bitcoin to USD, the transfer of the USD takes place independent of Coinsigner. Now, buyer or seller cannot spend Bitcoin as it is locked on the Blockchain and open only when the terms of the contract secured by the multi-signature transaction aspect of the trade contract are fulfilled.
Coinsigner expects that with such a mechanism the buyer and seller parties be able to get satisfaction and would not feel insecure about the transactions. The company aims to provide a decentralized Bitcoin exchange functionality with the help of its patent pending, collusion deterrent, non-trust based process that will allow trades of various currencies and commodities for Bitcoins similar in process to the centralized exchanges.
The decentralized Bitcoin exchange functionality will provide unbiased and incentivized mediators arbitrate disputes when conflicts arise and for that it has three-step solution: First, there will be a Pre-defined Agreement between Dealer and Customer wherein dealer and customer meet at ‘Coilister’ and discuss a deal for the trade of Bitcoins for USD or others.
In the second step, Dealer and Customer will head to Coinsigner to start a contract for the pre-arrangement or prior promise to do a bank to bank transfer of cash or send goods for some amount of Bitcoins.
And, finally, if pre-arrangement goes alright then dealer and customer don’t need the Mediator. If there is a problem mediator decides who gets Bitcoin based on evidence and terms of contract.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org