The only alternative to Bitcoin exchanges, who seemingly have a monopoly over the movement of the digital currency, has been LocalBitcoins. However, being localised offers its own set of problems. Qvolta is hoping that the benefits of a peer-to-peer exchange market can be taken globally on its platform.
Users in different countries rely on different exchanges to accept their local payment systems, be it credit cards, bank accounts or even things like PayPal and Skrill. But these exchanges hold all the keys and make all the rules.
Local payment on a global scale
Qvolta is looking to follow a true peer-to-peer market idea for its exchange of cryptocurrencies where people are selling directly to each other at a fixed price, rather than at a rate determined on a centralized exchange.
The idea is that people all across the world will be able to buy and sell Bitcoin and Ethereum, as that is what they only offer currently, with any payment method they want. The funds and the coins are guaranteed as Qvolta will look to act as the intermediary.
A similar structure exists in LocalBitcoins – a localised peer-to-peer marketplace, which require a lot of trust. LocalBitcoins however is limited in its offering of only Bitcoin and is the perfect hunting ground for scammers and con artist looking to prey on those close to them.
Qvolta believes that these issues can be cut out, and greater flexibility can replace them. The idea posed by Qvolta is that if they act as an intermediary, they can guarantee funds are sent and received in these peer-to-peer trades.
They have also seen it fit to add a dual security system, to protect personal data and accounts.
Guarantor of centralization?
Qvolta’s premise is that if a buyer is wanting to purchase Bitcoin on the platform, they can search for an offer that suits them, and pay for that in any form of payment they desire – PayPal, Skrill, Credit Card etc. Qvolta then becomes the guarantor and ensures the money spent gets the Bitcoin desired.
It all smacks a bit of a centralised system of checks and balances, much like a bank, and also much like Bitcoin is trying to get away from.
However, Qvolta, while admitting this causes some form of centralization, also says it will be taking commission and fees that are far less than that of even LocalBitcoins.
In fact, Qvolta does not even take custody of the fiat funds, the users are still making payment to each other directly.
A simplified system
Qvolta is of the opinion that exchanges and trades, as well as other factors associated with Bitcoin buying and trading as it stands, is confusing and scaring a lot of people off.
With Qvolta, the idea is that people are simply swapping fiat currency for cryptocurrency at fixed rates, but also with a guarantor. It is a simplified system that is also available globally.