The Community-Owned P2P Exchange The only exchange which distributes 100% of profits back to token holders - Blockchain ANN - All About Cryptocurrency

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Saturday, April 7, 2018

The Community-Owned P2P Exchange The only exchange which distributes 100% of profits back to token holders



Abstract

 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.

 LocalCoinSwap is holding a crowdsale event of LCS Cryptoshares. Cryptoshares are a digital asset which will be used to facilitate distribution of all profits made by the LocalCoinSwap platform, in addition to all profits made by new business ventures under the LocalCoinSwap umbrella. Cryptoshare holders will additionally receive airdrops of new ICO tokens listed on the LocalCoinSwap platform.

 The platform implements a novel approach to traditional company ownership by utilising blockchain technology to distribute the entirety of the site's profits to holders of LCS Cryptoshares. This asset entitles investors to regular dividend payments denominated in all of the currencies traded on the platform. Holders of the Cryptoshare may also participate in the long run vision and decision making of the company itself through democratic voting in a proof-of-stake system. This replicates  the dividend payments and shareholder voting of traditional companies, with the added benefits of blockchain technology and decentralisation. 

 Funds raised from this crowdsale event will be used to expand and speed up the development of the LocalCoinSwap platform and increase the number of cryptocurrencies which the platform is able to support on release.

 Centralised cryptocurrency exchanges in their current form are fraught with inefficiencies, security risks, long wait times and unreasonable veri fication requirements. This results in high barriers to entry for a huge number of potential users. Commonplace also are unethical business practices including insider trading, front running, and deceptive pricing.

 As long as these problems exist, there will always be a demand for P2P marketplaces.  P2P marketplaces provide direct access between buyers and sellers, which represents the truest form of free market trading.

 The future of the digital currency ecosystem relies on the development of a robust P2P exchange which supports a diverse choice of cryptocurrencies. The innovative distributed ownership model offered by LCS Cryptoshares will bridge this gap in the market, while delivering the profits of the platform back into the hands of its users. In addition, LocalCoinSwap will be the catalyst for expansion of the cryptocurrency market by enabling new users through the elimination of all barriers to entry.


Problem Overview

 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 mainstrem 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  non-mainstream 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.


Creating the Solution
 
 The digital ecosystem is here to stay, and the mainstream economy is beginning to embrace the ideas of decentralisation and unrestricted trade.

 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.

 There is currently a gap in the cryptocurrency market creating an unserviced demand. Across community forums and social media sites in which traders participate, it is a common frustration that users are unable to quickly or easily purchase non-mainstream cryptocurrencies. Users also express repeated concerns about overseas banking transfers and onerousverification procedures. 

 The LocalCoinSwap infrastructure will close this gap in the market, not only by offering a P2P exchange for all cryptocurrencies, but by also tokenizing ownership of the exchange itself into the hands of its users through the world-first Cryptoshare system.

 The LCS Cryptoshare system utilises blockchain technology to replicate traditional company ownership through shares in a more secure and decentralised manner. Much like the issuance of regular shares and profits distributed through dividends, LocalCoinSwap issues Cryptoshares which entitle holders to regular redeemable dividend tokens. Unlike a traditional financial organization the ownership and dividend structure of LocalCoinSwap is hosted entirely on the Blockchain, providing a publicly auditable and unforgeable ledger of the company’s financial performance.

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.


Cryptoshare ICO Issuance




Use of funds raised from Cryptoshare issuance
 



 LocalCoinSwap will detail a breakdown of all expenses each financial period, to provide full transparency to its investors. The figures above provide an estimate that will depend on the exact amount of revenue made by the platform. In exceedingly profitable financial periods a lower percentage of site revenue will be used for administration and maintenance expenses.

80%: Distributed through the dividend system equally to all holders of LCS Cryptoshares.

9%: Used for administratio costs which consists primarily of staff wages and fees paid to contracted workers. LocalCoinSwap staff are paid a maximum of a market wage in line with their relevant qualifications and experience. All salaries and contracted rates will be detailed in LocalCoinSwap’s financial announcements to increase the transparency of the platform.

6%: For maintenance of the exchange platform. This includes costs of servers, replacement of physical equipment and fees paid to technical services.

5%: Allocated to enhance security of the platform. These expenses include security audits, penetrations testing and costs of implementing additional protection measures.


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