CEX P2P under Governments Attack, let's Embrace DEX P2P

[Woodie]

I know centralized exchanges start with their 'centralized' exchange platforms first, then they create their Peer to Peer platforms for users, then Web3 wallets.

It is hard to believe that they give us truly P2P platform to use, and most of them require KYC to use P2P services too.

Agreed, centralized exchange's put their business interests first and its understandable...but can a Dex compete with a CeX in terms of interoperability & efficiency, I don't think so.

I know we are trying to avoid the bureaucracy and government control of these exchanges, but but can the DeXs we have handle the traffic that CeX p2p handle, and because so much resources go into maintaining and running of such a platform...do we have Devs ready to invest the resources to come up with such a platform that's not restricted to a few blockchains and guarantee safety of our crypto assets...I don't think so tbh. But with more exchanges being clamped down, I think we don't have a choice but to respond by going back to where it all started from...

[348Judah]

As governments are threatening on the use of P2P on centralized exchange, we should remember that decentralized exchanges p2p can give us the best experience in achieving our desired expectations from using them, we can afford the use of VPN or Tor in in achieving their usage.

There are not many real decentralized exchanges available today, Bisq is one of them but fees can be higher and it can be slower for people who are using it for the first time.
Recently there was for of Bisq called Haveno dex that is based on monero for more privacy and lower fees, but it is still in early stages.
Few more decentralized exchanges I know are Basicswapdex.com and Blockdx.net but they don't offer fiat/cash trading.
For P2P exchanges there are more options, but they are not decentralized, for example PeachBitcoin app, Robosats, lnp2pbot, NoOnes, etc.

You're right and I got your idea from here, we have only few decentralized exchanges, among the few, some of them do not offer for the service of p2p trading for local currencies isn't allowed in them, this is really going to be a major concern later in future because if paraventure everyone tends to do away with the centralized exchanges due to governments regulations, what other platforms are we going to have for the use of P2P trading in exchanging our crypto to fiat or fiat to buy crypto, it's better we begin to have as many as possible decentralized exchanges like bisq, which could serve on diverse purpose to the standard and taste of many traders and CEX users.

[SamReomo]

So now the new target of the government is centralized p2p exchanges where users can easily convert their crypto to fiat and fiat to crypto.

They are somehow trying to make such conversions harder and I believe they are doing it so crypto users may not be able to convert their crypto to fiat and fiat to crypto.

If decentralized p2p exchanges are working then that's a good sign, but still a question arises that for how long those decentralized exchanges will be safe from the government?

I think if in a country centralized p2p exchanges are under attack then in that country decentralized p2p exchanges are also at very high risk.

[internetional]

For P2P exchanges there are more options, but they are not decentralized, for example ... Robosats

Why do you consider Robosats as not decentralized exchange? Since January 2024, it works in a DEX mode.

The DEX is available at two addresses:
http://dex.robosats.com/ - with limited functionality,
http://robodexarjwtfryec556cjdz3dfa7u47saek6lkftnkgshvgg2kcumqd.onion/ - with full functionality.

Each user can take on three roles:
1. Maker - the one who publishes an order (exchange request),
2. Taker - the one who accepts an order,
3. Coordinator - the one through whose Lightning Network node the exchange is conducted.

All you need to become a maker or taker is a few sats in your Lightning Network wallet. Yes, even the recipient of sats must have some to pay the insurance bond for publishing or accepting an order. The bond is needed to avoid fake orders and fake responses. It is returned after the successful completion of the trade or after the cancellation of an order that no one responded to. However, if you back out of a trade that has already started (when the order has both a maker and a taker), the bond is not returned. Part of it goes to the other party, and the other part goes to the coordinator.

To become a coordinator, you need to have your own full Lightning Network node. Insurance deposits and the exchanged sats are sent to this node. The coordinator cannot seize these funds (the invoices they receive only allow them to manage the sats according to the specified scenarios). However, the coordinator can act as an arbitrator in a dispute: if the two parties involved in the trade cannot agree on whether all obligations have been met and the sats should be transferred to the recipient, the final decision will be made by the coordinator.

Coordinators can set a fee for their mediation. This fee is paid from the exchanged amount (a portion of it remains on the coordinator's node). Different coordinators may charge different fees.

Exchanging on the DEX requires trust in the coordinator. A coordinator who colludes with one party can leave the other party without Bitcoins and without fiat currency.

The coordinator for a transaction is chosen by the maker. If a potential taker does not trust the coordinator specified in the order, they should find an order with a different coordinator or publish their own order.

Decentralization lies in the fact that the RoboSats team retains only the functions of supporting and developing the protocol. Its source code is open, and anyone can launch their own platform on any server. The protocol provides for information exchange between coordinators. As a result, each coordinator has information about the status of all orders in the system. A new server only needs to connect to any coordinator, after which it can receive information about all available orders and coordinators, create new orders, and respond to them.

If desired, the system can also be used to exchange bitcoins for other cryptocurrencies.

[jrrsparkles]

Centralized P2P exchanges are nowhere near their Target range for sure because they all KYCed so this will be their last point of concern logically speaking. We expects the privacy which is a choice on our own and for that using Bisq or whatever decentralised P2P exchanges available but we need to understand government is not really trying to ban because they realised it's not possible so they are trying to centralized it as much as possible and take control of it.

[Sandra_hakeem]

Has a P2P exchanges war really started? I thought the government was tracking mixers or any tool used to enhance privacy, not P2P exchanges, as some of these services are still working.

Some, just like you said... Yunno what? The reality is far from what it looks like to you; most countries have taken the censorships really personal as they're basically out to extract documentations of people's private information, through KYCs.. Imagine being asked to release every user's data that has a link with their local bank? Crazy right?

I think if in a country centralized p2p exchanges are under attack then in that country decentralized p2p exchanges are also at very high risk.

You clearly have no idea about what you just said. Decentralization has never, and will never be leaked or broken. How do you charge a case on anonymous exchanges?

[SamReomo]

You clearly have no idea about what you just said. Decentralization has never, and will never be leaked or broken. How do you charge a case on anonymous exchanges?

I had some idea about it and I believe that's why I said that. When a country's government attack p2p centralized exchanges then that country's government tries their best to attack the decentralized p2p exchanges as well. I know that such attack isn't going to be a direct attack because it would be much tough for them to directly attack decentralized exchange p2p users as they can't do that directly.

The users who complete p2p transactions on decentralized exchanges also have to use banks in order to complete the fiat based p2p transactions and in such case banks could monitor the bank accounts or digital banking accounts of those p2p merchants and if they see suspicious transactions then they may freeze the accounts of the merchants who do p2p transactions on decentralized exchanges.

It would be much hard for the government's to track p2p crypto transactions but p2p crypto to fiat and fiat to crypto transactions can be tracked to some extent. Even sometimes in order to do that, government's can have their accounts set as merchants and whoever does p2p trading with them they track their accounts and take actions against those in stealth mode first and then some kind of direct actions.

[Mate2237]

Has a P2P exchanges war really started? I thought the government was tracking mixers or any tool used to enhance privacy, not P2P exchanges, as some of these services are still working.

if the government decides to consider them illegal, they will most likely arrest the developers, so the developers must be anonymous and use code hosting services away from GitHub. Then managing an entire node or all of the communication through Tor, and the problem that is always repeated will be liquidity.

Two of the Binance staff were arrested in Nigeria for manipulating the fiat currency below dollar. Binance vendors were inflation the dollar very high against the dollar in their exchange. And causing inflation in stock exchange so the government called two of the Binance staff to go and explained but they couldn't give good explanation so the two were arrested and one escaped. So Binance p2p in the country has been stopped and this extended to other centralized exchanges and most of the centralized exchanges have delisted the p2p in the country as the government directed them to do so.

And today being the 6th day of June, 16 US lawyers appeal to President Biden to intervene for the arrest of the US citizen Tigran Gambaryan by Nigerian government for the manipulation of the local currency in their website (exchange). And the 16 US lawmakers said, Nigerian government hold their citizen hostage. And I think that should be a legal battle.


So presently we only have few CeX (two), bitget and ByBit which are the most popular ones for now. And according to rumor those two will also be stopped. So we have the option for the real p2p which should be one on one or I know the person.