Coinbend: p2p coin swaps with complete strangers.
Announcing CoinbendA few days ago I released my prototype for trading alt-coins without a third-party. My software is the first of its kind to be able to do this - all existing exchanges can't because of transaction malleability but I've found a way to solve this problem for alt-coins without resorting to third-party trust . . . which means: hello functional cross-currency smart contracts. But before I get you too excited: this is only a development prototype missing a lot of features that a consumer release would have.
Even though the software works fine with real money - I suggest you only use this with testcoins for now. And keep in mind that p2p matching isn't functional and there isn't even a refund option so only direct trade works. But having said that: you can, as of this very moment: use this software to trade alt-coins directly with other people. Even if you've never met them before and don't trust them: you can still trade coins. So hopefully when this is finished there will be no more escrow scams or hacked exchanges.
The main benefits of my design:- Dynamic multi-currency support. It will work with Bitcoin, Litecoin, Dogecoin, Namecoin, Feathercoin, Peercoin, ... any of the hundreds of alt-coins and future alt-coins can be traded in arbitrary combinations.
- High security, trustless. Coinbend uses a new type of cryptography based on time-lock encryption that allows the exchange to provide a secure trade system without third-party involvement.
- Peer-to-peer. Coinbend is the first p2p exchange for alt-coins to solve the trust problem. Existing exchanges suffer from transaction malleability or aren't truly peer-to-peer but Coinbend uses some clever game theory and crypto to provide the first truly trustless exchange.
If anyone wants to check out what I have so far and give me some feedback - I'd really appreciate it as this hasn't received much attention.
Btw, check out the demo nodes:
http://alice.coinbend.com and
http://bob.coinbend.com. Instructions are in the main thread if you want to try out some simulated p2p trading with testcoins or you can download the main client and try it with a friend using currencies of your choice.
See the main thread here for details: https://bitcointalk.org/index.php?topic=1154211.0
