Exchanges, as well as banks, perform similar functions during the movement of currencies. However emerging decentralized digital exchanges are mirroring fiat banks in terms of rules, fees, and regulations.
It is true that a centralized exchange does not have the same control over a person’s currency like banks, however, their fees, rules about payment option, waiting times, and identification verification are causing many users to feel a familiar sense of control over their tokens.
In the case of cryptocurrency, exchanges are in the majority, but they can be completely removed from the Bitcoin and Ethereum turnover system because of the peer-to-peer marketplace.
LocalBitcoins has tried to fill this gap in the crypto market. However, this is fraught with issues – such as high fees problems – and dangers – such as scams and con men.
Qvolta, a company taking the idea of LocalBitcoins a little more global and useful, thinks that simplifying the trading of cryptocurrencies, as if it was just between two people, can lure more skeptical people to the world of cryptocurrencies, but also break the hegemony of exchanges.
Qvolta, instead of following the model of exchanges, rather is of the opinion that linking buyers and sellers of cryptocurrencies – such as Bitcoin and Ethereum – should be simplified. They propose these buyers and sellers setting a fixed price, and then placing that on a marketplace for anyone to buy in a matter of minutes.
It indeed makes the market a world wide one, also because Qvolta says it will act as a guarantor for the transactions as people avoid the confusion and rules of exchanges, as well as fees.
Guarantor of decentralization?
The idea of being a guarantor, sounds a lot like Qvolta is offering itself up as a middleman, a centralised regulator, which in turn sounds exactly like what a bank does, and is therefore very off the path for decentralised cryptocurrencies.
However, the company feels that although it is acting as an intermediary, its role is to simply assure the transactions take place, and not to get their cut.
Qvolta maintain that their fees and commission are low – lower than LocalBitcoins – and in fact the fiat money from a transaction is never in the custody of Qvolta.