P2P marketplaces need to become unstoppable, permissionless - Paxful co-founder
Peer-to-peer Bitcoin (P2P) marketplaces remain an important cog in allowing users to move money across borders, but their future depends on becoming permissionless and unstoppable according to Paxful's Ray Youssef.
Youssef, alongside Nicolas Gregory and Antoine Riard, is driving the development of CivKit, a P2P marketplace that will leverage the technology of Nostr and the Lightning network to power a decentralized platform allowing censorship resistance and permissionless trading between peers.
Youssef spoke exclusively to Cointelegraph’s Joe Hall at the Surfin’ Bitcoin conference hosted in Biarittz, France about the in-development project that is aiming for an alpha release towards the end of 2023.
According to the whitepaper co-authored by Youssef, Gregory and Riard, CivKit system will use the Nostr protocol for its P2P order book and rely on the Bitcoin network as a source of truth for its “web-of-stakes” market ranking paradigm.
Related: Tether signs MoU with Georgia to develop Bitcoin P2P infrastructure
Trades are set to be locked under Bitcoin contracts to remove reliance on third parties for dispute arbitration while market nodes will be incentivized by privacy-preserving service credentials backed by BTC payments.
The whitepaper outlines the aim of its market system enabling global trade of any kind of item around the world, including fiat currencies, goods and services.
According to Youssef, P2P marketplaces are popular but perceived as niche within the Bitcoin ecosystem. While most cryptocurrency users think of spot or futures exchanges and marketplaces why they consider trading, Youssef says that P2P trading, or over-the-counter (OTC) trading of money using cryptocurrencies kind of clearing layer is bigger than
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