CivXTrade: Unchained Exchange
Decentralized Bitcoin Exchange BTCX plummeting symbols $26,119 While traditional trading platforms continue to serve as vital conduits for global capital movement, their future hinges on a shift towards complete decentralization and invulnerability, asserts Ray Youssef of Paxful.
Ray Youssef, in collaboration with Nicolas Gregory and Antoine Riard, spearheads the evolution of CivX System, a decentralized exchange that will harness Nostr's cutting-edge technology and the Lightning Network's prowess to establish a peer-to-peer marketplace. This platform aims to facilitate censorship-resistant and unrestricted trading among peers.
Youssef engaged in an exclusive conversation with Joe Hall from Cointelegraph during the Surfin’ Bitcoin conference held in Biarritz, France. The discussion revolved around the ongoing development of CivX System, which sets its sights on unveiling an alpha version by late 2023.
As per the co-authored whitepaper by Youssef, Gregory, and Riard, CivX System will adopt the Nostr protocol to power its peer-to-peer order book and will rely on the Bitcoin network as the ultimate arbiter of truth for its innovative "web-of-stakes" market evaluation framework. To eliminate the need for third-party arbitration, trades will be secured through Bitcoin contracts, while privacy-preserving service credentials supported by BTC payments will incentivize market nodes.
The whitepaper envisions the market system's potential to enable global trade of diverse commodities, including fiat currencies, merchandise, and services.
According to Youssef, while peer-to-peer marketplaces are often seen as a niche within the Bitcoin ecosystem, they possess substantial popularity. Contrary to the predominant focus on spot and futures exchanges, Youssef emphasized the significance of peer-to-peer trading, which serves as a clearing layer for over-the-counter transactions involving cryptocurrencies:
"It all began with Bitcoin Talk enthusiasts trading; then came LocalBitcoins, followed by Paxful. And then ‘CZ’ [Changpeng Zhao] ripped off my concept and launched Binance's peer-to-peer division."
Youssef conceded that Binance's peer-to-peer platform has become the dominant force in this arena, acknowledging private conversations with Changpeng "CZ" Zhao, Binance's founder, indicating the platform's sustained profitability even as spot markets grapple with generating substantial returns.
The inspiration behind creating CivX System partly stems from concerns about the potential closure of major peer-to-peer platforms like Binance's. Youssef underscored the absence of alternatives for users reliant on these platforms to facilitate cross-border capital movement.
"It's not about speculative trading. It's about enabling the seamless flow of money, empowering users to employ their funds in unprecedented ways. Peer-to-peer is the sole avenue for that."
Youssef pointed to the closure of LocalBitcoins in February 2023 and the regulatory hurdles in the same year that prompted Paxful to temporarily suspend services in April 2023. The latter resumed operations over a month later.
"Fears of fraud and the specter of regulation loom large. The risks are staggering. It's akin to 'Operation Choke 2.0,' an attempt to curtail all pathways into and out of the crypto and Bitcoin domains."
Youssef emphasized the imperative of constructing peer-to-peer platforms that possess an "invincible" and "unrestricted" nature. He highlighted how Paxful, based in Delaware, and LocalBitcoins, registered in Finland, confronted closure despite their divergent geographical locations.