Leveling the Trading Field with the P2P Swap Button
Kirobo, an Israel-based blockchain technology innovator, has announced the release of its ‘P2P Swap Button’. This is the first decentralized, non-custodial P2P swapping platform that enables cryptocurrency holders to execute peer-to-peer token swaps without the need for an exchange or custodial OTC party and without losing money on high-volume trades.
The Problem With Crypto Trading over Exchanges
Token swap is a key feature of the cryptocurrency ecosystem. It allows users to diversify their portfolios, perform arbitrage, hedge against losses and support new DeFi projects. Therefore, token swaps offer a huge playing field for token holders in the crypto economy.
But until now, two-way cryptocurrency transfers were considered to be far too risky to perform without going through an exchange or custodial OTC party. However, centralized exchanges are custodial, which is a security risk. Decentralized exchanges are not custodial, but slippage causes crypto users to lose money with every trade. When users want to sell their holdings, especially a large amount, the price of the crypto goes down, forcing users to sell at a discounted price.
Reaching a Milestone in Crypto Trading
Kirobo’s P2P Swap Button is a decentralized,non-custodial solution enabling crypto users to swap tokens directly with peers without losing money in the process, thus leveling the crypto trading field. This innovative solution completely avoids slippage problems by taking token swaps off-exchange and allowing users to set their own prices for their tokens.
The problem of exchange-dictated slippage is negated by requiring the two trading parties agree upon a price before the swap is finalized. Additionally, the swapping platform allows traders to agree upon a time at which to execute the swap, so they can avoid high gas fees by selecting off-peak trading hours.
Kirobo’s P2P Swap Button is an extension of its Undo Button, which is the cryptocurrency industry’s first retrievable transfer service. The Undo Button protects the first party with an authentication key that the second party must enter in order to complete the transfer of funds. In case no receiver enters the authentication key, the sender can execute a refund of the tokens to their wallet.
The transaction process for the P2P Swap Button is very similar to the Undo Button, except that the second party must also sign the transaction, and the final stage is a two-way transfer executed by a smart contract. In this transaction, both parties have full custody of their funds until the transaction is completely executed.
Like with the Undo Button, the P2P Swap Button provides the first party with the ability to cancel the trade and retrieve their funds until the correct passcode is received.
How Kirobo Assures Security of Transactions
The P2P Swap service is built on top of the Ethereum blockchain and is compatible with Ethereum and ERC-20 tokens (the majority of tokens in the crypto market are ERC-20 tokens).
Kirobo’s unique authentication key is divided between the initiator of the transaction, the Kirobo server, and the smart contract, so there is no single point of failure and the system is practically unhackable. And because the service is non-custodial, a hypothetical breach would gain the hackers nothing.
Reinventing Crypto Transactions to Level the Trading Field
In an effort to level the playing field and promote cryptocurrency adoption, Kirobo provides the P2P Swap Solution free of transaction fees. Kirobo’s co-founder and CTO, Tal Asa, described the innovation as a tool that “allows users to benefit from more lucrative trades while protecting them with a bulletproof, non-custodial authentication mechanism.” As with the Undo Button, Asa said, he expects the P2P Swap Button to encourage adoption and use of virtual currency, giving a real boost to the ecosystem for years to come.
