Announcing the global launch of P2P Derivatives Beta application

Crypto Garage
Jul 28, 2020 · 3 min read

We are excited to announce the launch of P2P Derivatives Beta application. P2P Derivatives is an application that uses Discreet Log Contracts (DLC) , to allow anyone to conduct Bitcoin based financial transactions without the need to put funds in the hands of a third party.

In this Beta version, a financial transaction referencing BTCUSD rates is possible on Bitcoin testnet and regtest. Anyone can use it by downloading and connecting it to a running bitcoind instance, there is no need to register any personal information.

What can we do on this application?

You can trade by downloading the application and performing wallet configuration. You select the counterparty, create and upload the terms of the contract as a CSV file, and then send an offer to the chosen counterparty.

Alice offers the contract to Bob

The selected counterparty screen shows the Offered contract, and if they accept it, the application will transmit the required information and broadcast a transaction locking up the collaterals on the blockchain.

Bob receives the offer from Alice

At the time of contract maturity, the Oracle will announce the outcome of the contract and provide a signature for the contract. The application will use this information to close the contract.
If both parties are online at maturity time, they communicate with each other and mutually create a closing transaction and one party will broadcast it (the status shows up as “Mutual Closed”).
If one party is offline, the online party will unilaterally broadcast the transactions to close the contract (the status shows up as “Unilaterally Closed”).
In both cases, the parties will receive the amount corresponding to the outcome that was stated in the contract.

Alice receives the amount corresponding to the outcome that was stated in the contract

Do you wanna try P2P Derivatives?

Do you wanna use it? Here is guidance for the setup and usage guideline.
Also, you can watch the tutorial video below.

If you have any comments or feedback, please contact us at info@cryptogarage.co.jp.

Do you wanna develop P2P Derivatives?

The P2P Derivatives application, as well as the supporting libraries are open-source and contributions to any of these libraries are very welcome.

Limitations

As a beta version, the application has several limitations. First of all, the application is not currently available on mainnet. In addition, we strongly discourage anyone from trying to use it on mainnet, as this will more than likely lead to loss of funds. Another item to highlight is that running a bitcoind instance is the current requirement for the application. The reference rates are also currently limited to BTCUSD. Finally, the communication between the application instances is currently done through a central server managed by Crypto Garage, and not through a P2P network.

Do you wanna know about DLC and develop it?

To find out more about DLC, Please have a look at the work in progress Specifications or come join the #dlc Channel of the LDK Slack.

One last reminder, you can download P2P Derivatives Beta application without your private information.
At Crypto Garage, we are architecting cryptofinance.
If you are interested, please contact us at
info@cryptogarage.co.jp.

Disclaimer
Crypto Garage is not a regulated or a licensed financial company. This application does not and is not intended to constitute investment/tax advice or an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction.

Crypto Garage

Architecting Cryptofinance