BTCPAY, also known as BTCPAYmarket.com, is a decentralized cryptocurrency exchange which processes all encryption client-side, allowing the exchange to eliminate a central database of passphrase of any other private user information.
On the web-based exchange platform, users of BTCPAY can purchase crypto assets and alternative cryptocurrencies such as XCP (Counterparty), Maidsafe, Gemz (Gem social media network) and Storj with Bitcoin, by sending an order transaction that matches a pending order.
Once an Order Match transaction is completed and confirmed, the order is finalized and the exchange processes the trade.
All sensitive and private information of users, including the passphrase of wallets, user information, and other personal data are stored in locally in the browser, enabling the exchange to maintain its operations without the establishment of a central database or server.
Thus, in an event of a hacking attack or a security breach, none of BTCPAY’s user data or funds will be compromised, and users will be able to trade assets securely without being concerned with various security measures existent on popular exchange platforms.
While many praised the efforts of BTCPAY in developing a full client-side cryptocurrency exchange, some were concerned that spying tools or malware injected into a computer could potentially leak the private information and passphrase of users stored in the browser. To refrain from such issues in the future, users suggested BTCPAY to integrated reputable Bitcoin hardware wallet service providers like Trezor and Ledger into the exchange.
Competition with Bitsquare
The only competition of BTCPAY in the cryptocurrency market is Bitsquare, a decentralized Bitcoin exchange that has garnered mainstream attention for its peer-to-peer Bitcoin exchange.
One major difference between BTCPAY and Bitsquare is the capability of Bitsquare in handling fiat-to-cryptocurrency trades. For instance, users on Bitsquare can purchase Bitcoin using leading currencies like the US dollar, British pound, and the Japanese yen, while BTCPAY only supports crypto-to-crypto trades at this moment in time.
Considering that BTCPAY is still in its early development phase, users shouldn’t disregard the potential integration of a fiat-to-bitcoin trading service by the BTCPAY development team. Regardless of the differences in services, encryption methods, and security measures of BTCPAY and Bitsquare, both decentralized exchange platforms are leading the Bitcoin industry into the right direction.