What is NonCustodial?

What is a NonCustodial P2P Exchange?

A NonCustodial P2P exchange is a platform that enables direct peer-to-peer transactions between users, without the need for a central authority to hold or manage their funds. In other words, users maintain control of their private keys and can securely exchange cryptocurrencies or fiat currencies with each other. All through a fully verified and secure smart contract. 

How is a NonCustodial P2P exchange different from a traditional exchange? 

Traditional exchanges typically require users to deposit funds into the exchange's custody, where they are managed by the exchange. With a NonCustodial P2P exchange, users maintain control of their funds at all times, as they hold the private keys necessary to access their funds. This provides users with greater security and control over their assets.

How does a NonCustodial P2P exchange ensure the security of transactions?

A NonCustodial P2P exchange can ensure the security of transactions through the use of smart contracts. Smart contracts are self-executing contracts that are programmed to automatically execute when certain conditions are met. In the context of a P2P exchange, a smart contract can be used to ensure that the terms of the transaction are met before the funds are released to the buyer.

For example, let's say a buyer wants to purchase cryptocurrency from a seller on the exchange. The smart contract would require the buyer to deposit the agreed upon amount of cryptocurrency into an escrow held by the smart contract. Once the seller confirms that they have received the payment, the smart contract would release the cryptocurrency to the buyer.

This ensures that the transaction is completed only when both parties have fulfilled their obligations, and that the funds are held securely in the smart contract until the transaction is complete. Additionally, the use of a smart contract eliminates the need for a central authority to oversee the transaction, further enhancing the security and decentralization of the exchange.

What types of cryptocurrencies or fiat currencies can be exchanged on a non-custodial P2P exchange?

In our first phase as a NonCustodial exchange, we based our smart contract on the Binance network (BSC) as it is currently the most used and with the highest capitalization, therefore, when it comes to cryptocurrencies, we accept various previously approved tokens and with many guarantees of operation such as they can be (USDT, USDC, BNB, ETH, etc).

In terms of accepted Fiat currencies, we have available the largest number of Fiat currencies in the world.

It's important to note that the use of a smart contract in a non-custodial P2P exchange allows for more flexibility and customization in terms of the types of cryptocurrencies and fiat currencies that can be exchanged. Smart contracts can be programmed to support any cryptocurrency or fiat currency, as long as the necessary information is included in the code.