Our goal: A Bitcoin exchange in China by late summer

Rising Sun
Photo: Stephanie Costa, CC BY 2.0, (Not changes made)

The blockchain’s block 360649 registered the first transaction carried out by two Coinffeine users with real money. Since last June 12th, a small group of users is testing the Beta version of Coinffeine, as prior step to its impending public release.

The transaction of 0.0549 BTC, verified at 21:47:13 last June 12th of 2015 recorded a Smart Contract between two users that has been created following the Coinffeine Protocol and it had enabled both parties to exchange fiat money by bitcoins in a decentralized manner.

For several weeks the Coinffeine’s development team will work closely with this small group of users to ensure that everything is ready for the Beta public release, in which users who choose so, will be able to start exchanging bitcoins and fiat money in a distributed and automatic way.

 

Coinffeine will operate in China and 69 more countries from day one

On the eve of the launch of the Beta version, we are pleased to announce that Coinffeine will be available from the first day in more than 70 countries. This is possible because Coinffeine uses local payment processors -companies as OKPay– to manage the fiat money, and the users will manage the bitcoins using the desktop application as a wallet. Coinffeine doesn’t require identification of the users, or to do a complex legal feasibility study for each of the countries where it will be operating, as our company does not manage money deposits or customer’s bitcoins.

The Coinffeine launch strategy aims to position our product in markets such as China, one of the countries where we will have presence from the day one, where traditional exchanges such as Coinbase or BitStamp cannot easily operate.

China proved to be one of the most active markets in late 2013, before the authorities banned the operations of Bitcoin exchange companies. Since then, Chinese authorities allow individuals to possess and exchange bitcoins particularly, but the operations of companies managing deposits of bitcoins (exchanges) are not allowed.

However, Coinffeine doesn’t accept bitcoin or fiat currency deposits and, even though the user experience is the same as with a traditional exchange, the exchanges are made P2P -among users- what it makes our product to fit perfectly into the Chinese market.

The data also shows that 20% of OkPay users come from China, so to try to differentiate ourselves in a market with almost no competition seems a good opportunity.

 

A replicable and scalable model

Being able to launch our product in more than 70 countries right from the start, simply is just a proof of the scalability of a model like Coinffeine.

Although we decided to start with those markets where there is a high potential and less competition, Coinffeine plans to integrate other payment processors like Dwolla or even PayPal at a very low development cost. Very soon we will be present in many more markets.

We are a start-up that wants to build a business model that is replicable and scalable. In Coinffeine we believe that taking advantage of P2P and decentralized technologies, such as Bitcoin, is the most natural way to achieve that.

Our goal: A Bitcoin exchange in China by late summer

We lost a genius with Nash, but not his equilibrium

John Forbes Nash
Photo: Peter Badge (Wikipedia), CC BY-SA 3.0, (Crop Image)

One of the fathers of game theory, died together with his wife in a car accident last weekend. John Forbes Nash, aged 86, had just came back from Oslo where he collected the prestigious Abel Prize from the Norwegian Academy of Science and Letters for his mathematical work. Interestingly, 21 years ago now he also came back from Scandinavia with another prize. On that occasion he was awarded the Nobel Prize in Economics for his pioneering mathematical work in the 1950s. The prize recognized his work on the concepts of equilibrium in game theory.

His analyses in cooperative and non-cooperative games, known as the Nash Equilibrium, provide solutions to situations in which two or more parties interact to make decisions. His work have played since an essential role in the development of many branches of science, such as politics, biology, philosophy, computer science and of course economics.

“A set of strategies, in which no player acting alone can change your strategy to achieve a better outcome for himself,” is the definition devised by Nash equilibrium and has great importance in a situation where it does not exist trust between the parties, whatever its nature.

Coinffeine’s protocol allows decentralized exchange of bitcoins and has been developed based on Nash’ work and game theory as there is no trust between the parties and there is not a trusted third party. To exchange bitcoins and fiat money in Coinffeine both counterparties are matched automatically, without knowing who your counterparty is. This could have big risks if not for beautiful minds like Nash who have made this possible.

With the death of Nash, the world lost a genius. But fortunately his legacy will remain and the applications it may have, will be immortal.

R.I.P John Forbes Nash

We lost a genius with Nash, but not his equilibrium

Coinffeine and its first days out there

World
Photo: Robert Couse-Baker, CC BY 2.0, (Not changes made)

As you know the Coinffeine’s Technical Preview has been ready for download from our website a few days now. As we explained on the download page, the opinion of the community is very important to us. All feedback and suggestions made by early Coinffeine users are analysed in detail by our developers, and where appropriate introduced in our roadmap of changes to be implemented.

The truth is that the answers received from the community so far, have exceeded our expectations. In just two days the application was downloaded more than 600 times, operations of purchase / sale have been recorded more than 2,000 times and we had more than 1,300 visits to our website. Specialized media such as Bitcoin Magazine, CryptoCoinsNews and Digital Money Times picked up the story, and in Spanish it was reports in OroyFinanzas.com, Sobre Bitcoin y Cripto Noticias. And even in Russia the launch of our Technical Preview had great impact after being published in Bit Новости. There is no doubt that the interest in our application motivates us to work tirelessly to develop Coinffeine so it becomes the distributed Bitcoin exchange the community expects and needs.

During these days of incessant activity in Coinffeine, where our development team has worked tirelessly to improve and implement difficult technical aspects, it has been a great help and a great honor to have the feedback from Mike Hearn.

Hearn opened a thread on Reddit just few hours after our launch. He wrote: “Primary things to notice: the app is genuinely as P2P as possible for this design, and the user interface is very nicely done. They got a professional UI designer on board and you can see the huge improvement from earlier versions”.

It is a valuable reward to read this about our application, when the person behind these opinions is one of the most recognized developers in the Bitcoin ecosystem. But it is also a great responsibility, because it makes us even more aware of the enormous expectations placed on Coinffeine. Expectations that we do not only aim to satisfy, but to overcome.

We would like to thank the public reception of Coinffeine’s first days out there. And we would like you to know that our great little team works tirelessly to ensure that the first distributed Bitcoin exchange offers a unique and incomparable P2P exchange. And for that, your participation is crucial.

Have you already downloaded our app? Do you have any feedback or suggestions? What impressions do you have? Just tell us. Send an email to support@coinffeine.com. All your comments will make from Coinffeine a better platform for all.

Coinffeine and its first days out there