Hodl Hodl P2P

Anyone heard of Hodl?


I’m curious how this compares with Bitsquare.

not decentralised?

HH is not decentralized. Centralized exchanges carry various risks due to their design (single points of failure).
HH will face trouble from regulators and in general HH is not as resilient as Bitsquare.

I assume their lenient attitude towards certain payment methods will backfire (eg papyal)

Privacy is much better protected in Bitsquare.

HH might be a little more convenient to use (didn’t try) but the design would allow it.

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yeah…thats what i mean…hodl is not decentralised :slight_smile:
i think in this day and age everyone needs to run a server, and if they dont get the reason for it…then oh well… decentralised/trustless models make a lot of sense and you need to run the server yourself.


My response:

I can’t get the childish response from the dev.
They didn’t even invent anything new. I used a few times multisigna about 1 or maybe 2 years before and they are good. No volume enough though, and that’s something that still surprises me. They understood that if they achieve traction, someone will ask questions so they kept anonymous (I have the feeling/hope that some of them might be working now for bitsquare now) and they paid for it, because to stay anonymous rested confidence.
Anyway, you still can use today multisigna with lower fees than hodlhodl, a platform only on testnet and where we have no proof of honesty from arbitrators yet.

Extra: Why isn’t Localbitcoins already using multisign transactions to avoid hacks?

Why aren’t all exchanges using multisig to avoid hacks?
same answer. it’s a tradeoff between security and availability of funds. I would argue account hacking is the least of their issues.

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So I have to assume Localbitcoins, like all major traditional exchanges, is also running a fractional reserve system to use funds which don’t belong to them?

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if by fractional reserve system you mean having coins in cold storage being used to transfer between users of the platform, maybe that is the case. I don’t know of any exchange that actually trades on fractional reserve (like mt-gox did, and bitfinex after the hack, before the settlement).

I’d say all the classic exchanges are working with fractional reserve (spending user’s funds on custody) but we only know that when problems appear and clients start to ask for their money.