The recent hack of Bitcoin exchange Bitfinex is reminding everyone once again the importance of holding your own keys, using paper and hardware wallets as well as setting the stage for wider use of decentralized exchanges.
Also read: Bitfinex Hack: US Regulation ‘Prevented Cold Storage Use’
Hodl Your Keys
One thing that is for certain is a lot of people keep large amounts of money on third party exchanges. The reasons for this is because people naturally like to trade, and secondly, there isn’t that many decentralized exchanges. However, numerous decentralized cryptocurrency exchanges already exist such as Bitsquare. Founder Manfred Karrer has the project currently running in beta at the moment and users can be seen on forums promoting its use. Many Bitcoin users are sick and tired of centralized exchanges failing to secure funds. Bitsquare’s Github repo explains how it is different than the rest:
Bitsquare is a cross-platform desktop application that allows users to trade national currency (dollars, euros, etc) for bitcoin without relying on centralized exchanges such as Coinbase, Bitstamp or (the former) Mt. Gox.— There are no central points of control or failure in the Bitsquare network. There are no trusted third parties. When two