LOCAL TERRA THE P2P DECENTRALISED MARKETPLACE
LOCAL TERRA THE P2P DECENTRALISED MARKETPLACE
Local Terra is A new and emerging protocol which won a funding proposal on Terra (Luna) Network back in April/May 2021 that aims to progress mainstream adoption and accessibility. Local Terra provided their firs community update last year and have been working towards developing a P2P decentralised marketplace.
just recently on 11 February Local Terra announced their launch sequence where in it they provide background information on how they commenced developing a trading asset using mAssets which are wrapped assets of real work stocks on Mirror Protocol.
P2P Trading
An interesting revelation that Local Terra raises is that in Venezuela, Colombia and Argentina trading of UST is not as easy or straight forward and in their experience to getting access to UST it took them two centralised exchanges, two wallets a decentralised exchange and a bridge which also was an expensive way of accessing UST Source.
So the team put in a proposal to build a decentralised exchange that would have a fiat on and off ramp and provide access to UST to people without the costly transfers. The team submitted a proposal to Terra and received significant support that enabled them to receive the funding they needed to commence development.
How P2P Will Work
Local Terra will act as an intermediator between parties who are purchasing UST with a number of fiat currencies. However, Local Terra never takes possession of funds instead developing a smart contract that that sellers can place the UST in escrow and once the fiat currencies clear in the sellers account they can release the UST that is in escrow.
As you can see from the image above there is no prearrangement between seller and buyer but sellers put their UST or CW20 assets into escrow and for offer on Local Terra. A buyer than comes along clicks on the seller they wish to buy from and deposit the money into their account.
There is an open line of communication between the parties undertaking the trade and purchasers must submit proof of payment for the seller to release the asset.
You might be wondering what is preventing someone from scamming the system and this is a concern and one the project has given time to come up with solutions. In the first image above you will notice that the sellers are listed by how many trades they have completed and there is also a reputation system.
There are limits to how much new users can trade and as they trade more their reputation grows as does their ability to purchase greater amounts of CW assets, UST and higher visibility on the platform. Furthermore, not completing a transaction will reduce your reputation and bad behaviour can get you banned from the platform completely.
Dispute Resolution
Alternatively if a purchaser doesn't receive their asset after making payment and the escrow isn't being released the seller can not just revoke it. The purchaser is able to open a dispute that is investigated by an arbitrator and if that fails to end the dispute it is put to a panel where quorum.
Arbitrators consist of Local Terra stakers that have high ranks and charge a fee for the service. This information and more relating to staking, fees, roadmap and more can be found in the Local Terra Litepaper.
Initial Thoughts
I am not sure what the project success will be but it definitely seems like it will meet a need and allegedly it is popular with some stating that this 50,000 UST purchase was from the Terra (Luna) Network founder, Do Kwon himself!
If you're interested in finding out more and following the project you can do so by visiting their official social media links below:
Twitter Medium Github Telegram
What are your thoughts on Local Terra? are you in a Latin nation and is this something that will work for you? let me know in the comments section below.
Image sources provided supplemented by Canva pro. This is not financial advice and readers are advised to undertake their own research or seek professional financial services
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I am wondering what will stop the governments from finding out who is in charge of these wallets? Is there any privacy concerns as part of their marketplace?
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Depends if this app allows for CASH buys/sells or not. I sure hope so, but it was not made clear in this article.
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Looking at how governments are cracking down on cryptocurrencies, P2P exchange projects like these are a blessing. Ideally we would be able to spend cryptocurrency to directly purchase things. We must strive towards that. P2P exchanges are a good intermediary step.
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It will definitely provide another means for accessibility and help more people into the sector
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So is this only though banks or other online exchanges, or can you do physical CASH in person too? If you cant do cash in person than this is a huge disappointment. Online accounts only for payments is basically scam city: the risk of someone paying you via an online account for crypto is 100x higher chance of being scammed vs the having to physically hand you cash in a public place. It is trivially easy to scam with paypal via chargeback, or a stolen bank account, they literally sell stolen accounts for $5-10 on the darknet.
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It's sounds interesting. Similar to how ebay operates, you get ratings based on your feedback and reputation. So basics it's a matter of trust. A while ago I commented on your posts about Skippy token . I just wondering if it's possible to buy the token on pancake swap?. In fact I shall check up on this, I'm sure I read about it somewhere !