Hodl Hodl wants to make Bitcoin exchanges private for BlueWallet users

While crypto space has moved far beyond its cypherpunk origins, some platforms are still determined to allow users to keep their transactions private.

BlueWallet, an unattended mobile crypto wallet for iOS and Android, is integrating with Hodl Hodl, a peer-to-peer exchange, to add private bitcoin (BTC) exchanges on the app.

Now, users of the portfolio can view the orders available on the exchange, but in a few months "it will be a complete integration," said BlueWallet co-founder Igor Korsakov.

Once the job is complete, investors using BlueWallet will be able to buy and sell bitcoins directly with other users through the app. “They will have a non-custodial portfolio, with non-custodial transactions. No one else in the bitcoin space has done it yet, "said Max Keidun, CEO of Hodl Hodl.

No checking

Hodl Hodl is a peer-to-peer exchange that in principle does not carry out know-your-customer (KYC) checks. That's because the team doesn't believe providing identification is useful for bitcoiners – on the contrary, it makes their personal data subject to potential hacks and attacks, say the founders.

"We chose Hodl Hodl because it is the only peer-to-peer market that is not doing KYC and will continue not to," said Korsakov of BlueWallet. "This will be very important in the upcoming battle for privacy in the bitcoin world."

That "battle" is between the proponents of pseudonymous private transactions and the more numerous pro – KYC / anti – money laundering (AML) companies that choose to comply with the requirements of global financial guarantors such as the Financial Action Task Force.

BlueWallet is firmly positioned in the first group. ”In 2020, this battle will be in full swing, as regulators are pushing more and more and exchanges are delivering their users' data, introducing KYC, working with blockchain analytics companies and rejecting the coins from suspicious transactions, ”Korsakov said. This damages the fungibility of bitcoin and destroys the presumption of innocence for users, he believes.

Hodl Hodl is currently serving around 25,000 users worldwide, according to Keidun. The market recently joined a number of other exchanges using Blockstream's liquid sidechain for faster transactions.

Switching to a mobile app

To exchange bitcoins on Hodl Hodl, a user must find a counterparty and create a two out of three multi-signature commitment (which provides a key for both parties on the market, with a third held by the exchange).

The seller blocks bitcoins and releases it once he sees that the buyer has sent a payment in fiat currency through an agreed method. In the event of a conflict, the third key can resolve the dispute and free up the funds.

"Since we don't store users' funds, creating a standalone mobile app wouldn't make sense. As in this case, we should also create a portfolio and take care of the funds. So we chose to partner with existing portfolios, "said Keidun. Hodl Hodl is in talks with other portfolios but could not reveal any names.