Friday, February 13, 2015

Thin wallets with Electrum

Electrum ( is an open-source, light-weight Bitcoin client, available on Windows, Linux, OSX and Android. This post aims to give the reader a quick introduction to its usage and features.

Full-node Bitcoin clients, like the official Bitcoin Core client, maintain a copy of the whole blockchain on the machine the client is installed on. By contrast, light-weight clients such as Electrum rely on a server to provide the transaction history for a wallet and to broadcast new transactions to the bitcoin network. This means that the client can skip downloading and synchronizing the whole blockchain (over 28GB at the time of writing), resulting in virtually no startup time and much, much lower space requirements.

To begin using Electrum, download the program from On first use, you’re prompted to either create a new Bitcoin wallet, restore an existing one from a seed or create a read-only copy of an existing one.

Choosing “create a new wallet” automatically generates a wallet from random data, and gives you a seed that can be used to restore the wallet in case of computer error. Write down the seed and store it in a safe place!

Electrum supports encrypting the private keys associated with a wallet using the AES-256-CBC algorithm. Create a password for the wallet if you wish to do so!

In the next step, you’re asked to either auto-connect to an Electrum server or to pick one yourself. Either choice should be fine, as the only place where the client has to trust the server is providing the transaction history. The server has no knowledge of the client’s private keys, so there’s no risk of a malicious server stealing a client’s bitcoins, though it theoretically possible (if unlikely) for the server to provide an incorrect history of previous transactions for the client.
As of 2015, LocalBitcoins hosts an Electrum server,, which is available using the SSL (port 50002) or TCP (port 50001) protocols.

After connecting to the server, you should get a window with your transaction history (empty in case of a new wallet) and a green light in the bottom-right corner. In case the light is red or the top-left corner reads “not connected”, click the light button and select another server.

And you’re all set go! Other features of Electrum include supporting multiple receiving addresses per wallet, synchronization between different computers and cold storage support. For a full list, and more details about the software, see

Wednesday, September 17, 2014

Marketing Guru? Earn BTC With the LocalBitcoins Affiliate Program!

We just improved LocalBitcoins Affiliate Program a little bit. Now you can get a CSV, which includes information about your converted users. Also a short list of your latest converted visits are included on the affiliate page. Using this info, you can improve your targeting.

Next we plan to implement a tracking pixel for the affiliate program. If you have ideas or feedback related to the affiliate program, comment below!

Monday, September 8, 2014

Accept bitcoin - send invoices, get paid in bitcoin

You can now use LocalBitcoins to accept bitcoins and send bitcoin invoices to your customers. LocalBitcoins has opened Merchant tools section on the site where you can send and manage  invoices.

The invoiced amount to pay can be denominated in any currency. When the recipient opens the invoice, the price is converted to bitcoins using the current exchange rate.

Each invoice has a unique bitcoin address as the payment reference. The payment can be made with any bitcoin wallet, including QR code compatible mobile wallets.

Tuesday, September 2, 2014

Easier reporting of suspicious user activity

LocalBitcoins site has now a new user reporting feature. You can find the user reporting link from the public user profile page. The new feature makes it easier to report suspicious users, though this option has been always available through the support ticket system.

LocalBitcoins support team checks the reported users and may take necessary action to suspend the user account if there is evidence of breaking the site rules and good trade etiquette. Potential reasons to report a user may include
  • Fraudulent activity
  • Violating LocalBitcoins terms of service
  • Misleading information
  • Abuse

Monday, August 25, 2014

Buying and Selling Steam, Amazon, Apple etc Gift Cards on

Gift cards are a nice way to buy stuff froom your favourite store, which doesn't accept bitcoin yet. There has been some gift card trading on LocalBitcoins, but now we have added couple of new features which should make gift card trading much easier.
Contacters can select the amount with dropdown.

Several Gift Card types have been added, you can also select the generic option and name your own.

Type the nominations as comma-separated list.

Remember to add "Track liquidity" to remove your sellable amount automatically as orders roll in.

Questions, comments, suggestions? Happy trading!

Monday, August 11, 2014

LocalBitcoins ATM:s comes out of the oven and goes on the tour

It has been a long time since there have been any news regarding our ATM project which aims to provide automatization for converting cash to bitcoins and vice versa. Another perks of the Localbitcoins ATM:s are the moderate price and the fact that the device works completely offline. ATM:s are integrated to Localbitcoins website, and the actual bitcoin trade happens on; the ATM only takes care about the fiat handling.

There have been two beta versions of these ATM:s in real life testing at the center of Helsinki, Finland. One of them is in a bitcoin accepting restaurant and another one in 24h kiosk. So far there haven't been any major problems, and minor ones have been carved out during the testing process. If you are visiting Helsinki, you can find those ATM:s from here, and here.

Expect to see more of these ATM:s soon, since we are getting our first production batch out soon, and we are putting one of them on the bitcoin tour, held by Finnish bitcoin company They will be driving around Finnish archipelago and testing how well Localbitcoins bitcoin ATM performs on the road.

Eventually you will be able to purchase these ATM:s directly from Localbitcoins website. The price of the ATM's is 1500 eur + VAT and shipping costs.

Specifications of the ATM

Buying process: Buyer feeds banknotes to the machine, and gets a secret code in return. The code is used to claim the corresponding amount of bitcoins to your account. The exchange rate is defined at the moment the code is used.

Selling process: Seller logs in to his/her localbitcoins account, and goes to the URL of the ATM he/she aims to use for withdrawal. The seller selects the amount he/she wants to withdraw from a dropdown menu. After selecting the withdrawal amount, corresponding amount of bitcoins are reduced from the seller's localbitcoins wallet and the user will receive a code, which is given to the ATM through the keyboard. After the code has been inserted, the ATM will give corresponding amount of notes to the customer.

Capacity: Capacity: note recycling unit can hold 30 bills and cash box 300 bills.

Accepted bills: All banknotes where the size is inside of the range (width) 60-82 millimeters, and (length) 115-150 millimeters. The device can accept 6 different kind of bills from the selected currency. The device can be programmed to handle almost any known currency, but only one can be used at the time.

Size(w/h/d): 318 x 340 x 264 millimeters

Display: 87.3 x 41.8 mm one color lcd display

Weight: 15 kg

Tuesday, August 5, 2014

Bitcoin Payment Debuted on Physical Stores in Shenzhen, China

Since August of this year, stores accepting bitcoin payment have been emerging in Kexing Science & Technology Park, Shenzhen, where is full of Internet companies. These stores are mainly restaurant. In China, the central bank stated that bitcoin is not currency, but admitted that trading with bitcoin is legal. Although China is one of the biggest markets for bitcoin trade, its bitcoin payment market is still on infancy stage.

Stores: Currently bitcoin payment volume is still small

On the Yuanwei street of Kexing Science & Technology Park, several restaurants have accepted bitcoin as payment. Since the business is just started, cashiers are not familiar with the payment process yet. For example,  'Accept Bitcoin' label has been put on the front door of Cafe de Flore. However, when customers ask if they can pay with bitcoin, cashiers are still muddle-headed. They need time to skilfully process bitcoin payment.

As to Maggies's Club, another bar on the same street, the cashier clearly expressed that they accept bitcoin payment, but customers need download a third bitcoin payment platform, 'Btct' App. Customers transfer bitcoin to their Btct account to finish payment, which is like Paypal in Bitcoin world.

The CEO said she likes the convenience of third payment platform, which has no big difference from Group-Buying platform. Launching bitcoin payment for her bar is icing on the cake, and at least can attract btcer to expand customer pool, even though currently the volume is still very small.

Payment Platform: Still on user development stage

In December of last year, the statement of Central Bank of China has emphasised that bitcoin is not real currency, and forbidden financial institutions and payment institutions to price products or services with bitcoin, but admitted the legitimacy of trading bitcoin, which made bitcoin purely an investment product in China. After experiencing ups and downs, bitcoin price is stabilising between 3589.00 ~ 3634.92 CNY. Bitcoin payment in physical store is still rare. Some bitcoin insider claimed that currently the number of physical stores accepting bitcoin in China is less than 30.

As a third payment platform for promoting bitcoin, the main purpose of Btct is to change the atmosphere of bitcoin speculation in China to the original nature of bitcoin as a payment method. One of the co-founders of Btct said although the number of physical stores accepting bitcoin is still small, Shenzen where has strong Internet cogitation has advantages to promote bitcoin payment. Moreover, Btct provides CNY exchange, which shares the risk of bitcoin fluctuation.