Tuesday, December 17, 2013

LocalBitcoins Coupons - The Most Hassle-Free Way of Distributing Bitcoins to the People

We have introduced a new feature to LocalBitcoins, redeemable coupons. These are great for selling bitcoins with cash to your friends, or even for larger audience. Why do these coupons rock? Reasons below:
  • Denominated in local currency, such as EUR, USD, CNY etc. The amount of BTC is determined at the time of redeem. No need for calculations at the time of trade. The rate can be examined at charts.localbitcoins.com - however seller premium might be added on top of that.
  • Buyer doesn't need internet connection at the spot. Coupon can be redeemed at home/internet cafe or easily with a smartphone. SMS redeem option coming.
  • Approved LocalBitcoins traders can create, resell & redistribute the coupons (application form). The coupons are issued by invidual traders.
The redeem rate is tied up to localbitcoins_sell variable, which accounts for 24 hour market volatility. This makes it safe for the seller, but also fair for the buyer. The seller can specify premium on top of the rate, which is simple percentual fee.

The buyer can verify the validity and rate of the coupon using the verify QR code or address, and redeem the coupon using the redeem QR code or address. Redeeming can be done by just typing LocalBitcoins username, without logging in.

Also necessary customer identification can be done on the spot when coupon is sold, so that the customer doesn't need to upload any documents etc online. This makes the risk of security issues and identity theft smaller.

The traders who have a pro trader badge can already issue coupons. For others, there is an application form.



We really believe this feature can change the Bitcoin sales on areas where smartphones are not that common yet, and where internet connectivity might be lacking. Happy trading!

4 comments:

  1. This comment has been removed by a blog administrator.

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  2. Great website you bonk. Do you already acquire Bitcoins? I would advocate to formalize up at who-accepts-bitcoins.com. They faculty generate the interchange you poverty as their database is oftentimes searched by bitcoin spenders. It's disentangled tho'!

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  3. How do you prevent the seller from redeeming the coupon before the buyer does?

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    Replies
    1. There is no way for that. The coupons aren't trustless, they require the buyer to trust the seller. In that sense the coupon is just a convenience. It is made to minimize the hassle of buy/sell process. No need to do about anything for the seller, and no need to have wallet etc for the buyer.

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