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The Mycelium Bitcoin Wallet has a new feature available that will make the acquisition and sale of bitcoin a whole lot easier for existing users.
Dubbed Local Trader, the feature will allow bitcoin buyers and sellers who are local to each other to transact, similar to LocalBitcoins.com. Trades made are done person-to-person using cash and, well, bitcoin.
A seller using the feature can make “geographically pinned sell orders” where they can sell at a chosen exchange rate. Buyers can look for sellers geographically and/or scout for the best deals available nearby.
According to the announcement post on Reddit, “All trades use in-app end-to-end encrypted chat between the buyer and seller. Not even the Local Trader servers can read the contents.”
Once a price is negotiated, the buyer and seller can meet a chosen spot, and the transaction takes place. No escrow here, though. Funds are spent from the seller’s Mycelium wallet.
Using a “confidence graph”, Local Trader will “[display] the probability that the transaction that sends coins to the buyer’s wallet will get included in the next block.”
To achieve this, Mycelium servers track the transaction as it propagates through thousands of nodes, as well as check it for possible double-spends, transaction malleability, long chains of unconfirmed inputs, proper transaction fees, and other possible issues. With this, traders can exchange cash and be on their way, fairly confident that the transaction was legitimate, without having to wait 10 minutes for a confirmation.
A fee of 0.2 percent is applicable on both sides of the transaction to support the service.
The solution comes at a time when the bitcoin community remains wary of centralized exchanges, some of which have failed or simply run off with investor funds.
For more information on this, please follow this link.
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