Bitcoin brokerage Walltime launched on Wednesday (01) the white paper of ‘Walltime Zero’, a decentralized asset trading platform without bitcoin custody.
According to the company, which has been operating in the Brazilian cryptocurrency market for four years, the new product aims to end insecurity in the custody of assets, what it called “cryptocustody risk”.
"The idea is to decentralize a part of the operation, which is the cryptocurrency part," said Felipe L. Bitcoin Portal this Thursday (02). The other part, which will not be decentralized, is the custody of Reais, which will be necessary to guarantee the transaction.
Bitcoin always in the customer's hand
According to the document, through Walltime Zero, the customer will receive his cryptocurrency directly from the seller in his wallet. "As it really should be," says the company on the website.
“Walltime Zero is defined by a‘ Blockchain observer ’who validates public transactions and performs certain actions if that transaction actually occurred,” says an excerpt from the white paper.
As the document details, the new platform is based on a concept called 'Output Oracle' and the assets will not pass through it.
In this way, the need to report the entry and exit of crypto assets can be eliminated, as determined by Normative Instruction 1,888 / 2019.
However, as the Revenue standard is quite comprehensive, the company says it is looking carefully.
"It's a matter of interpretation," said Felipe, about whether or not to report bitcoin transactions.
This, according to him, is because the IRS says that if there is a facilitation to provide buying and selling it should be reported to the agency, he explained.
Walltime bitcoin broker
According to Felipe, the team is already working on the new product and may launch it in the coming months.
However, it may take longer than planned, but the intention is to offer the service by the end of this year or in the beginning of 2021.
Felipe believes that in addition to solving the 'problem' of custody, the product also solves the centralization of bitcoin by exchanges, which can store thousands of bitcoins in a hot wallet.
“If an exchange starts to hold a lot of bitcoin, if it is insolvent, has less real bitcoin than it is saying it has, the market may think it has more bitcoin than it actually exists. This could in the short term affect the price of bitcoin, ”he explained to the report.
Another point about Walltime Zero, is that management also plans to expand the product. "Expanding the service to a generic oracle for smart contracts, integrating real-world actions with the digital world of automatic contracts", he concluded.