Scalability solution for Bitcoin allowing instant payments with minimal fees, the Lightning Network also facilitates the development of innovative solutions. It is in this context that the RoboSats application was developed: a system that uses the Lightning Network to enable the buying and selling of bitcoins in a decentralized and secure way.
The growing distrust of centralized exchanges is pushing users to seek alternative solutions to obtain cryptocurrencies. Unfortunately, the recent shutdown of LocalBitcoins left many of them confused. Fortunately, there are other possibilities, including the choice of decentralized exchange systems without KYC.
We had already presented one of them, BISQ, which allows to buy and sell bitcoins (BTC) onchain without any KYC. This is thanks to a system of contact and dispute resolution. Well, RoboSats is a similar system but works on the Lightning Network.
Principles of operation of RoboSats
To ensure the maximum level of privacy protection, RoboSats comes as a web application that uses the Onion protocol. It will therefore be necessary to use an Onion-compatible web browser. For this, Brave will do just fine.
The application is accessible at this address: http://robosats6tkf3eva7x2voqso3a5wcorsnw34jveyxfqi2fu7oyheasid.onion/
The designers of RoboSats have provided for the case of users who do not have the appropriate tools and offer a unsecured version but with certain sensitive functions disabled, such as chat. The designers of RoboSats therefore do not recommend its use. You can also use an address allowing an automatic redirect depending on the configuration. And there is also a testnet to test the functionality of the app without using real funds.
There online documentation explains how RoboSats works, which is still quite simple to use.
On connection, the application offers the generation of a token (or robot) which will be linked to a unique avatar and nickname. Care must be taken to save it carefully and securely throughout the transaction. A problem well known to cryptocurrency users… Especially since the browser will forget the token as soon as the page is closed. This system makes it possible to dispense with KYC for the use of the platform. On the other hand, it is highly recommended to generate a new random bot after each trade to improve your privacy. Bot reuse can indeed expose end-user information since multiple commands can be tied to a single avatar.
Once identified, one can respond to offers to buy and sell bitcoins on a peer-to-peer basis. Different local payment methods are available, depending on the location chosen. For Europe, we have instant Sepa transfers, Wise, Paypal and Revolut. You can also use Strike or offer exchanges in other cryptocurrencies. Or swap BTC for BTC OnChain, RBTC, LBTC or WBTC.
Of course, you can create your own buy and sell orders.
Transactions, cancellations and disputes
To initiate a transaction, you must block 3% of the funds as a buyer and 1% as a seller. They who will be lost if one tries to cheat or cancel a transaction unilaterally.
To provide more security, the mechanism is based on the functionality of blocked invoices offered by the Lightning Network.
This will lock the funds into the wallet. Which can sometimes, depending on the case, appear as a payment in transit, frozen or even in error. It is therefore preferable to have a compatible lightning wallet with RoboSats.
Once the transaction has been completed, you must send the partner your bank or transfer details to exchange the FIATs, via a dedicated chat channel.
If ultimately the transaction cannot be completed, a collaborative cancellation can be performed. As a last resort, one can open a dispute which will be handled by RoboSats staff.
In the end, we have a simple and fast application to buy bitcoins. Decentralized, without KYC, easy to use, RoboSats is an alternative of choice in the range of solutions for exchanging bitcoins.
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