Spanish cryptocurrency startup Coinffeine has demonstrated a trial version of its upcoming peer-to-peer (p2p) bitcoin exchange platform.
The distributed and open-source exchange will allow users to buy and sell bitcoins anonymously without having to depend on a centralised entity.
Coinffeine describes the protocol as "pioneering" and says it will allow banks and other financial institutions to offer cryptocurrency services with "all legal guarantees".
The application has been "more than a year in the making" the firm says, adding that it has received support from the bitcoin community, as well as the banking and FinTech sectors.
CEO Alberto Gómez, who presented the product at the demo event in Madrid, said Coinffeine is sure the software will make a big impact on the global bitcoin ecosystem.
"Coinffeine is a technology that serves as a perfect framework where banks can meet the future world of finance brought on by the cryptocurrencies."
First live demo
During the session, Álvaro Polo, co-founder of Coinffeine, executed a purchase of 0.5 BTC via the platform, while Sebastian Ortega (also a co-founder) explained the theoretical and technical basis of the protocol, which is based on 'game theory'.
The exchange protocol uses a distributed contract concept known as a 'micropayment channel'. Deposits provided by the two participating parties are used to ensure fairness and incentivise them to complete the transaction.
Event attendees were presented with codes allowing them to install the trial version of the application. This will allow them to take part in the testing stage prior to the official beta launch, which is slated for early 2015.
Back in May, the company's chief technology officer and co-founder Ximo Guanter told CoinDesk that the company's ultimate goal was to create a trustless, truly peer-to-peer exchange platform not unlike file-sharing platform BitTorrent.
Gomez pointed out that the new technology provides banks with an opportunity to enter the cryptocurrency space while avoiding the vulnerability inherent in centralized exchanges.
Just last month, Spanish bank Bankinter made an investment in Coinffeine through its innovation foundation.
Images via Coinffeine