Hodl Hodl is a unique cryptocurrency exchange since it does not collect customer identification information and does not hold any customer’s funds. Instead, Hodl Hodl creates a multi-sig Bitcoin transaction, where the buyer holds one key, the seller holds one key, and Hodl Hodl holds one of the keys. It takes two of three keys to unlock a transaction, and this acts as a cryptographically secure escrow for peer to peer deals. Hodl Hodl steps in and uses their key in case of disputes.
So far Hodl Hodl has not faced any regulatory pressure since zero funds are actually held by Hodl Hodl. However, Hodl Hodl foresees that regulars may become more desperate to stop Bitcoin exchange activity in the future, and in such a scenario the domain for Hodl Hodl could get blocked.
In order to prevent this Hodl Hodl plans on becoming open source within the next year. Once Hodl Hodl is open source, even if the domain is shutdown by regulators, any developer could then go to GitHub and fork Hodl Hodl’s code. Essentially, this move will make Hodl Hodl more decentralized, and prevent regulators from destroying the peer to peer exchange technology that Hodl Hodl has developed.
Image Courtesy: Pixabay
The post Hodl Hodl Exchange to Become Open Source to Circumvent Future Regulatory Crackdowns appeared first on BitcoinNews.com.
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