The blockchain’s block 360649 registered the first transaction carried out by two Coinffeine users with real money. Since last June 12th, a small group of users is testing the Beta version of Coinffeine, as prior step to its impending public release.
The transaction of 0.0549 BTC, verified at 21:47:13 last June 12th of 2015 recorded a Smart Contract between two users that has been created following the Coinffeine Protocol and it had enabled both parties to exchange fiat money by bitcoins in a decentralized manner.
For several weeks the Coinffeine’s development team will work closely with this small group of users to ensure that everything is ready for the Beta public release, in which users who choose so, will be able to start exchanging bitcoins and fiat money in a distributed and automatic way.
Coinffeine will operate in China and 69 more countries from day one
On the eve of the launch of the Beta version, we are pleased to announce that Coinffeine will be available from the first day in more than 70 countries. This is possible because Coinffeine uses local payment processors -companies as OKPay– to manage the fiat money, and the users will manage the bitcoins using the desktop application as a wallet. Coinffeine doesn’t require identification of the users, or to do a complex legal feasibility study for each of the countries where it will be operating, as our company does not manage money deposits or customer’s bitcoins.
The Coinffeine launch strategy aims to position our product in markets such as China, one of the countries where we will have presence from the day one, where traditional exchanges such as Coinbase or BitStamp cannot easily operate.
China proved to be one of the most active markets in late 2013, before the authorities banned the operations of Bitcoin exchange companies. Since then, Chinese authorities allow individuals to possess and exchange bitcoins particularly, but the operations of companies managing deposits of bitcoins (exchanges) are not allowed.
However, Coinffeine doesn’t accept bitcoin or fiat currency deposits and, even though the user experience is the same as with a traditional exchange, the exchanges are made P2P -among users- what it makes our product to fit perfectly into the Chinese market.
The data also shows that 20% of OkPay users come from China, so to try to differentiate ourselves in a market with almost no competition seems a good opportunity.
A replicable and scalable model
Being able to launch our product in more than 70 countries right from the start, simply is just a proof of the scalability of a model like Coinffeine.
Although we decided to start with those markets where there is a high potential and less competition, Coinffeine plans to integrate other payment processors like Dwolla or even PayPal at a very low development cost. Very soon we will be present in many more markets.
We are a start-up that wants to build a business model that is replicable and scalable. In Coinffeine we believe that taking advantage of P2P and decentralized technologies, such as Bitcoin, is the most natural way to achieve that.