BitBonds INTRODUCTION Bitcoin popularity, AltCoins coming as well, people have the need to exchange, current solutions are

just centralized exchanges, single point of failure and a trust problem as you have to trust the operator, and the solution is a decentralized exchange. Ease of use is quickly making Bitcoin and other virtual currencies increasingly popular. At the end of August 2013, the value of all Bitcoins was greater than $1.5 billion. At the end of January this year, there were 12 million Bitcoins in circulation worth $10 billion. A Bitcoin is currently worth about $800. Virtual currencies like Bitcoin have enormous potential because they are decentralized. That makes global transactions on the Internet fast and relatively cheap. It also means Bitcoins are untaxed and unregulated at the moment. Although decentralized exchanges are an incredible option for people who want to hold their Bitcoins on their own computer, there are still many security concerns with that proposal. THE NEED FOR DECENTRALIZED EXCHANGES Decentralized exchanges have been talked about in the Bitcoin space for years, and the reality that they are needed for the Bitcoin ecosystem to turn into a success has never been more obvious. Both NXT and Mastercoin are releasing their versions of decentralized exchanges over the next month or two, and there are a countless number of other projects, most notably Open Transactions, that will also provide solutions for people who wish to buy or sell Bitcoins in a decentralized manner. Whether its Open Transactions, Mastercoin, Ethereum, Colored Coins, Invictus Innovations, or any other project that gets the job done doesnt really matter. The point is that we are going to be able to exchange Bitcoins for other assets in a P2P manner, just like Bitcoin, in the near future. The main issue with buying and selling Bitcoins on a liquid exchange right now is that you need to trust a centralized third party. This goes against the entire point of Satoshis invention of the Bitcoin network. Bitcoin has allowed people to send funds directly to each other in a P2P manner, so there is no reason that the same concept cannot be applied when it comes to trading any other kind of asset. If we can trade Bitcoins in a P2P manner, then there is no reason that we cannot trade some other type of crypto-asset in the same way. Anyone in the world will soon be able to trade Bitcoins for euros, dollars, gold, Google stock, or anything else on a decentralized exchange. There will be no reason to use MtGox. In fact, there wouldnt really be a reason to use any other centralized exchange

BitBonds either. While most of the other exchanges are run by seemingly trustworthy individuals, theres no reason to trust someone when that trust is not necessary in the first place. Even if you feel like you could trust another individual with your life, not having to trust them at all is still a much better option. Although decentralized exchanges are an incredible option for people who want to hold their Bitcoins on their own computer, there are still many security concerns with that proposal. The reality is that most people dont know how to secure their own personal computers, and the revelations from Edward Snowden have continued to show that the NSA is working day and night to make truly secure and private data impossibility. OUR IDEA The answer to the problems of centralized Bitcoin exchanges is to use decentralized exchanges that take advantage of the decentralized nature of the Bitcoin protocol. The essential characteristic of a decentralized exchange is that bitcoins and government currency are exchanged directly person-to-person with the optional arbitration of a third party when disputes arise. Rather than a few centralized exchanges that a government can easily monitor and shut down for not following capital controls or chargeback rules, any two people wishing to exchange bitcoins for government money can do so directly with the right tools. Even the most totalitarian governments will find it difficult to effectively restrict citizens from privately exchanging small amounts of bitcoins for government money without creating rules that would stifle all types of informal economic activity. The future of Bitcoin will be shaped by the emerging protocols and tools that facilitate Bitcoin markets as decentralized as Bitcoin itself. That is where BitBonds comes into play. BitBonds is created by a donation-driven Bitcoin company, and we are right now working on a fully decentralized exchange. There are many distributed exchanges out there, but they lack of trading real crypto currencies, they just allow asset creation which we do not want to target. BitBonds can be exchanged, just like Bitcoins as well as other favorite crypto currencies, by anyone anywhere. This enables a decentralized, trustless form of asset management that uses a blockchain as both a ledger and transportation mechanism. With BitBonds, they can outsource the tracking and exchange to the efficient decentralized network. The issuer is only involved when issuing or recalling the coins; investors can then trade the coins

BitBonds between themselves without involving any 3rd party, which has implications for privacy, efficiency, and the kind of advanced transactions one can do. The greatest challenge is to mangle all the different blockchains together. We do it by introducing a "pseudo currency" called BitBonds which allows you to send or receive on any of these blockchains. You could sell your BTC for BitBonds and use the Bitbonds on the Litecoin Chain to purchase Litecoins. This way, you have traded BTC for LTC using BitBonds as a middle layer. In order to be safe, in case one crypto currency dies, all the transactions get recorded in the bitcoin blockchain for redundancy. IPO STYLE CHAPTER The best team and the fairest system of distribution are important factors that determine the success or failure of a cryptocurrency. BitBonds is something that people have been waiting for for a while. The distribution of BitBonds will be done in an IPO manner. There will be a fixed amount of X BitBonds, which are fairly distributed to people. People sending X BTC to a "burning address" are rewarded with Y BitBonds. BitBonds are not mined, proof-of-burn initializes balances in a fair, distributed and transparent way. BitBonds was created because it is a peer-to-peer financial market within the Bitcoin protocol and is a great addition to Bitcoin and crypto currencies in general.