How does a P2P Crypto Exchange Script Work?

A peer-to-peer (P2P) crypto exchange script utilizes smart contracts to facilitate direct crypto transactions between traders without a third-party custodian.

But how does this process flow exactly? Here is an overview:

1. Traders undergo KYC verification during sign-up on the P2P exchange for identity confirmation.
2. A prospective buyer creates a buy order request posting the qty and price for the crypto assets they wish to purchase. This matches them to prospective sellers.
3. The exchange’s matching engine algorithmically matches the buy request with sellers who have indicated intent to sell the specific crypto assets.
4. The buyer and shortlisted sellers review terms of trade like asset type, quantity, unit price etc. before confirming readiness to proceed.
5. Upon confirmation of an intention to trade by both parties, the seller’s crypto assets are locked by a smart contract while the buyer sends native currency payment.
6. After the buyer’s payment is confirmed, the smart contract automatically releases the agreed crypto assets from the seller directly into the buyer’s wallet.

This eliminates middlemen through peer-to-peer connectivity layered on top of a smart contract infrastructure for escrow and dispute resolution. The exchange script infrastructure handles matching counter-parties, provides chat interfaces and facilitates the listing and discovery of competitive peer offers.

With the deep analysis of the cryptocurrency market, Cryptocurrency Exchange Development Company steps into developing peer to peer cryptocurrency exchange that makes crypto business entrepreneurs with high revenue and less efforts.

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