OASIS – Atomic swaps crypto/euro

4 days ago on June 30, 2020

 By the end of the year you should be able to buy Bitcoins via a bank transfer, in about one minute, risk free and without KYC. That's what Team Nimiq promises with its OASIS technology.

OASIS?

The OASIS framework (Open Asset Swap Interaction Scheme) invented by Nimiq makes it possible to potentially carry out an atomic swap with any type of traditional asset. This framework, which is currently being developed, will be totally open, allowing everyone to use it since Team Nimiq has chosen not to patent it.

The first API (programming interface used by developers) based on this framework is being developed by the German bank TEN31. It will make it possible to lock euro funds in a HTLC (Hash Time Locked Contract) on the SEPA payment network.

This should therefore enable everyone to develop services that would allow to exchange between crypto and euro without risk nor KYC.

The implications for Bitcoin and cryptos in the broadest sense? The possibility for users to acquire BTC directly from their bank accounts or to allow merchants to accept Bitcoin at checkout and receive the equivalent in euros instantly in their bank accounts, all without going through a payment service provider.

Fastspot

For this purpose Team Nimiq is developing a service called Fastspot. To carry out atomic swaps, Fastspot acts as a market maker for cryptos, and makes use of TEN31's OASIS API for euros.

Fastspot is currently in private beta and we had the opportunity to test it to buy bitcoin. It took less than a minute, so the service seems live up to our expectations.

The current version only allows you to buy BTC or NIM with euros. In the future it would be possible to sell those cryptocurrencies as well. Other currencies might follow.

In concrete terms, this is how a transaction takes place:

  • Access the Fastspot website and choose to buy Bitcoin
  • Enter the amount as well as the Bitcoin address to receive the cryptocurrency
  • Wait a few seconds (the BTCs are locked in a HTLC) for the site to show the necessary information for the bank transfer
  • Make the SEPA Instant transfer
  • Wait a few seconds before the Bitcoin arrive on your wallet

Fastspot limitations

Fastspot seems perfect for anyone who wants to buy Bitcoin in a simple way, with very low fees, and without having to register and get checked on an exchange. However, there are some limitations at the moment:

  • The service will not require KYC up to 1000€ per month, beyond that it will be necessary to verify your identity.
  • The possibility that regulations will change in the future and that KYC will become compulsory from the first euro.
  • As Fastspot is hosted by Nimiq, you have to trust them not to store any data about your transaction.
  • As it currently stands, if TEN31 were to provide all of the transfers it has received under OASIS, an analysis of the data could potentially link your bank account to the associated Bitcoin transactions.

OASIS seems a great step forward in connecting the world of fiat money to cryptos, and definitely something interesting to watch.

Original article: https://bitcoin.fr/oasis-atomic-swaps-crypto-euro/


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