Coinst has launched its beta version of an “eBay-like” review service for assets traded via decentralized exchange.
Currently, Nxt and Ripple are covered, with Mastercoin, Counterparty, Colored Coins, Codius and Stellar coming soon.
While such coins can function as an effective p2p ledger of traded assets, there is no way of enforcing their real-world settlement. So trust becomes a major factor. Like in traditional e-commerce, a counterparty review service helps overcome the trust barrier. This becomes especially important now that legal assets like fiat are moved over these networks.
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Other solutions to the challenge have been envisioned. One involves the classification of counterparties into those with established trust levels, such as large, reputable companies, and those without. With Coinst’s solution, every user has a calculated rating compiled from counterparty experiences. Said John Whelan, Coinist’s founder and CEO:
“We’ve reached the point where anyone now has the ability to issue an asset on Ripple or Nxt or Counterparty, and as you can imagine, there is a wide variation in the asset quality. While a user can be fairly secure when holding US dollar assets or Bitcoin assets that have been issued into the network by firms such as Bitstamp, people will need to do some due diligence when holding assets which have been issued by lesser known—or in some cases, unknown—entities. That’s why we decided to build Coinist.”
Also launched is a review and ranking of the top 40 cryptocurrencies as ranked by market cap.
Coinst is backed by San Francisco-based CrossCoin Ventures.