BitHalo has announced version 2.1 of its decentralised escrow, payments and trade service, which was originally launched just for blackcoin, but added bitcoin in mid-2014. The service can now do instant bitcoin transfers via email, making it a new contender against PayPal and Western Union for money transfers.
According to David Zimbeck the developer of Bithalo says that smart contracts have long been in the pipeline for the bitcoin blockchain, using the peer-to-peer system for agreements with no third party required. This is looking to be popular for almost everything you could imagine, from marriages, mortgages, voting and any other legally-binding activity or agreement you could possibly dream up. The technology is being developed as we speak for the adjunct of trigger events (such as a death) that cause a certain action of the contract, with one smart contract, for example, self-destructing under certain conditions.
David Zimbeck believes that BitHalo allows two or more parties to create a binding agreement, peer-to-peer, without having to pay or trust a third party. This solves enforcement for most types of contracts with both parties sharing the risk, with the benefit of the software being that it more or less alleviates the risks of theft and fraud and permits the unthinkable – trust with a stranger.
BitHalo has a new feature that allows safe peer-to-peer payments using email and bitcoin or blackcoin. This adds a valuable service to the contracts side of thing: agree on something, and if money must change hands, this can occur seamlessly and instantly.
So how does it work?
The pay-to-email transaction is initiated by both parties agreeing on a password, with the sender then initiating an offer via email. The receiver opens the email with download instructions, with the download being the BitHalo client, already set up to correspond with the sender’s email address, and enters the password. The receiver then enters the correct password, and the payment goes through immediately.
David Zimbeck ensures that there is no waiting, no large fees, and no third party – just direct money transfer from bitcoin account to bitcoin account. The receiver doesn’t even need to have a bitcoin wallet, making this solution useful to those unfamiliar with digital currencies.
BitHalo can also be used for safe trading with bartering for goods or services, and micro-trading in digital currencies, and escrow-free property transactions.