The problem P2PX solves

Centralized P2P exchanges, like Binance P2P, are prone to regulation and have become hotbeds for scammers.

Scammers, who intend to move fraudulent INR, typically upload fake KYC documents to Binance P2P and buy USDT with fraudulent INR, thereby affecting the seller and their bank account (Bank accounts typically get frozen after executing the trade).

Alongside the trouble with fraud, centralized P2P exchanges are not non-custodial and are highly prone to regulation.

With P2PX, we are solving these problems with the following solutions:

Decentralized Reputation System: We are proposing an decentralised reputation system called "Proof-of-Credibility", which uses credibility scores, peer-to-peer on-chain ratings and reviews, Decentralized Identifiers (DIDs), and Verifiable Credentials (VCs) in the background to set transaction limits for each user on the platform. This helps to eliminate fraudulent users from conducting trades on the platform.

100% Decentralized and Non-Custodial: Being a 100% decentralized exchange built using smart contracts, the exchange is non-custodial and is not prone to regulation by centralized governments, thereby putting the power to trade back in the hands of the people.

Challenges we ran into

Technical challenges we encountered:

Setting up a React Native mobile app and integrating it with Ethers.js and crypto-related libraries proved challenging. Utilizing appropriate shims helped in this scenario.

Ensuring that, when an order is accepted or completed, the client app is able to consistently and reliably detect the changes 100% of the time presented a challenge. Subscriptions to socket events proved unreliable, so we resorted to polling.

Execution challenges we faced:

Our reputation system's effectiveness increases as it gains more traction, largely due to network effects. This presents a "chicken-and-egg" dilemma – the more users on the platform, the better the reputation system functions. To overcome this initial hurdle, we are seeding the platform with some trusted peers.