BitHalo: Smart Contracts Without The Block Chain Bloat

BitHalo allows two parties to engage in a broad variety of smart contracts without having to pay any fees or overhead costs.

CoinDesk spoke with developer David Zimbeck, who said that the open-source BitHalo works around several problems that keep smart contracts from being built on top of the bitcoin block chain.

The drive to solve these issues has lead to the creation of smart contract platforms like Counterparty and ClearingHouse, as well as the next-generation block chain project Ethereum.

BitHalo and its sister-client, BlackHalo, allow for the creation of secure multisig wallets that then form the basis for the platform's extensive smart contract applications.

BitHalo's design carries implications for both peer-to-peer and marketplace-style e-commerce, enabling buyers and sellers to exchange goods and services using secure, unbreakable contracts.

BitHalo gives parties who may not trust or even know each other the ability to engage in fair exchange without the risk of financial loss or fraud.

In order to enforce accountability between two parties that want to establish a contract, BitHalo requires proportional escrow deposits that act as a form of personal insurance.

Looking ahead. BitHalo is set for an expansive period that will see the completion of BlackHalo's public beta and the completed development of the BitHalo program.

Once finished, the application of smart contracts will be available to both bitcoin and blackcoin users.

Currently under active development and part of the BlackHalo beta, the decentralized exchange and trading platform gives users a marketplace for conducting contracts and doing business with new and existing parties.