How Hodl Hodl Is Building a Real Business With Bitcoin Smart Contracts

In an industry where bitcoin has taken a backseat to networks like ethereum, at least when it comes to enabling more complex and exotic transactions, both founders behind the peer-to-peer exchange platform Hodl Hodl believe people are underestimating bitcoin's potential.

Unlike many of the new startups creating their own blockchains, Hodl Hodl is doing these complex transactions on the bitcoin blockchain, countering the narrative that bitcoin is only good as a store of value.

Hodl Hodl never touches bitcoin deposits or traditional fiat payments.

Unlike Coinbase, Hodl Hodl gives users their own private key.

By coupling compliance with decentralized security features, the Hodl Hodl team strives to show that bitcoin itself can also be leveraged for peer-to-peer business transactions.

First and foremost, Hodl Hodl's interest in bitcoin derives from its security.

Applying this exchange's smart contract to real estate first occurred to the Hodl Hodl team when a friend tried to sell her apartment to buy more bitcoin.

The team realized the a multisig process in Hodl Hodl's flagship business could also offer a more transparent escrow system for buying property with bitcoin.

Unlike the flagship exchange's pure P2P model, Househodl contracts will require a third cryptographic key held by a neutral third party, such as a lawyer, plus more paperwork and identification than online currency swaps on Hodl Hodl.

So Hodl Hodl allows private offers, which are only visible if the seller sends a direct link to the buyer, or vice versa.