As MtGox Implodes, Mastercoin to Launch "Decentralized" Trading

Mastercoin has just announced the release alpha version of its new Mastercoin wallets.

One can now test-trade small quantities of bitcoins with "test Mastercoins", which can be obtained from the "Mastercoin Faucet", until the full release on March 15.

The concept of decentralized trading is such that no third party entities have to be trusted with your deposit. There are no logins, accounts or any sort of exchange operations. Using the Mastercoin protocol, transaction history and account balances are stored on the "decentralized" Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term. You maintain sole access to your private keys. In their newsletter, they explain:

"Trading Bitcoins and other virtual currencies can be dangerous if you have to choose to trust partners in far off lands; case in point is the very fresh drama enveloping . Keep in mind that Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term is designed to let anyone send bitcoins without the need to trust third-parties."

On their website, they are also announcing the ability to "create your own virtual currencies and trade those in a decentralized manner on your favorite exchange partners's website" in late Spring 2014.