Blockstream has announced the success of a “trustless” Bitcoin forward contract transaction with Crypto Garage. The Bitcoin infrastructure developer says the news marks a watershed moment in the actualization of decentralized trading and settlement infrastructure for BTC derivatives.
Details of the Transaction
In a blog post published by Blockstream on Friday (April 19, 2019), the company said it successfully carried out a peer-to-peer (P2P) Bitcoin forward contract with Crypto Garage.
Forward contracts (forwards) are private agreements between two entities – buyer and seller, that allows the purchase and sale of an asset based on an agreed-upon future set price. Unlike futures contracts, forwards do not require a third-party intermediary.
Both parties began the trade on Tuesday (April 9, 2019) with each participant declaring collateral of 0.16 BTC each. Based on the terms of the contract, which stipulated settlement within the hour after midnight on April 16, both parties concluded the contract at a price of $5,032.