LZF

From Bitcoin Wiki
Jump to: navigation, search
LZF
Lzf.png
IndustryFiat exchange
FoundedDecember 15, 2013
HeadquartersSanta Fe, New Mexico, U.S.A.
Founder(s)Daniel Pusateri and Andrew Tepper
ParentLaissez Faire Financial, LLC
Trading pairsUSD/BTC
BTC/NXT
BTC/DASH
BTC/LTC
BTC/PPC
NXT/DASH
NXT/LTC
Websitehttps://LZF.com

LZF, short for Laissez Faire, is the only correctly incentivized exchange of any kind. LZF uses a uniquely designed algorithm to encourage "healthy" behavior among traders in a market by awarding limit orders with royalties relative to their participation in helping produce a deep, dense, and stable market.

LZF was the first and is currently the only U.S.-based Bitcoin exchange to legally operate fiat markets in 49 U.S. States (everywhere but NY).[1]

Traders in LZF markets are automatically compensated for placing orders for as many units of currency as they can, as close to the bid-ask-spread as they dare, for having those orders sit there for a long time accumulating royalties, and then eventually having their orders trade.

As a result of the LZF incentive algorithm, all of the bids and asks you will see on the LZF markets are very likely to remain there. It's not an illusion of stability, as traders have come to experience many times in traditional markets. It's actual stability.

Incentivized trading explanatory video

LZF incentivized trading explanatory video

Features

  • LZF was the first and is currently the only U.S.-based Bitcoin exchange to legally operate fiat markets in 49 States (and internationally)
  • Only markets in the world with mathematically-correct incentivized markets
  • Limit orders accumulate royalties for simply participating in the market
  • Traders are incentivized to produce deep, dense, and stable markets
  • Trade 24/7
  • Trading engine can process about 500,000 new orders per second (an incredible engineering feat considering the LZF incentivized engine must process royalties for every existing order every time a new order is placed)
  • Quite-likely the most advanced wallet security in the entire Bitcoin and crypto-currency industry
  • Only 0.25% trading fee
  • Send/request funds in all supported currencies
  • US-based and fully regulated
  • FDIC insurance on all USD deposits up to $250,000 / the remainder of funds are insured via a carefully structured repurchase agreement
  • Fastest USD withdrawals (15-minutes to bank account via automated Wire transfer)
  • Free ACH deposits/withdrawals (withdrawals are next-day, deposits credit on third business day)
  • 15-minute wire transfer deposits and withdrawals both domestically and internationally (wires are free to deposit, $2 to withdraw domestically, and $50 to withdraw internationally)

Availability

LZF is available to customers in every U.S. State except for New York.[2] LZF is also available internationally (with a few exceptions including countries that the U.S. has established embargoed goods and services with).

Markets/Currency pairs

LZF currently has the following correctly incentivized markets:

  • USD - Bitcoin
  • Bitcoin - Nxt
  • Bitcoin - Dash
  • Bitcoin - Litecoin
  • Bitcoin - Peercoin
  • Nxt - Darkcoin
  • Nxt - Litecoin

Coming soon:

  • USD - Euro
  • Euro - Bitcoin

Wallet

LZF has a powerful online wallet built on top of what likely the most advanced security infrastructure design of any crypto currency wallet or exchange online to date.

Security

LZF has taken extreme, obsessive-compulsive measures to secure the crypto-currency funds which its servers control. The private keys which control the majority of all funds deposited to LZF are encrypted and stored offline in bank vaults at various undisclosed locations. For online funds, LZF sought the expertise of cryptographers and decorated cybersecurity experts to design and engineer what is likely the first online wallet which has all of the following properties:

  • LZF servers store no private keys unencrypted
  • LZF servers store no decryption keys unencrypted
  • LZF servers store no decryption key decryption keys
  • A private key only exists in memory at the time a transaction is signed, then is promptly overwritten
  • The unique data necessary to cryptographically arrive at a private key only exists in memory at the time a transaction is signed, then is promptly overwritten
  • No more than one private key exists in memory at a time, per-internal node
  • No more than one unique vector of data necessary to cryptographically arrive at a private key exists in memory at a time, per-internal node
  • The time a private key exists in memory can only be measured in microseconds
  • The operating system itself protects access controls, in such a way that there is only exactly one possible way funds can be sent within the checks and balances of LZF's overall system
  • Not even LZF personnel at the highest level are able to manually access unencrypted private keys in any way, even if they have root access to LZF servers
  • Even if all of the LZF servers were physically stolen at any time, it would be computationally impractical for a bad actor to recreate even a single private key with the data stored on them

LZF has been featured in crypto news due to the number of white hat hacker attempts it has had against it.[3]

History

LZF (formerly PS Coin) was founded in December, 2013, based on a concept conceived by Andrew Tepper in 2011.

LZF spent more than a year in development before ever publicly announcing itself and opening its doors to alpha testers in February 2015.

During May of 2015, LZF ("PS Coin" at the time) acquired LZF.com for $20,000 USD in equity and officially became known as LZF (short for Laissez Faire).[4]

On September 9th, 2015, LZF services became publicly available and LZF acquired the title for being the first U.S.-based Bitcoin exchange to legally open fiat markets in 49 U.S. States (and internationally).[5]

See Also

External Links

  • LZF exchange online web application

References

  1. CCN Article Breaks News of LZF Becoming First U.S.-Based Exchange to Operate Legally in 49 States
  2. CCN Article Reports that LZF Does Not Service New York Due to the State's BitLicense Requirement
  3. CCN Article Reports on PS Coin (now "LZF") Security Bounty Attempts Spiking
  4. Cointelegraph Article Reports on PS Coin Rebranding to Become LZF
  5. CCN Article Breaks News of LZF Becoming First U.S.-Based Exchange to Operate Legally in 49 States