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Read the description on their github. There is no need for exchanges as a central component. People who want goods or services essentially issue IOU's for bitcoins to the seller. Which is why you only deal with trusted people (either people you know or people who have acquired a reputation). Those IOU's can then change hands (but not on a fractional reserve basis).



> Which is why you only deal with trusted people

Which makes it far less useful than a conventional exchange.


Just in case you can explain it quickly. What happens if the people you know and trust let your down? (It that's a phrase)

The one who is last is holding the IOU is gonna support the loss ?


Why not just exchange IOUs of dollars?




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