Open Bazaar – decentralized Bitcoin marketplace
openbazaar.org
openbazaar.org
This website links to the current version of OpenBazaar, but we're just about to launch a completely new version, which you can read about here:
https://medium.com/openbazaarproject/openbazaar-2-0-p2p-trad...
The 2.0 is built with Go and uses IPFS. It's open source and we welcome any developers into the project:
As facilitators of this technology, do you have an opinion on how it should be used? Are you concerned that the primary use case might be to acquire drugs? And are there any controls in place to encourage or discourage certain types of items from being bought and sold on this platform, or is it a complete free-for-all?
We built OpenBazaar to be an agnostic protocol for trade online. It's like any other protocol in that it's neutral, and people can use it how they please. I don't like the idea of people using it for immoral things, but that's their decision.
I know linking to a reddit thread might be heresy here, but I talked about the more on our subreddit (I'm CC_EF_JTF):
https://www.reddit.com/r/OpenBazaar/comments/6oi2k0/rules_of...
https://www.reddit.com/r/OpenBazaar/comments/6oifak/is_it_po...
"Well if the devs want massive adoption and 2.0 is functional then getting it to work on tails in the next 3 months will get them that."
"If someone would post an eli18 walkthrough on how to config tails so that OB 2.0 will work when that comes out that'd be great."
https://www.reddit.com/r/OpenBazaar/comments/6opqii/i_read_s...
"It's actually about to enter the alpha testing phase. Tor is working with some manual steps. You can test out a week-old build here."
The situation appears to be that OpenBazaar has been used for a year for mostly legal trade due to the technical hurdles of using Open Bazaar with identity-hiding software like Tor and Tails. In fact, OpenBazaar does not work at all on Tails, though work is ongoing to promote this use case (https://www.reddit.com/r/OpenBazaar/comments/6oifak/is_it_po...) and a release with Tor support is scheduled for August.
In fact, most of the recent activity on the OpenBazaar subreddit has been questions about exactly that: sale of illegal substances. https://www.reddit.com/r/OpenBazaar/comments/6oigt2/so_i_hea...
It feels like Open Bazaar is poised to become the next Silk Road. The keystone to achieve that is Tor support plus a Tails walkthrough guide. Both of these seem to be on the verge of being released.
I just wanted to clarify for onlookers that the Open Bazaar team seems to be going into this with both eyes open.
Developing a protocol is one thing. Going out of your way to enable anonymity as a means of acquiring users is a very interesting tactic. It's doubly interesting to repeatedly claim that Open Bazaar was not developed as a darknet market and "may not work for that use case" while also accepting merge requests for Tor support and eventually providing binaries that will work on Tails.
According to https://news.ycombinator.com/item?id=14829076 OB has taken $4M of investment. Perhaps investors are pushing you to acquire users. The DarkNet market crowd is certainly a large target market. Or perhaps all of your intentions are as transparent as you claim, and you're innocently laying the foundation to become the next Silk Road -- an unstoppable decentralized market accountable to no one.
For what it's worth, there is a Forbes article that supports this claim: https://www.forbes.com/sites/thomasbrewster/2016/03/16/openb...
"Brian Hoffman, a former lead associate for cybersecurity at Edward Snowden's old employer Booz Allen Hamilton"
tor was developed by the US military initially, as well
How about you start focusing on what THEY are doing that is supposedly 'illegal', instead of relying upon insinuation and surveillance.
At the end of the day, the law/Constitution doesn't hold Tor developers accountable for what happens over Tor (nor should it), and I see the OpenBazaar developers being in exactly the same position. I don't think this discussion is even worth having. The case is settled from my point of view and such discussions only serve to cause FUD around the product.
It might be a decentralized replacement for Silk Road. But there won't be central servers to take down, or owners of such to arrest. I mean, Tor devs don't get busted, do they? So rather, I'd say that it could replace centralized dark markets.
I'm not sure what to make of that, but it seemed worth mentioning.
But yes, I'm sure that the code will be reviewed carefully.
> So it's a legitimate concern that this software will be some sort of honeypot to hack and monitor those ... who have a moral code that doesn't align with the federal government ...
Yes. And it's not just about the US. The US government is a serious threat for many non-Americans, and does pretty much whatever it likes on the Internet. There are effectively no rules, and no justice. Only the raw exercise of power.
> ... regardless of whether or not there's any proof they're doing anything wrong.
Well, who gets to decide what's wrong?
Things like iran-contras would probably be easier today (under many Panopticon watchers) with such tech available.
plausibly deniable communication
"deniable" marketplace
Since it's other people speculating and discussing how to integrate OB with Tails etc, shouldn't that more accurately be "indirectly facilitating (...)"?
You can question the ethics just the same, but it sounds like you're not, and already made up your mind.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2436643
Then there is Neil Franklin a Maryland police officer and director of the organization "Law Enforcement Against Prohibition"
https://www.youtube.com/watch?v=rc29nw4Si3Y
And his interview in the Deep Web documentary at minute 60 (it is in Netflix).
There are 3 mentions of the word "violence", one says that the typical internet drug dealer is typically less violent than their offline counterparts but this doesn't meant that gangs will just let others take away their income because the new dealer is dealing out of a living room instead of on the street. Silk Road was B2B, as the paper mentions. But those businesses still need to get their drugs to the end user which seemingly happens on the street.
So it's an assumption, not a proven fact.
That way, a registered nurse/healthcare official who has a job/career to lose if someone overdoses. Nothing is stopping a random dealer using a DNM from cutting a batch with fentanyl, and anonymity means they can fake reviews and hide it
It does mean that one of the benefits of using IPFS - the seeding of data - only works when there aren't frequent changes to a store. The idea is setting a store up and being able to go offline for a few days while others seed, then when you come back online and make changes, the new changes need to get re-seeded again.
Any change to the contents of your directory causes the root hash to change and the IPNS mapping is republished.
Mappings a numbered so when looking up a store via it's ID nodes will always use the most recent mapping they can find.
Republishing the IPNS root breaks the caching that accumulated on the root, but all objects inside the directory that haven't changed retain their caching.
https://github.com/OpenBazaar/openbazaar-desktop/releases/ta...
Edit: Note that this uses Testnet Bitcoin, not real bitcoin yet. Also, purchasing might not work since we're still making breaking changes somewhat often.
We're about to enter the alpha testing phase so if people want an invite let me know.
It says: "The vendor's server has rejected the purchase request. This may be due to a connection issue. Check your purchase data, such as quantity and Bitcoin refund address, to make sure it is valid. If it is valid, try again in a few seconds. Reason: vendor rejected contract". I've also gotten " Reason: unable to reach vendor"
Has anyone successfully bought anything recently?
Many of the problems we had with the current version are also alleviated with the 2.0 we are releasing soon.
Since using the software is painful (it's an Electron app after all), I gave up.
I think that has been the experience of everyone that actually tried it more than once
Is there a marketplace I can use to sell digital goods and receive BTC for automatically?
We don't have the automation nailed down quite yet so for now you still need to manually process orders.
I want to run a store like www.itch.io (DRM free games) that accepts BTC. I'm also interested in automating microtransactions for games.
An official statement from OpenBazaar devs would be good.
There's a reason all the piracy tools show things like Big Buck Bunny downloading, playing, etc. You may want the illegal uses to be present on the service - I don't blame them I like the anarchic feeling of it and the lack of regulation that is possible in the system, it's beautiful in a way - but you can't go around advertising it for law breaking purposes, condoning that kind of thing will just get you screwed too.
If you build a commerce platform on top of old infrastructure, you will be subject to old social and moral constraints. To build a truly free commerce platform you have to start from scratch.
The reason why many financial institutions don't accept Marijuana related clients is not because they don't want to its because they can't by law. In the USA, Marijuana is still illegal at a federal level. This is the same reason why you can't ship weed products in the post. State lines.
I have a client who's in the medical Marijuana industry so I have to deal with some issues relating to all of this.
Banks that don't cross state lines often do accept such customers (i.e credit unions).
To clarify OpenBazaar's "No Transaction Fees", it means there are no marketplace platform fees.
To compare with ebay, to sell an item for $500 and charge $20 for shipping ($520):
- eBay fee: ~10% of final bid value + 10% of any shipping charge added on = $52
- PayPal fee: 2.9% of payment = $15.08
The bitcoin network would eliminate the PayPal fees. (The bitcoin fees would still exist but presumably would be lower than 2.9%)
The OpenBazaar platform would eliminate the eBay platform fees.
Anybody have any idea what the main distinction [if any] would be here?
So I assume this case is mostly taken care of by insurance, not the platform fee? Or I guess that's what the platform fee is for?
I mean, less action is required in order to respond, and less work required in generating the agreement? Otherwise a new program, or a program built on a framework (eg. how smart contracts theoretically work) utilizing bitcoin would be required each time a sale agreement is made.
I'm probably confounding this, so I'll try again: a smart contract would offer a format to build upon for such a market and escrow agreements with less work than writing something from scratch?
I feel like I'm missing something, but it's late. I've been thinking about this concept for a little while and can't find holes besides what you've described, or engineering errors like the Parity exploit... but it still feels like I'm blind to something.
Are you talking about something else?
Potentially, but Bitcoin mining fees are currently sky high. I made a couple of purchases recently for about $60 worth of Bitcoin, and the mining fees ended up being about 3.5%. Of course, mining fees are pretty much unrelated to the size of the transfer, so for high dollar amounts the fee is negligible, but ends up being a huge amount for small $5-10-$20 purchases. Hopefully mining fees will go way down after "the great Bitcoin split" in a week or so.
You're right, bitcoin became expensive for small purchases, which is what the whole recent debacle was about. Hopefully Segwit2X fixes this, at least for a while.
It certainly has. Not sure what your knowledge is, but the main discussion re scalability in bitcoin recently has been about the activation of segregated witness (i.e. segwit)
There's still one hurdle to get over over the next few days called UESF (User Enforced Soft Fork) that miners have SAID they agree to. The method for this is a thing called BIP91, and it will orphan off blocks from other miners that don't signal they are ready for segwit. Segwit itself (BIP141) requires 95% of miners over the space of ~2000 blocks to signal segwit activation. BIP91 only builds on blocks that signal BIP141, which is how they get to 95%. Almost 100% of miners have already indicated that they will do this. It should start in a few hours?
The problem right now is that lots of people have said they're going to do something, but the question is whether the nodes that define and police consensus in bitcoin are capable of enforcing the BIP91 orphaning. It SHOULD go off without a hitch, but given bitcoin over the last six months, there are no guarantees. If all goes well, bip91 will start orphaning non bip141 blocks, the new ~2000 period of BIP141 activation testing will start, >95% of blocks will be BIP141, and segwit will activate in about three weeks. That will essentially allow bitcoin to double the transaction throughput.
2nd layer solutions and hard-forks sheduled for three months (that are never going to happen) are a discussion for another day.
Escrow is provided on a marketplace as well, anyone can act as an escrow agent.
Only if the escrow resolves a dispute. The escrow agent doesn't actually learn of the transaction if all goes well.
As to the rest of the questions, the arbitration is a bit ad hoc at the moment.
The vendor selects the escrow agent he's willing to use and offers that as part of a "bundle" with product.
If the buyer doesn't know the escrow agent or doesn't trust him then he should not buy.
Obviously, having reputable escrow agents will be critical and there currently isn't any good in-app way of evaluating the reputation of the escrow.
Currently people tend to bring their reputations in from other platforms and use other platforms to recommend trusted escrows.
If I understood the docs correctly, openbazaar 1.0 server is written in Python but since it's release the team has worked on V2 in Go.
I'd really appreciate learning the motivation for the migration to Go and think others may as well. Go programs are faster than Python programs but lo and behold is a viable v1 - a server whose performance may have been good enough?
Please, enlighten!
That plus the fact that the main IPFS codebase is written in Go were the main considerations.
onboardingModal.js:177 Uncaught TypeError: Cannot read property 'css' of undefined
Had to change line 177 to this so I can move forward:
var oldPos = 0//parseInt(this.accWin.css('left').replace("px", "")),
Look at the bar at the bottom
_Someone_ is paying the TX fees. Who? It can't be a single party, especially the developers, without betraying the decentralization.
> Pay with 50+ cryptocurrencies on OpenBazaar: Bitcoin, Ethereum, Litecoin, Zcash, Dash, etc. Seller receives payment in Bitcoin
How does this work without a middleman or central party?
Currency conversions are probably done using ShapeShift https://shapeshift.io/
And how would you propose they implement the system in such a way that Bitcoin miners are incentivised to include fee-less transactions?
In terms of fee structure, it is quite clearly an improvement over centralised marketplaces. OpenBazaar is not charging any fees.
I'm not sure how to solve the problem of Bitcoin transaction fees. Much, much smarter people than me haven't. But I'm also not promoting a Bitcoin service with "no transaction fees".
And I'm not sure I agree that this is an improvement over centralized markets. With those I can buy escrow and some amount of assurance I'm not being swindled by the platform itself, which the platform is on the hook for legally.
You can buy escrow on OpenBazaar too.
You can't really be swindled by the OpenBazaar platform. It's just open source code that you run yourself. There's no way for anybody to jump in and change the rules from underneath you.
From the Features page of the linked website that this is the comment section for.
aka the holy grail in crypto.
The feature is that it does not ADD fees to use the platform.
A PR for "Tor"
- Ads
- "premium features" for sellers
- "promoted" sellers
- Fees for those that want to be "Secure Escrow and Dispute Resolution" accounts
They founded a company, OB1, with a $1 million venture capital investment from Union Square Ventures and Andreessen Horowitz. [...] OB1 received a second round of investment for $3 million in the fall of 2016.
OK, so just to clarify, this is a for-profit project produced by a central party with no stated plan for monetization. That is IMHO dubious. Their website http://ob1.io/ includes a couple of hints as to how profits may be eventually sought: a search engine for Open Bazaar and a cloud based Open Bazaar store launching service. Then there is the fact a small cabal have probably premined all the easily obtainable coins (SYSPOOL, Give Me Coins, F2Pool), which means if the value goes up they profit handsomely.
Note that http://ob1.io/about.html lists some more investors: BlueYard Capital, Digital Currency Group and William Mougayar.
I'm not sure that's the case here, but "no obvious way to make money" isn't exclusionary when it comes to the VC funding model.
It's an open source, decentralised, peer-to-peer system. As long as the peers want to keep using it, they can keep using it.
Anybody who is interested can maintain it. If it has a large number of people actively using it to conduct business on a daily basis, somebody will maintain it. If it's big enough that lack of maintenance would be a problem, it won't be a problem.
For an early Bitcoin whale, a few million is negligible for a product that could bring crypto to the masses and dramatically increase the value of their crypto investment portfolio.
https://mubiz.com = another search engine, very small French company
OB1 has a plan for monetization (I'm a co-founder!) but OpenBazaar itself is designed as a neutral trade protocol and network that doesn't rely on OB1 at all, other than the majority of developer power is provided by the company at the moment.
Question a) How would you define that point, when investors want to sell their shares, regarding open bazaars development, number of users, annual turnover and market share?
Question b) How could the network generate those returns but by fees or some sort of future "Exit"?
Question c) What is your investors answer to the question "how big could it become?" (please don´t say "next amazon" - I am sure they would buy in before and close it down...)
* Host digital goods (like run a server, or issue an asset ID that can be redeemed on a bittorrent style network for the file download) * Receive payment > register an asset or return a download key to the account of the user who sent it.
I want automated digital good downloading, paying & receiving BTC. (Bitpay, Stripe etc pay in BTC but seller receives $Currency)
Also, dude, you're gonna get caught up by the feds so fast.
I bought something off OpenBazaar just to try it out, I paid the merchant directly and the item arrived promptly. It was a positive experience and I'd use it more if there was more stuff available that I wanted to buy.
Here's a (fairly old) blog post describing how escrow works in OpenBazaar:
https://blog.openbazaar.org/how-moderators-and-dispute-resol...
The project is opensource. If you feel there are features that you would like to have in it, I'm sure they will appreciate your input to the project.
> OpenBazaar costs nothing to download and use. There are no fees to list items, and no fees when an item is sold. Because the trade is p2p (peer to peer), it’s happening directly between buyers and sellers with no middleman to take a cut from each sale. It’s completely free e-commerce.
This is false. You can acquire cryptocurrency just as easily as you can acquire cash: sell things for it, exchange currency with friends, exchange currency with people you find on LocalBitcoins, steal it, run a business taking payment in it, ...
It gets harder if you're somewhere more rural, and many of the LocalBitcoins online traders (at least in the UK) require a lot of KYC information, but you should be able to find somebody if you look for long enough.
This is obviously untrue. Cash is ubiquitous throughout every corner of society, while cryptocurrency is extremely niche to the point of practical obscurity.
> sell things for it
The overwhelming majority of potential buyers will not have even heard of crypto.
> exchange currency with friends
Very few people have friends who dabble in cryptocurrency.
> exchange currency with people you find on LocalBitcoins
Risky, time-consuming and impractical, especially for someone that's only looking to buy some weed. Additionally, localbitcoins puts you back "in the streets", you're better off just exchanging cash for drugs in the streets rather than exchanging cash for crypto in the streets so you can go back online to buy the drugs.
> steal it, run a business taking payment in it, ...
That is absurd. You're not making a very convincing case.
Maybe if one implies that to "end up with something unethical" is as bad or worse than "end up with nothing"?
I actually think technologically this looks like quite the achievement, but it's hard for me to see this being used at all for legal commerce. It's just so much of an audience barrier to trade exclusively in cryptocurrencies.
I like the use of Multisig though. Nice touch.
How do they tackle this problem?
Edit: thanks in advance. I reached my time cap trying to find out
In particular, I'm curious if in effect every client has to find, download, validate, and index every listing. And how far you expect that to scale.
There are no easy solutions here, but it's false to claim that these services are inherently better than what came before. They may make it safer to acquire the drugs, but they also make it much easier to do so.
I don't think we should lock people up for possessing these drugs, but an unregulated marketplace with easy access to a Willy Wonka factory of narcotics is deeply troubling.
I think it's scary that (a) these markets are here to stay, and (b) anyone with a computer and the most basic technology skills will be able to get any hard drug they can imagine delivered right to their doorstep.
Again, there's nothing to be done, really. That's just the way the world is now. But it's unfortunate.
Secondly, if Alice wants to sell crack, and Bob wants to buy it, I don't see why you or I or anybody else has the right to stand in the middle and say that's not allowed.
I accept that you think it's not good for Alice and Bob to be able to transact however they like, but you must accept that lots of people do not agree.
We're arguing that when drugs are ubiquitous -- as easy to access as pushing a button -- you'll spawn far more addicts than would have otherwise been created.
When an addict's life is destroyed by these horrific tools of pleasure we've created, are they going to take solace in the fact that they were able to use technology to enable their habit?
People become addicts for many reasons. One of the main ways is by being at a party among friends. No one expects to be addicted to this stuff, so they try a bit.
In the old days, they had one option: Get more from their friend, which may not work forever. In modern times, they can get as much as they want from the darknet markets. Bitcoin ATMs make it trivial, too. You don't even need to be vetted by Coinbase.
It's not just theoretical. People have witnessed the markets causing this.
I don't think the answer has ever been "make it so people can't buy the stuff", because that can't work. Instead, I believe that education, quality control, and help towards addicts would work much better.
The difference when dealing a human being is it's no longer a transaction between only Alice and Bob. There's now a third person involved who has every right to object to the transaction. Decentralised marketplace or not.
Am I proposing that the tools to solve human trafficking go away? I wouldn't put it that way. Lots of societal progress comes with trade-offs. There will certainly be challenges for law enforcement but I'm confident they'll solve them.
The world isn't going to descend into a chaotic state of everyone buying and selling everyone else just because free-trade becomes ubiquitous.
It's not everyone-else-in-the-world's responsibility to avoid building marketplaces where anyone can transact freely with anyone else.
[citation needed]
1.) Lack of anonymity - AFAIK it doesn't yet have integration with tor-or-similar, although this is coming soon
2.) Network effects - hardly anyone is buying or selling anything on OpenBazaar, so there's not much motivation for anyone new to move there. I hope this changes. I use eBay for almost all of my online purchases, and I would love to see the day where OpenBazaar replaces eBay for all or most of my uses.
Law enforcement was designed to protect people (or their property) from the actions of other people, not themselves.
Law enforcement is fundamentally incapable of protecting people from themselves. That is why the "war on drugs" has been so ineffective.
The most effective method to stop the drug (opioid, etc.) epidemic is treatment and education, not law enforcement.
Two points:
1. I can think of many counterexamples to this: Self-harm, suicide attempts, people doing dumb stuff like playing with fireworks. We as a society have decided that if you're a danger to yourself, it's OK to have other people stop you and lock you up until you're not. Of course, people disagree on what counts as self-endangerment.
2. Self-endangerment is not the reason most anti-drug people favor strict punishments. They're concerned about the effect drug use has on society. eg: Worrying that addicts will commit crimes to get their next fix.
I lean very libertarian, so my view is that these substances should be legal and taxed commensurate to the harm they cause. That said, I feel compelled to find flaws in arguments no matter what side they're on.
Pushing the monetary transactions for criminal behavior toward the public consciousness is, IMHO, beneficial to law enforcement, even if there is no clear or reasonable way to prevent or even track the monetary transactions themselves. So long as people are educated about criminal behavior, we can have a culture where law enforcement is actually effective; after all, real crime happens away from keyboard.
All of which can be orchestrated by the police themselves. In an anonymous transaction the other party could very well be the FBI.
Not true in countries where a very large portion of the taxes I pay go to free health care and unemployment grants.
Many countries, UK and Denmark for example, also have penalty tax on sugar and fat to prevent prevent from getting fat (protecting people from themselves) as it increases health care cost.
Much like strong end-to-end crypto has already made it extremely hard to investigate potential criminal activity via wiretapping, and will make it impossible in the future once it's ubiquitous, cryptocurrencies and decentralized markets will do the same to the ability of the governments to track crimes by following the money.
It's not really a good thing or a bad thing, it's just a thing. Regulating it is not feasible (you can ban crypto, but enforcing that ban is another matter entirely), so societies will have to adapt.
The more interesting question is, what does it do to the ability to tax. "Diamond Age" comes to mind...