Difference between revisions of "Bisq 2"

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m (SuddenWhipVapor moved page Bisq2 to Bisq 2 over redirect: Undid previous change.)
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Bisq2 is the successor to the original Bisq ([[Bisq 1|Bisq v1]]). It has been developed from the ground up to allow for multiple trade protocols to be accessed via a single decentralized exchange platform.  
+
Bisq 2 is the successor to the original Bisq ([[Bisq 1|Bisq v1]]). It has been developed from the ground up to allow for multiple trade protocols to be accessed via a single decentralized exchange platform.  
  
At the initial launch of Bisq2 will support only one trading protocol '[[Bisq Easy]]'. Over time more trading protocols will be added.
+
At the initial launch of Bisq 2 will support only one trading protocol '[[Bisq Easy]]'. Over time more trading protocols will be added.
  
Once the Bisq Multisig protocol is implemented in Bisq2, the old version of Bisq can fade out. [[Bisq 1]] will still find its usage as Bisq DAO management tool and for BSQ-BTC trading.
+
Once the Bisq Multisig protocol is implemented in Bisq 2, the old version of Bisq can fade out. [[Bisq 1]] will still find its usage as Bisq DAO management tool and for BSQ-BTC trading.
  
Similar to Bisq v1, Bisq2 will be a decentralized bitcoin exchange that allows anyone to buy and sell bitcoin in exchange for national currencies or other cryptocurrencies.
+
Similar to Bisq v1, Bisq 2 will be a decentralized bitcoin exchange that allows anyone to buy and sell bitcoin in exchange for national currencies or other cryptocurrencies.
  
* Bisq2 is a desktop application that works across platforms.
+
* Bisq 2 is a desktop application that works across platforms.
* Bisq2 allows users to choose between multiple trading protocols to find the best fit for their preference. Aspects like privacy and security, convenience, costs and trade duration will differ and the user can make the choice.  
+
* Bisq 2 allows users to choose between multiple trading protocols to find the best fit for their preference. Aspects like privacy and security, convenience, costs and trade duration will differ and the user can make the choice.  
* Bisq2 is a peer-to-peer network the enables users to find people to trade with, make and take offers to buy and sell bitcoin, communicate with their trading peers and when necessary access support.
+
* Bisq 2 is a peer-to-peer network the enables users to find people to trade with, make and take offers to buy and sell bitcoin, communicate with their trading peers and when necessary access support.
* Bisq2 is privacy focused, no verified accounts or KYC will be required and run over the Tor network (as well as I2P in future).
+
* Bisq 2 is privacy focused, no verified accounts or KYC will be required and run over the Tor network (as well as I2P in future).
* Bisq2 is self custodial. Your keys are always under your control.
+
* Bisq 2 is self custodial. Your keys are always under your control.
* Bisq2 is open source (AGPL) and built and maintained by contributors who form the Bisq DAO.
+
* Bisq 2 is open source (AGPL) and built and maintained by contributors who form the Bisq DAO.
  
== Why Bisq2? ==
+
== Why Bisq 2? ==
  
 
Bisq v1 is a powerful tool for bitcoiners that want to be able to buy and sell bitcoin peer to peer whilst maintaining their privacy, not having to undergo arduous KYC processes, and keeping control of their bitcoin.  
 
Bisq v1 is a powerful tool for bitcoiners that want to be able to buy and sell bitcoin peer to peer whilst maintaining their privacy, not having to undergo arduous KYC processes, and keeping control of their bitcoin.  
  
Bisq v1 was launched on mainnet in April 2016 and whilst there has been constant improvements to the trade protocol and user interface over the years it was designed from the outset to support only one trade protocol. As bitcoin has developed and Bisq user base has grown there has been an obvious need for Bisq to expand it's offerings to offer more options to it's users for example trades over lightening and access via mobile devices. Bisq2 is the first step to develop something that is built from the ground up to be more accessible to users and provide access to multiple trading protocols that can expend over time.   
+
Bisq v1 was launched on mainnet in April 2016 and whilst there has been constant improvements to the trade protocol and user interface over the years it was designed from the outset to support only one trade protocol. As bitcoin has developed and Bisq user base has grown there has been an obvious need for Bisq to expand it's offerings to offer more options to it's users for example trades over lightening and access via mobile devices. Bisq 2 is the first step to develop something that is built from the ground up to be more accessible to users and provide access to multiple trading protocols that can expend over time.   
  
The core benefits of Bisq2 are:
+
The core benefits of Bisq 2 are:
  
 
=== Multiple Trade Protocols ===
 
=== Multiple Trade Protocols ===
  
Bisq2 will offer a variety of [[trade protocols]] for users. Each trade protocol will come with it's own benefits and tradeoffs. Having multiple protocols allows users to choose what trade protocols are best for them based on; convenience, security, miner costs, trade fees, privacy, available support etc. All trade protocols can be accessed independently and users can switch between protocols for different trades.  
+
Bisq 2 will offer a variety of [[trade protocols]] for users. Each trade protocol will come with it's own benefits and tradeoffs. Having multiple protocols allows users to choose what trade protocols are best for them based on; convenience, security, miner costs, trade fees, privacy, available support etc. All trade protocols can be accessed independently and users can switch between protocols for different trades.  
  
 
The follow trade protocols are on the roadmap:
 
The follow trade protocols are on the roadmap:
Line 43: Line 43:
 
* Monero Swaps: Cross chain atomic swap of BTC <-> XMR
 
* Monero Swaps: Cross chain atomic swap of BTC <-> XMR
  
Find out more about the [[Trade_Protocols|trade protocols]] Bisq2 will use.
+
Find out more about the [[Trade_Protocols|trade protocols]] Bisq 2 will use.
  
 
=== Multiple privacy networks ===
 
=== Multiple privacy networks ===
Bisq2 will support multiple privacy networks. Initially it will only support Tor but I2P support is already implemented but in an experimental state. Upcoming privacy networks like Nym could be added in future if they fit the requirements.
+
Bisq 2 will support multiple privacy networks. Initially it will only support Tor but I2P support is already implemented but in an experimental state. Upcoming privacy networks like Nym could be added in future if they fit the requirements.
  
 
Having multiple networks adds resilience in case one network has availability issues (as it happened multiple times with Tor when DoS attacks decreased the Tor network stability and with that Bisq's availability and stability).
 
Having multiple networks adds resilience in case one network has availability issues (as it happened multiple times with Tor when DoS attacks decreased the Tor network stability and with that Bisq's availability and stability).
Line 54: Line 54:
 
===Multiple Identities ===
 
===Multiple Identities ===
  
Bisq 1 used a single onion address and key pair which represent the users identify. Bisq2 will allow to create multiple identities, giving the user more control and better privacy. The user can choose between the highest level of convenience and use just one global identity for all interactions (like Bisq 1) or at the other extreme use a separate identity for any type of interaction (e.g. use a different identity for each trade as well as for each chat room). And anything in between (separating fiat and altcoin trades,...).
+
Bisq 1 used a single onion address and key pair which represent the users identify. Bisq 2 will allow to create multiple identities, giving the user more control and better privacy. The user can choose between the highest level of convenience and use just one global identity for all interactions (like Bisq 1) or at the other extreme use a separate identity for any type of interaction (e.g. use a different identity for each trade as well as for each chat room). And anything in between (separating fiat and altcoin trades,...).
  
Find out more about how Bisq2 manages [[Identity|identities]].
+
Find out more about how Bisq 2 manages [[Identity|identities]].
  
 
=== Multiple applications ===
 
=== Multiple applications ===
  
The reference implementation will be the Bisq2 JavaFx desktop application.
+
The reference implementation will be the Bisq 2 JavaFx desktop application.
  
 
But there is also ongoing work on a HTML interface with a headless application to be used on personal Node projects like Start9, Umbrel, MyNode,...
 
But there is also ongoing work on a HTML interface with a headless application to be used on personal Node projects like Start9, Umbrel, MyNode,...
Line 70: Line 70:
 
=== Multiple wallets ===
 
=== Multiple wallets ===
  
At launch time Bisq2 will not include a wallet, but work is underway to support multiple wallet options.
+
At launch time Bisq 2 will not include a wallet, but work is underway to support multiple wallet options.
  
 
Bitcoin core as full wallet is already implemented (but not exposed in the UI). For users who do not want to run a full Bitcoin node, there will be a light wallet option. Currently Electrum is implemented but we might change to another solution.
 
Bitcoin core as full wallet is already implemented (but not exposed in the UI). For users who do not want to run a full Bitcoin node, there will be a light wallet option. Currently Electrum is implemented but we might change to another solution.
  
For the different trade protocols there will be the specific wallets requires. E.g. for Liquid the Elements wallet is already integrated. For Monero Swaps we need to provide an interface for using the Monero wallet. Find out more about the [[Bisq_2_Wallet|Bisq2 wallet]].
+
For the different trade protocols there will be the specific wallets requires. E.g. for Liquid the Elements wallet is already integrated. For Monero Swaps we need to provide an interface for using the Monero wallet. Find out more about the [[Bisq_2_Wallet|Bisq 2 wallet]].
  
 
=== Bonded Roles ===
 
=== Bonded Roles ===
  
The contributors providing the resources and infrastructure for Bisq2 will require their roles to be bonded. This concept was also used in Bisq 1 but as it was not strictly enforced by the system, not all roles are secured by bonds as it was envisioned. In Bisq2 having set up a BSQ bond is mandatory for most roles and node operators and enforced by the system.
+
The contributors providing the resources and infrastructure for Bisq 2 will require their roles to be bonded. This concept was also used in Bisq 1 but as it was not strictly enforced by the system, not all roles are secured by bonds as it was envisioned. In Bisq 2 having set up a BSQ bond is mandatory for most roles and node operators and enforced by the system.
  
Find out more about the [[Bisq_2_Roles|Bisq2 roles]].
+
Find out more about the [[Bisq_2_Roles|Bisq 2 roles]].
  
== Bisq 1 vs Bisq2 ==
+
== Bisq 1 vs Bisq 2 ==
  
When Bisq2 is launched it will initially only use the one trade protocol '[[Bisq Easy]]' therefore the differences are based on a 2-of-2 multisig protocol (Bisq 1) vs a reputation based trade protocol (Bisq Easy).
+
When Bisq 2 is launched it will initially only use the one trade protocol '[[Bisq Easy]]' therefore the differences are based on a 2-of-2 multisig protocol (Bisq 1) vs a reputation based trade protocol (Bisq Easy).
  
 
== Bisq Easy ==
 
== Bisq Easy ==
Line 94: Line 94:
 
The seller is expected to be an experienced Bitcoin and Bisq user and to have built up reputation. The seller should be helpful and serve as guide through the newbies first Bitcoin trade.
 
The seller is expected to be an experienced Bitcoin and Bisq user and to have built up reputation. The seller should be helpful and serve as guide through the newbies first Bitcoin trade.
  
Bisq Easy tries to be a much more social experience as it is the case on Bisq2. It also provides a "learn" section where newbies can learn about important topics like wallets, privacy and security. The various sections for chat rooms should also boost the social and communicative aspect of Bisq Easy.
+
Bisq Easy tries to be a much more social experience as it is the case on Bisq 2. It also provides a "learn" section where newbies can learn about important topics like wallets, privacy and security. The various sections for chat rooms should also boost the social and communicative aspect of Bisq Easy.
  
 
=== Main differences for BTC buyers ===  
 
=== Main differences for BTC buyers ===  
  
Initially when Bisq2 is launched the difference between versions will be that Bisq2 will allow for users to buy bitcoin with no security deposit, no trade fees and no miner fees. Whereas, Bisq 1 will allow users to buy bitcoin with a security deposit and incur trade fees and miner costs.
+
Initially when Bisq 2 is launched the difference between versions will be that Bisq 2 will allow for users to buy bitcoin with no security deposit, no trade fees and no miner fees. Whereas, Bisq 1 will allow users to buy bitcoin with a security deposit and incur trade fees and miner costs.
  
The tradeoff for Bisq2 is that the security of the trade will be based on seller reputation as opposed to Bisq 1 where the security of the trade is based on bitcoin collateral secured in the multisig.  
+
The tradeoff for Bisq 2 is that the security of the trade will be based on seller reputation as opposed to Bisq 1 where the security of the trade is based on bitcoin collateral secured in the multisig.  
  
Therefore, Bisq2 will be cheaper and more convenient to trade for bitcoin buyers but at the cost of less robust security than Bisq 1. This is opposed to Bisq 1 that will be more secure but also more expensive, in terms of trade and miner fees, and less convenient for bitcoin buyers.  
+
Therefore, Bisq 2 will be cheaper and more convenient to trade for bitcoin buyers but at the cost of less robust security than Bisq 1. This is opposed to Bisq 1 that will be more secure but also more expensive, in terms of trade and miner fees, and less convenient for bitcoin buyers.  
  
Bisq2 will initially be more suitable for users wanting to complete trades for small amounts of bitcoin, whereas, Bisq 1 will continue to be suitable for users wanting to complete trades for larger amounts of bitcoin.
+
Bisq 2 will initially be more suitable for users wanting to complete trades for small amounts of bitcoin, whereas, Bisq 1 will continue to be suitable for users wanting to complete trades for larger amounts of bitcoin.
  
 
=== Main differences for BTC sellers ===  
 
=== Main differences for BTC sellers ===  
  
Initially when Bisq2 is launched the difference between versions will be that Bisq2 will allow for users sell bitcoin with no security deposit, no trade fees and no security deposit. Whereas, Bisq 1 will allow users to sell bitcoin with a security deposit and incur trade fees and miner costs.
+
Initially when Bisq 2 is launched the difference between versions will be that Bisq 2 will allow for users sell bitcoin with no security deposit, no trade fees and no security deposit. Whereas, Bisq 1 will allow users to sell bitcoin with a security deposit and incur trade fees and miner costs.
  
Sellers on Bisq2 will be expected to build their [[reputation]]. This can be done in multiple ways but to achieve a high reputation they will need to either burn BSQ and / or create a BSQ bond that locks in a specific amount of BSQ for a specified length of time.  
+
Sellers on Bisq 2 will be expected to build their [[reputation]]. This can be done in multiple ways but to achieve a high reputation they will need to either burn BSQ and / or create a BSQ bond that locks in a specific amount of BSQ for a specified length of time.  
  
The first iteration of Bisq2 will have more buyers than sellers. That means a small number of sellers will be servicing the buyers. Bitcoin sellers on Bisq2 will be required to make a judgement on how best to achieve their reputation and what the cost of doing so will involve. Bitcoin seller's using Bisq2 will also need to account for the fact that bitcoin buyers are not putting down a security deposit for their trades so there will likely be a higher trade abandonment than in Bisq 1.
+
The first iteration of Bisq 2 will have more buyers than sellers. That means a small number of sellers will be servicing the buyers. Bitcoin sellers on Bisq 2 will be required to make a judgement on how best to achieve their reputation and what the cost of doing so will involve. Bitcoin seller's using Bisq 2 will also need to account for the fact that bitcoin buyers are not putting down a security deposit for their trades so there will likely be a higher trade abandonment than in Bisq 1.
  
It is expected that some bitcoin sellers currently active on Bisq 1 may choose to experiment with Bisq2, and the number of buyer and sellers on Bisq2 will grow over time.
+
It is expected that some bitcoin sellers currently active on Bisq 1 may choose to experiment with Bisq 2, and the number of buyer and sellers on Bisq 2 will grow over time.
  
 
As in Bisq 1 seller's will be able to choose the price above or below market they wish to sell their bitcoin for.
 
As in Bisq 1 seller's will be able to choose the price above or below market they wish to sell their bitcoin for.
Line 120: Line 120:
 
Due the requirements on bonds and the potential higher effort on communication with a newbie Bitcoiner, the price premium can be expected to be much higher than in Bisq 1 (maybe 10-15% above market). The Seller is the one who sets the price.
 
Due the requirements on bonds and the potential higher effort on communication with a newbie Bitcoiner, the price premium can be expected to be much higher than in Bisq 1 (maybe 10-15% above market). The Seller is the one who sets the price.
  
== How Bisq2 keeps data private ==
+
== How Bisq 2 keeps data private ==
  
Bisq2 achieves date privacy for users in the same way as Bisq 1:
+
Bisq 2 achieves date privacy for users in the same way as Bisq 1:
  
 
* Using Bisq requires no registration or centralized identity verification
 
* Using Bisq requires no registration or centralized identity verification
Line 129: Line 129:
 
* Data is encrypted such that trade details are readable only by counter-parties
 
* Data is encrypted such that trade details are readable only by counter-parties
  
== How Bisq2 resists censorship ==
+
== How Bisq 2 resists censorship ==
  
Bisq2 achieves censorship resistance in the same way as Bisq 1:
+
Bisq 2 achieves censorship resistance in the same way as Bisq 1:
  
 
* Bisq’s network is a fully distributed P2P network, and thus difficult to shut down
 
* Bisq’s network is a fully distributed P2P network, and thus difficult to shut down
Line 137: Line 137:
 
* Bisq is an open source projet and a DAO, not a company; it is not incorporated, and thus cannot be dis-incorporated
 
* Bisq is an open source projet and a DAO, not a company; it is not incorporated, and thus cannot be dis-incorporated
  
== Advanced configurations for Bisq2 ==
+
== Advanced configurations for Bisq 2 ==
  
For users that want to tinker with the default config setting. Bisq2 supports users to add a config file in the data directory which overrides the default config.
+
For users that want to tinker with the default config setting. Bisq 2 supports users to add a config file in the data directory which overrides the default config.
  
 
This can be useful instead of dealing with command line options. Command-line options override values set in the configuration file.
 
This can be useful instead of dealing with command line options. Command-line options override values set in the configuration file.
  
 
For more info see the GitHub pull request [https://github.com/bisq-network/bisq2/pull/2201 here].
 
For more info see the GitHub pull request [https://github.com/bisq-network/bisq2/pull/2201 here].

Revision as of 21:08, 21 October 2024

Bisq 2 is the successor to the original Bisq (Bisq v1). It has been developed from the ground up to allow for multiple trade protocols to be accessed via a single decentralized exchange platform.

At the initial launch of Bisq 2 will support only one trading protocol 'Bisq Easy'. Over time more trading protocols will be added.

Once the Bisq Multisig protocol is implemented in Bisq 2, the old version of Bisq can fade out. Bisq 1 will still find its usage as Bisq DAO management tool and for BSQ-BTC trading.

Similar to Bisq v1, Bisq 2 will be a decentralized bitcoin exchange that allows anyone to buy and sell bitcoin in exchange for national currencies or other cryptocurrencies.

  • Bisq 2 is a desktop application that works across platforms.
  • Bisq 2 allows users to choose between multiple trading protocols to find the best fit for their preference. Aspects like privacy and security, convenience, costs and trade duration will differ and the user can make the choice.
  • Bisq 2 is a peer-to-peer network the enables users to find people to trade with, make and take offers to buy and sell bitcoin, communicate with their trading peers and when necessary access support.
  • Bisq 2 is privacy focused, no verified accounts or KYC will be required and run over the Tor network (as well as I2P in future).
  • Bisq 2 is self custodial. Your keys are always under your control.
  • Bisq 2 is open source (AGPL) and built and maintained by contributors who form the Bisq DAO.

Why Bisq 2?

Bisq v1 is a powerful tool for bitcoiners that want to be able to buy and sell bitcoin peer to peer whilst maintaining their privacy, not having to undergo arduous KYC processes, and keeping control of their bitcoin.

Bisq v1 was launched on mainnet in April 2016 and whilst there has been constant improvements to the trade protocol and user interface over the years it was designed from the outset to support only one trade protocol. As bitcoin has developed and Bisq user base has grown there has been an obvious need for Bisq to expand it's offerings to offer more options to it's users for example trades over lightening and access via mobile devices. Bisq 2 is the first step to develop something that is built from the ground up to be more accessible to users and provide access to multiple trading protocols that can expend over time.

The core benefits of Bisq 2 are:

Multiple Trade Protocols

Bisq 2 will offer a variety of trade protocols for users. Each trade protocol will come with it's own benefits and tradeoffs. Having multiple protocols allows users to choose what trade protocols are best for them based on; convenience, security, miner costs, trade fees, privacy, available support etc. All trade protocols can be accessed independently and users can switch between protocols for different trades.

The follow trade protocols are on the roadmap:

  • Bisq Easy: Reputation based trading with no security deposit requirements (included in the intitial launch)
  • Bisq Multisig: Similar to the current trade protocol used by Bisq 1 but with some improvements
  • Submarine Swaps: Atomic swap of LN BTC <-> mainnet BTC
  • Liquid Submarine Swaps: Atomic swap of LN BTC <-> Liquid BTC
  • Liquid Multisig: Bisq Multisig ported to Liquid network with faster confirmation, lower fees and better privacy (confidential transactions)
  • Bisq Lightning: LN BTC <-> Fiat (chain of multiple protocols: Liquid Submarine Swaps, Liquid Multisig)
  • Liquid Swaps: Atomic swap of Liquid BTC <-> Liquid assets like L-USDT
  • BSQ Swaps: Atomic swap of BSQ <-> BTC
  • Monero Swaps: Cross chain atomic swap of BTC <-> XMR

Find out more about the trade protocols Bisq 2 will use.

Multiple privacy networks

Bisq 2 will support multiple privacy networks. Initially it will only support Tor but I2P support is already implemented but in an experimental state. Upcoming privacy networks like Nym could be added in future if they fit the requirements.

Having multiple networks adds resilience in case one network has availability issues (as it happened multiple times with Tor when DoS attacks decreased the Tor network stability and with that Bisq's availability and stability).

The P2P network has also a build in DoS protection using Proof of Work and come with many improvements compared the the Bisq 1 P2P network.

Multiple Identities

Bisq 1 used a single onion address and key pair which represent the users identify. Bisq 2 will allow to create multiple identities, giving the user more control and better privacy. The user can choose between the highest level of convenience and use just one global identity for all interactions (like Bisq 1) or at the other extreme use a separate identity for any type of interaction (e.g. use a different identity for each trade as well as for each chat room). And anything in between (separating fiat and altcoin trades,...).

Find out more about how Bisq 2 manages identities.

Multiple applications

The reference implementation will be the Bisq 2 JavaFx desktop application.

But there is also ongoing work on a HTML interface with a headless application to be used on personal Node projects like Start9, Umbrel, MyNode,...

Beside that there will be a REST API (useful for trading bots,...).

Bisq Easy can be implemented as a mobile app (at least for Android there are no conceptual or technical hurdles).

Multiple wallets

At launch time Bisq 2 will not include a wallet, but work is underway to support multiple wallet options.

Bitcoin core as full wallet is already implemented (but not exposed in the UI). For users who do not want to run a full Bitcoin node, there will be a light wallet option. Currently Electrum is implemented but we might change to another solution.

For the different trade protocols there will be the specific wallets requires. E.g. for Liquid the Elements wallet is already integrated. For Monero Swaps we need to provide an interface for using the Monero wallet. Find out more about the Bisq 2 wallet.

Bonded Roles

The contributors providing the resources and infrastructure for Bisq 2 will require their roles to be bonded. This concept was also used in Bisq 1 but as it was not strictly enforced by the system, not all roles are secured by bonds as it was envisioned. In Bisq 2 having set up a BSQ bond is mandatory for most roles and node operators and enforced by the system.

Find out more about the Bisq 2 roles.

Bisq 1 vs Bisq 2

When Bisq 2 is launched it will initially only use the one trade protocol 'Bisq Easy' therefore the differences are based on a 2-of-2 multisig protocol (Bisq 1) vs a reputation based trade protocol (Bisq Easy).

Bisq Easy

Bisq Easy was designed for new Bitcoin users who have not yet purchased Bitcoin and thererfor cannot use Bisq 1 due the requirements of the security deposit. A lot of effort was put into making it as simple to use as possible.

Bisq Easy tries to replicate the experience of a novice Bitcoiner visiting a Bitcoin meetup and getting a gentle and friendly introduction into the Bitcoin world as well has the opportunity to purchase their first Bitcoin from a helpful peer. This is inspired by the famous Satoshi Squares (early days informal Bitcoin meetups), which was also the initial name inspiration for Bitsquare - the previous brand name of Bisq.

The seller is expected to be an experienced Bitcoin and Bisq user and to have built up reputation. The seller should be helpful and serve as guide through the newbies first Bitcoin trade.

Bisq Easy tries to be a much more social experience as it is the case on Bisq 2. It also provides a "learn" section where newbies can learn about important topics like wallets, privacy and security. The various sections for chat rooms should also boost the social and communicative aspect of Bisq Easy.

Main differences for BTC buyers

Initially when Bisq 2 is launched the difference between versions will be that Bisq 2 will allow for users to buy bitcoin with no security deposit, no trade fees and no miner fees. Whereas, Bisq 1 will allow users to buy bitcoin with a security deposit and incur trade fees and miner costs.

The tradeoff for Bisq 2 is that the security of the trade will be based on seller reputation as opposed to Bisq 1 where the security of the trade is based on bitcoin collateral secured in the multisig.

Therefore, Bisq 2 will be cheaper and more convenient to trade for bitcoin buyers but at the cost of less robust security than Bisq 1. This is opposed to Bisq 1 that will be more secure but also more expensive, in terms of trade and miner fees, and less convenient for bitcoin buyers.

Bisq 2 will initially be more suitable for users wanting to complete trades for small amounts of bitcoin, whereas, Bisq 1 will continue to be suitable for users wanting to complete trades for larger amounts of bitcoin.

Main differences for BTC sellers

Initially when Bisq 2 is launched the difference between versions will be that Bisq 2 will allow for users sell bitcoin with no security deposit, no trade fees and no security deposit. Whereas, Bisq 1 will allow users to sell bitcoin with a security deposit and incur trade fees and miner costs.

Sellers on Bisq 2 will be expected to build their reputation. This can be done in multiple ways but to achieve a high reputation they will need to either burn BSQ and / or create a BSQ bond that locks in a specific amount of BSQ for a specified length of time.

The first iteration of Bisq 2 will have more buyers than sellers. That means a small number of sellers will be servicing the buyers. Bitcoin sellers on Bisq 2 will be required to make a judgement on how best to achieve their reputation and what the cost of doing so will involve. Bitcoin seller's using Bisq 2 will also need to account for the fact that bitcoin buyers are not putting down a security deposit for their trades so there will likely be a higher trade abandonment than in Bisq 1.

It is expected that some bitcoin sellers currently active on Bisq 1 may choose to experiment with Bisq 2, and the number of buyer and sellers on Bisq 2 will grow over time.

As in Bisq 1 seller's will be able to choose the price above or below market they wish to sell their bitcoin for.

Due the requirements on bonds and the potential higher effort on communication with a newbie Bitcoiner, the price premium can be expected to be much higher than in Bisq 1 (maybe 10-15% above market). The Seller is the one who sets the price.

How Bisq 2 keeps data private

Bisq 2 achieves date privacy for users in the same way as Bisq 1:

  • Using Bisq requires no registration or centralized identity verification
  • Every Bisq application connects to the Bisq network with a Tor hidden service (as well as I2P in future)
  • Bisq has no central servers or databases to record data
  • Data is encrypted such that trade details are readable only by counter-parties

How Bisq 2 resists censorship

Bisq 2 achieves censorship resistance in the same way as Bisq 1:

  • Bisq’s network is a fully distributed P2P network, and thus difficult to shut down
  • Bisq’s network is built on top of Tor (I2P), and thus inherits Tor’s own censorship resistance
  • Bisq is an open source projet and a DAO, not a company; it is not incorporated, and thus cannot be dis-incorporated

Advanced configurations for Bisq 2

For users that want to tinker with the default config setting. Bisq 2 supports users to add a config file in the data directory which overrides the default config.

This can be useful instead of dealing with command line options. Command-line options override values set in the configuration file.

For more info see the GitHub pull request here.