Difference between revisions of "BSQ"

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BSQ or BSQ tokens are a core function of the Bisq DAO.
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'''BSQ''' colored bitcoin tokens are the unit of account for the Bisq DAO. The easier way to get BSQ is [[BSQ_swaps|swapping]] it for BSQ at Bisq.
  
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=BSQ Token=
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__TOC__
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A BSQ token is a '''coloured coin''' on the Bitcoin blockchain. More plainly, a BSQ token is merely a few satoshis with some additional properties that identify it as BSQ in Bisq software. Outside Bisq, a BSQ token just looks like a few satoshis. But on Bisq, the additional properties have the following results:
 
  
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* the satoshis take on the market value of a BSQ token
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== BSQ Token ==
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* the owner of the satoshis is endowed with power to participate in various Bisq governance functions
 
  
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See it for yourself: [https://blockstream.info/tx/0243f99c848de4f53cb29157d10bf1cdbfcf4219f84e9997dd3cac9244ab7242/ here’s a BSQ transaction on an ordinary block explorer], and here’s [https://explorer.bisq.network/tx.html?tx=0243f99c848de4f53cb29157d10bf1cdbfcf4219f84e9997dd3cac9244ab7242 that same transaction on a BSQ block explorer].
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{{BSQ_Token_Intro}}
  
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The value of a BSQ token is determined by the market as stakeholders buy and sell tokens to perform various functions in the DAO. Because BSQ tokens are only recognized by Bisq software, BSQ trading can only happen in Bisq software.
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=== BSQ v BTC ===
  
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* The BSQ token is not associated with any kind of initial coin offering (ICO) or capital-raising initiative. It’s merely a tool to decentralize the governance of the already-functional Bisq exchange service. As of December 2018, Bisq has facilitated over 19,000 trades without major incident since it went into production in April 2016.
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You can see how the characteristics of a BSQ transaction differ by viewing them side-by-side on a BTC explorer and a BSQ explorer:
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* [https://mempool.space/tx/0243f99c848de4f53cb29157d10bf1cdbfcf4219f84e9997dd3cac9244ab7242 txid 0243f99c848de4f53cb29157d10bf1cdbfcf4219f84e9997dd3cac9244ab7242 on a BTC block explorer]
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* [https://mempool.space/bisq/tx/0243f99c848de4f53cb29157d10bf1cdbfcf4219f84e9997dd3cac9244ab7242 txid 0243f99c848de4f53cb29157d10bf1cdbfcf4219f84e9997dd3cac9244ab7242 on a BSQ block explorer]
  
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You can learn more about coloured coins [https://www.youtube.com/watch?v=68_DU1c0Cac here in this interview] or [https://youtube.com/watch?v=xQTNigsrlO4 here]. Technical details of BSQ tokens are available [[Bisq_DAO_technical_overview|here]].
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=== BSQ Trading ===
  
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Because BSQ tokens are only recognized by Bisq software, BSQ trading can only take place in Bisq software.
  
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While BSQ is just bitcoin, it should only be stored in a Bisq wallet.
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{{Admonition_Warn|'''Please do not try to send BSQ to a non-Bisq wallet''', or to otherwise create your own BSQ transactions. The rules to form a valid BSQ transaction are rather complex, and even the slightest error can result in invalid BSQ. Even the [[DAO_technical_overview|technical overview]] does not cover every single detail—the only complete reference is the source code. Also note that future code changes may break custom transactions or implementations.
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Bisq will NOT provide support for any such cases.}}
  
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=More About BSQ=
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=== BSQ Issuance ===
  
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A single BSQ token is denominated as 100 satoshis (i.e., it’s represented on the Bitcoin blockchain as 0.00000100 BTC). This bitcoin is 'coloured' with additional properties that allow the Bisq software to recognize it as BSQ.
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After the genesis transaction in April 2019, BSQ can only be created through an issuance transaction (compensation request or reimbursement request). See more on BSQ's [[Introduction_to_the_DAO#Overview|issuance and burn dynamic]].
  
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BSQ can only be created in one of two ways:
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{{Admonition_Note|'''The BSQ token is not associated with any kind of initial coin offering (ICO) or capital-raising initiative.''' It’s merely a tool to decentralize the governance of the already-functional Bisq exchange network, which has been operating in production since April 2016.}}
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* through the genesis distribution (detailed below)
 
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* through an issuance transaction (compensation request or reimbursement request)
 
  
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While BSQ is just bitcoin, it should only be stored in a Bisq wallet.
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== BSQ Wallet ==
  
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==Warning==
 
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Please do not try to send BSQ to a non-Bisq wallet, or to otherwise create your own BSQ transactions. The rules to form a valid BSQ transaction are rather complex, and even the slightest error can result in invalid BSQ. Even the [[DAO_technical_overview|technical overview]] does not cover every single detail—the only complete reference is the source code. Also note that future code changes may break custom transactions or implementations. Bisq will NOT provide support for any such cases.
 
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==BSQ Wallet==
 
 
BSQ is stored in a Bitcoin wallet, but the Bisq software takes several measures to keep BSQ and BTC separate to prevent mixing the two by accident. On disk, BTC and BSQ wallets are stored in separate files. In the Bisq interface, BSQ wallets are prefixed with a 'B' to prevent users from mistakenly using BSQ as BTC.
 
BSQ is stored in a Bitcoin wallet, but the Bisq software takes several measures to keep BSQ and BTC separate to prevent mixing the two by accident. On disk, BTC and BSQ wallets are stored in separate files. In the Bisq interface, BSQ wallets are prefixed with a 'B' to prevent users from mistakenly using BSQ as BTC.
  
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As an additional protection measure, Bisq wallets use a special BIP44 derivation path that other wallets won’t understand.
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As an additional protection measure, Bisq wallets use a special BIP-44 [[Restoring_your_wallet_from_seed#Restoring_to_a_non-Bisq_wallet|derivation path]] that other wallets won’t understand.
  
 
For user convenience, the built-in Bisq wallets for BTC and BSQ share the same seed.
 
For user convenience, the built-in Bisq wallets for BTC and BSQ share the same seed.
  
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More details are in the [[DAO_technical_overview|technical overview]].
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More details are in the [[DAO user reference]] and [[DAO technical overview]]. Also see how to [[buy BSQ]].
  
 
[[Category:DAO]]
 
[[Category:DAO]]

Latest revision as of 09:19, 21 January 2022

BSQ colored bitcoin tokens are the unit of account for the Bisq DAO. The easier way to get BSQ is swapping it for BSQ at Bisq.

BSQ Token

A BSQ token is a coloured coin on the Bitcoin blockchain. A single BSQ token is defined to be 100 satoshis with some additional properties that identify it as BSQ in Bisq software.

Outside Bisq, a BSQ token just looks like a few satoshis. But on Bisq, the additional properties have the following results:

  • the satoshis take on the market value of a BSQ token
  • the owner of the satoshis is endowed with power to participate in various Bisq governance functions

You can learn the basics of coloured coins in this 3-minute video or see a longer treatment of the topic in this interview. Technical details of BSQ tokens are available in this document.

BSQ v BTC

You can see how the characteristics of a BSQ transaction differ by viewing them side-by-side on a BTC explorer and a BSQ explorer:

BSQ Trading

Because BSQ tokens are only recognized by Bisq software, BSQ trading can only take place in Bisq software.

While BSQ is just bitcoin, it should only be stored in a Bisq wallet.

Warn
 Please do not try to send BSQ to a non-Bisq wallet, or to otherwise create your own BSQ transactions. The rules to form a valid BSQ transaction are rather complex, and even the slightest error can result in invalid BSQ. Even the technical overview does not cover every single detail—the only complete reference is the source code. Also note that future code changes may break custom transactions or implementations.

Bisq will NOT provide support for any such cases.

BSQ Issuance

After the genesis transaction in April 2019, BSQ can only be created through an issuance transaction (compensation request or reimbursement request). See more on BSQ's issuance and burn dynamic.

Note
 The BSQ token is not associated with any kind of initial coin offering (ICO) or capital-raising initiative. It’s merely a tool to decentralize the governance of the already-functional Bisq exchange network, which has been operating in production since April 2016.

BSQ Wallet

BSQ is stored in a Bitcoin wallet, but the Bisq software takes several measures to keep BSQ and BTC separate to prevent mixing the two by accident. On disk, BTC and BSQ wallets are stored in separate files. In the Bisq interface, BSQ wallets are prefixed with a 'B' to prevent users from mistakenly using BSQ as BTC.

As an additional protection measure, Bisq wallets use a special BIP-44 derivation path that other wallets won’t understand.

For user convenience, the built-in Bisq wallets for BTC and BSQ share the same seed.

More details are in the DAO user reference and DAO technical overview. Also see how to buy BSQ.

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