Difference between revisions of "Trade Protocols"
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=== Lightning Network === | === Lightning Network === | ||
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| + | A Lightning Network Trade protocol has been proposed for Bisq 2. See the [https://github.com/bisq-network/proposals/issues/427 GitHub issue] for more information. | ||
| + | |||
=== 2-of-2 multisig === | === 2-of-2 multisig === | ||
| + | |||
| + | Bisq 1 currently uses a 2-of-2 multisig as its main trade protocol. This involves the buyer and seller putting down a [[security deposit]] that is locked in a multisig until the trade completes. At some point this protocol will be moved over to Bisq 2. | ||
| + | |||
=== Mutually-assured destruction / MAD === | === Mutually-assured destruction / MAD === | ||
| + | |||
| + | A Mutually-assured destruction (MAD) trading protocol has been proposed for Bisq 2 that will enable buyers and sellers to trade with using a security deposit. The trade does not require anyone other than the buyer or seller to be involved in the trade. This trade protocol ensures the trade either completes successfully, or both buyers and seller lose their bitcoin. The possibility of bitcoin being destroyed reduces the risk of one user trying to scam the other. | ||
| + | |||
=== BSQ swaps === | === BSQ swaps === | ||
| + | |||
| + | Bisq 1 users have access to [[BSQ_swaps|BSQ Swaps]]. This allows users to swap from BSQ to BTC and vice versa. This is a type of atomic swap that takes place on the bitcoin blockchain. At some point this protocol will be moved over to Bisq 2. | ||
| + | |||
=== Same-chain atomic swaps === | === Same-chain atomic swaps === | ||
| + | |||
| + | Swapping assets on side chain like Liquid (L-BTC) or Rootstock (RBTC) has been suggested as a trade protocol Bisq 2 could implement. | ||
| + | |||
=== Cross-chain atomic swaps === | === Cross-chain atomic swaps === | ||
| + | |||
| + | Cross-chain atomic swaps opens up the door to users being able to swap XMR for BTC. This will likely be the first cross-chain atomic swap Bisq 2 implements. | ||
| + | |||
=== 2-of-2 Liquid BTC === | === 2-of-2 Liquid BTC === | ||
| + | |||
| + | This trade protocol will use the same trade protocol as the 2-of-2 multisig but it will replace Bitcoin (BTC) with Liquid Bitcoin (L-BTC). The advantage to this is fees will be lower, and users will get more privacy with their trades. The disadvantage is that users will not be trading native bitcoin so will have to be comfortable holding LBTC and consider the costs of converting BTC to LBTC and back again. | ||
== Adding Trade Protocols to Bisq 2 == | == Adding Trade Protocols to Bisq 2 == | ||
| − | Trade protocols are designed to be modular so more trade protocols can be added in the future. | + | Trade protocols are designed to be modular so more trade protocols can be added in the future. Anyone with ideas for new trade protocols should join the discussion on [[Matrix_bisq.chat|Bisq's Matrix chat]]. |
Revision as of 03:03, 30 October 2023
Bisq 2 will offer users the choice of multiple trade protocols.
Having multiple trade protocols allows users to choose the trading protocol that will work best for their particular trade requirements.
Different trade protocols have different:
- Trade fees
- Mining fees
- Security mechanisms
- Dispute mechanisms
- Security deposit requirements
- Privacy benefits / trade-offs
All trade protocols will be able to be accessed from the Bisq 2 application independently. Users will be able to switch between trade protocols for different trades should they wish.
Contents
Bisq Easy
Bisq Easy will be the first trade protocol for Bisq 2. It will be accessible on the launch of Bisq 2.
See here for more information about Bisq Easy.
Future Trade Protocols
Bisq is planning on making the follow trade protocols available on Bisq 2:
Lightning Network
A Lightning Network Trade protocol has been proposed for Bisq 2. See the GitHub issue for more information.
2-of-2 multisig
Bisq 1 currently uses a 2-of-2 multisig as its main trade protocol. This involves the buyer and seller putting down a security deposit that is locked in a multisig until the trade completes. At some point this protocol will be moved over to Bisq 2.
Mutually-assured destruction / MAD
A Mutually-assured destruction (MAD) trading protocol has been proposed for Bisq 2 that will enable buyers and sellers to trade with using a security deposit. The trade does not require anyone other than the buyer or seller to be involved in the trade. This trade protocol ensures the trade either completes successfully, or both buyers and seller lose their bitcoin. The possibility of bitcoin being destroyed reduces the risk of one user trying to scam the other.
BSQ swaps
Bisq 1 users have access to BSQ Swaps. This allows users to swap from BSQ to BTC and vice versa. This is a type of atomic swap that takes place on the bitcoin blockchain. At some point this protocol will be moved over to Bisq 2.
Same-chain atomic swaps
Swapping assets on side chain like Liquid (L-BTC) or Rootstock (RBTC) has been suggested as a trade protocol Bisq 2 could implement.
Cross-chain atomic swaps
Cross-chain atomic swaps opens up the door to users being able to swap XMR for BTC. This will likely be the first cross-chain atomic swap Bisq 2 implements.
2-of-2 Liquid BTC
This trade protocol will use the same trade protocol as the 2-of-2 multisig but it will replace Bitcoin (BTC) with Liquid Bitcoin (L-BTC). The advantage to this is fees will be lower, and users will get more privacy with their trades. The disadvantage is that users will not be trading native bitcoin so will have to be comfortable holding LBTC and consider the costs of converting BTC to LBTC and back again.
Adding Trade Protocols to Bisq 2
Trade protocols are designed to be modular so more trade protocols can be added in the future. Anyone with ideas for new trade protocols should join the discussion on Bisq's Matrix chat.
