Difference between revisions of "Bisq 2"
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Bisq 2 achieves censorship in the same way as Bisq 1: | Bisq 2 achieves censorship in the same way as Bisq 1: | ||
| − | * Bisq’s network is a | + | * Bisq’s network is a fully distributed P2P network, and thus difficult to shut down |
| − | * Bisq’s network is | + | * Bisq’s network is built on top of Tor, and thus inherits Tor’s own censorship resistance |
| − | * | + | * Bisq is code, not a company; it is not incorporated, and thus cannot be dis-incorporated |
Revision as of 01:47, 30 October 2023
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.
The initial launch of Bisq 2 will support one trading protcol 'Bisq Easy'. Overtime more trading protocols will be added.
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 (it is hoped that in the future Bisq 2 will be able to be accessed via mobile applications).
- Bisq 2 enables users to access multiple trading protocols that best suit their needs, privacy requirements, security requirements, and levels of risk tolerance.
- 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. Users will also access Bisq 2 over the Tor network.
- Bisq 2 is self custodial.
- Bisq 2 is fully open source built and maintained by individual contributors.
Bisq 2 is part of the Bisq project, a decentralized autonomous organization.
Contents
Why Bisq 2 is needed
Bisq v1 is a powerful tool for bitcoiners that want to be able 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.
Some benefits of Bisq 2 include:
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; miner costs, trade fees, privacy, security, convenience, available support etc. All trade protocols can be accessed independently and users can switch between protocols for different trades.
Bisq is planning on making the follow trade protocols available:
- Bisq Easy (reputation based trading with no security deposit requirements)
- Lightning Network based trade protocol
- 2-of-2 multisig with security deposit (current trade protocol used by Bisq 1)
- 2-of-2 multisig without dispute resolution (mutually-assured destruction / MAD)
- BSQ swaps (swap BSQ and BTC)
- Same-chain atomic swaps (e.g. Liquid L-BTC/L-USDT; etc)
- Cross-chain atomic swaps (e.g. XMR/BTC)
- 2-of-2 Liquid BTC multisig with security deposit (similar as current trade protocol used by Bisq 1 but with LBTC to reduce fees)
Trade protocols are designed to be modular so more trade protocols can be added in the future.
Find out more about the trade protocols Bisq 2 will use.
Multiple Security Mechanisms
Due to the multiple trade protocols available users will be able to decide on what security mechanisms they are happy with the secure their trades. For example they could be happy with a low form of security for small trades such as reputation, but require higher forms of security in terms of bitcoin collateral security for larger trades.
There are also options for users to secure trades in a way that require no third party involvement, for example atomic swaps or mutually assured destruction.
The idea is to give users more choice over their security requirements.
Multiple Dispute Resolution Mechanisms
Similar to the multiple security mechanisms available, due to the multiple trade protocols available users will be able to decide on what dispute mechanisms they require for their trade. Users can choose protocols which will have mediation support similar to Bisq 1 or alternatively protocols that involve no input from mediators at all.
Multiple Interfaces
Initially Bisq 2 will be desktop based, but the idea is for Bisq 2 to be API driven to allow users to access it though multiple other ways. The aim is also for Bisq 2 to be accessible from a mobile devise.
Multiple Identities
Bisq 1 used a single onion address to give users their Bisq identify. Bisq 2 will allow for users more control over their identities within Bisq. For example users could create:
- Separate identities for every interaction
- Separate identities identities per payment account
- Separate identities fiat accounts and altcoin accounts
- One global identity
Find out more about how Bisq 2 manages identities.
Multiple Networks
Bisq will support both Tor and I2P, it will be more resistant to DoS attacks, and put less trust in privileged nodes.
Bonded Roles
The contributors providing the resources and infrastructure for Bisq 2 will require their roles to be bonded. This protects users from a malicious contributor.
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 2).
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 be 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.
How Bisq 2 keeps funds secure
Bisq 2 users will control the keys to their bitcoin wallets. Bisq 2 will be self custodial. Some users may wish to use the Bisq 2 bitcoin wallet, other users might wish to use their own self custodial wallet.
Bisq 2 wallet is built on Electrum. Find out more about the Bisq 2 wallet.
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 is a Tor hidden service
- 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 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, and thus inherits Tor’s own censorship resistance
- Bisq is code, not a company; it is not incorporated, and thus cannot be dis-incorporated
