Reputation

Reputation is the security mechanism used for Bisq Easy, a Bisq 2 trade protocol.

Bisq Easy does not use security deposits to ensure that trades go smoothly, instead buyers rely on the reputation of the sellers to ensure the trade goes smoothly.

Generally the higher the sellers reputation on Bisq Easy the higher the likelihood is of the trade being successful, and conversely, the lower the sellers reputation is on Bisq Easy the less the likelihood is of the trade being successful.

Buyers should look to choose sellers with a high reputation for their trades.

Sellers should look at how to maximize their reputation to ensure they get more trades.

How is reputation measured

There are currently 4 ways reputation is measured, these include:

• Burning BSQ
• Setting up a BSQ bond
• Importing the Account Age from Bisq 1
• Importing the Signed Account Age from Bisq 1

What reputation score should buyers look for

Bisq converts a seller's reputation score into am easy to view star system. This makes it easy for buyers to see at a glance which are the most reputable sellers.

The sellers with the highest reputation have 5 stars and the sellers with the lowest reputation will have 0 stars.

Why is Reputation important for sellers

Bitcoin buyers send the fiat or altcoin payment to the sellers prior to receiving the bitcoin. Therefore it is important for bitcoin sellers to have a good reputation to help establish trust with their potential trade partners.

It is expected that users that want to gain reputation to be bitcoin sellers on Bisq Easy will be experienced Bisq users that can provide buyers with a positive experience.

Selling bitcoin on Bisq Easy is expected to be profitable for the sellers in that they will likely choose to sell bitcoin over market price.

How can sellers improve their Bisq Easy reputation

There are multiple ways bitcoin sellers can increase their reputation. This includes:

• Burning BSQ
• Setting up a BSQ bond
• Importing the Account Age from Bisq 1
• Importing the Signed Account Age from Bisq 1

Burning BSQ

A user that wants to improve their reputation on the Bisq Easy trade protocol can can burn BSQ.

The more BSQ that is burned the better the reputation score the user would get.

The minimum amount of BSQ that can be burnt is 5.46 BSQ (dust limit). There is no maximum amount of BSQ a user can choose to burn. Whatever they have that is not locked up they can burn it.

The value gained by burning BSQ decays over time (this is a very gradual reduction that occurs every time a new bitcoin block is confirmed). Repeated regular burning is considered better than one time burn of a higher amount. It can be assumed that regular burning (e.g. each week or month) is a form of work and represents activity by the user resulting in a higher reputation score.

Data about the burned BSQ gets published automatically by the oracle node.

If a user gets banned by a moderator they will lose the reputation value that they gained from burning the BSQ.

Setting up a BSQ bond

Similar to Burn BSQ but using refundable BSQ bonds. Min. lockup time is 10000 blocks (about 2.5 months).

The lock-time is used in the calculation.

To confiscate a scammers bond requires high quorum at DAO voting, thus its more risky that the confiscation might fail.

The weight of that reputation source is therefor lower.

Data about burned BSQ gets published automatically by the oracle node.

Importing the Account Age from Bisq 1

Users of Bisq 1 can gain reputation by importing their account age from Bisq 1 into Bisq 2.

The older the user's account age the more trustworthy the user will be assumed to be.

In case of repeated registrations the oldest account will be used (as it has the highest value). Multiple accounts do not get accumulated.

Importing the Signed Account Age from Bisq 1

Users of Bisq 1 can gain reputation by importing their signed account age from Bisq 1 into Bisq 2.

Signed accounts from Bisq 1 could include any of the following account types:

• Interac e-Transfer
• MoneyBeam (N26)
• National Bank Transfer
• Revolut
• SEPA
• SEPA Instant
• Transfer with Same Bank
• Transfer from Specific Bank
• Uphold
• Zelle

The older the user's signed account age the more trustworthy the user will be assumed to be.

In case of repeated registrations the oldest signed account will be used (as it has the highest value). Multiple accounts do not get accumulated. account will be used (as it has the highest value). Multiple accounts do not get accumulated.

Reputation Simulation Tool

For bitcoin sellers it can get a little complicated to work out what the best way is to increase their reputation. To help make the decision process easier Bisq 2 provides a simulation tool for sellers to see what different actions they can take to increase their reputation.