Bisq 2

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 DEX.

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.

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 at the end of 2014 at 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.

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 protcols 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

Multiple Networks

Bisq will support both Tor and I2P, it will be more resistant to DoS attacks, and put less trust in privileged nodes.