BISQ: DETAILED REVIEW OF A SHOPPING PLACE
Bisq is the first decentralized bitcoin exchange, the development of which took at least two years. The essence of decentralization is that it eliminates the danger of hacker attacks, attempts by authorities and law enforcement officers to influence the service, as well as the ability to track the movement of user money.
Bisq is an open source project, which means that any user from anywhere in the world can use it to trade cryptocurrency in exchange for regular money. No intermediaries or permissions are required for this. It is also important that decentralization enables users to remain anonymous. Unlike regulated resources of a similar plan, Bisq does not monitor your transactions, does not know how much you earn and what you spend your savings on.
HOW IT WORKS
To get started with Bisq, you need to download and install their software. After running the program on your computer, the program will connect you to other participants through a peer-to-peer network that runs on top of Tor. From all nodes of the network you will receive trading offers that will be collected in a list of orders, where you can independently sort them by payment method, price and other features.
When you select the offer that suits you best, you can enter into a deal. If you could not find anything suitable among all the available options, then you can create your own proposal, which appears in the list, and someone else can accept it.
As soon as two users mutually agree to the transaction, the process of its completion is launched. It consists of several steps, many of which are automated. Two participants must find an arbiter who will be an independent witness to the transaction. After that, both parties are required to deposit bitcoins to a specially generated address with multi-signature for each participant. Both parties must deposit a certain amount of coins as a deposit for transaction insurance. In case something goes wrong, they will be used to pay compensation to the injured party. Plus, the seller deposits bitcoins, which are subject to sale according to the terms of the transaction. The multi-signature has three keys, each of which belongs to three parties to the transaction. Therefore, bitcoins can not be spent until all parties agree.
The next step is sending money by the buyer to the seller’s account. This can be done using a bank transfer or several payment systems to choose from. When the payment is sent, it must be confirmed on Bisq.
At the last stage of the transaction, the seller receives the amount in his account and confirms the release of bitcoins with Bisq. The arbiter takes part in the transaction only if something goes wrong.
- The resource is open source and serves users from all over the world.
- Decentralization provides many advantages over regulated sites. The main one is the complete privacy of each user.
- Arbitration makes the process more reliable and eliminates fraud from sellers.
- The Bisq system is rather complicated. For beginners, it may be difficult to understand the principles of the service intuitively.
- Exchange is quite slow. While centralized sites allow instant deposit / withdrawal of funds, the same process on Bisq can take a day, or even more.
- The need to download and install software on your computer raises the entry threshold for trading on Bisq.
- It is necessary to make an insurance deposit and pay an additional commission for the services of an arbitrator.
Bisq is interesting in the specifics of its device. We are sure that decentralization is extremely important for cryptocurrency exchanges, because any attempt to regulate them contradicts the very idea of bitcoin. Bisq has many advantages over centralized sites. Most importantly, users may not be afraid that the site will appropriate their funds or transfer their data to third parties. However, this requires some sacrifice and therefore this site is definitely not suitable for high-speed traders, since transactions here are quite slow.
We think that in the near future Bisq will grow into a large autonomous organization with great opportunities for traders around the world.