[bisq-network/proposals] N-factor counterparty confidence mechanisms (#83)

Manfred Karrer notifications at github.com
Sat May 11 09:24:26 UTC 2019

If we integrate it we need to handle the key storage as well. Some users might not feel comfortable to allow key storage in another app. Integrating it with OS key management might be more difficult/complicate on the dev side. 
The PGP key alone has no value (costs) regarding security against scammer, so we need to make sure the way how the key is connected to any reputation (webpage, WoT,...) is well understood by the user and does not lead to false feeling of security. I fear that is the main problem. If I would not have my key on the Bisq release page I would not have much I could demonstrate. A few people signed my key but using WoT is another challenge. Who would take the work and follow up the signers reputation to make a meaningful decision that I am trustworthy?
Don't get me wrong I am a big fan of PGP but also I see how little it is still used/understood after so many years, and as said it need to be connected to a strong reputation source.

### Reputation market (just brainstorming)
Maybe we need to see all those options as a marketplace where anyone can deal with which it's most appropriate to them. How to decide how valuable one option is will be difficult specially once it gets more complex (Pgp -> webpage where its posted). If every user has to do that for himself it becomes expensive from UX and also dangerous as scammers will manage to trick people. Best would be if all those options get converted to a number (price) which reflects its value regarding security. The price finding is though an unsolved challenge. If it would be a normal good it would be a market place where others bid for it. But who wants to bid for a reputation of someone else? Maybe a betting system could do it. I bet with 1000 BSQ that user A who provided a PGP key and a webpage where it is posted is not a scammer. If he is a scammer I lose my BSQ. But those bets would need to stay open very long time and who will bet against beside the scammer who would bet for his own bet and make money that way ;-). So that will not work...

Another approach would be to lend BSQ to others for a BSQ bond. So if you are a new user and do not want to set up a bond yourself as you don't trust the system you could find one who is willing to do that for you and you pay an interest rate for the time of the bond. The one who is giving you the bond would make a rating with you where he checks out if you are trustworthy or not. So the work for evaluating the secruity would be delegated to those persons and the trading peer don't need to deal with that but he has the high security of a BSQ bond. I think that could work but not sure if there is a demand for that (similar as the idea for a general lending market for BTC). I fear people don't want to pay any interest rate and the person doing that becomes a bottleneck for privacy concerns in case there are not many of them but just a few.

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