[bisq-network/proposals] Using PoW for the P2P network messages as dos protection (#268)

Manuel notifications at github.com
Mon Nov 30 10:57:21 CET 2020


> But then everyone knows when a certain pair has traded

True.  Problem with privacy is two-fold, (1) for fiat payments, an undercover agent could harvest tons of information no matter how private the system is (once he has the bank details, he can request to the bank with all his transactions), and (2) the anonimity set of bonded traders would be rather limited (at least at the begining). 

But no matter the above, we have to try our best for privacy.  So, isn't the private use of bonds very similar, if not identical, to what privacy coins like Monero already solve?.  That is, seting up a bond would be like mining Monero coins, and using them in an Bisq offer would be like a Monero multisig tx, so only when buyer and seller confirm settlement, the "coin" (bond) can be used again for another offer.   I lack the technical knowledge if all these can be implemented in the BSQ chain.  If it is possible maybe it is a lot of development effort, but in the other hand it is an already well proven system so implementation risks are much lower.

The "only" thing additionally needed is to incentivize traders to confirm the settlement to avoid mediation requests of traders asking to free up their bonds because the other trader did not confirm. One way could be to atomically tie the bonds from both traders, if technically possible, so both bonds always have to be unlocked together, and/or to give BSQ back from the trading fee upon confirmation (more BSQ back if the trade is confirmed sooner)

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