[bisq-network/bisq] Investigations for a new trade protocol (#5430)

[Cointastical]

Been thinking about this approach  ...  it's "out there", but thinking it might actually work.  Not sure Bisq platform discussion article is the right place for this, but here goes: 

Is it possible that when both the buyer's payment method (e..g,  altcoin, CBDC, mobile money) is ultra low fee and essentially instant, and the seller's funds are Lighting network (also ultra-low fee and very close to being instant), that the role of the P2P platform can be reduced? 

Assuming the CBDC tx fee is very low, and nearly instantaneous, and the trade is for the seller's funds on Lightning network (which also has a very low tx fee), then there essentially could simply a ping pong back and forth to transfer small amounts of value each time until the full amount of the trade has completed.

For instance, to do a trade of $100, both Seller and the Buyer each put up a security bond of $10 (using anything really, ... LTC with multisig, or whatever).

Once both have put up a security bond:

Step 1.) Buyer's P2P client app sends the first chunk (e.g., $10 payment on the CBDC network), along with a LN invoice for that amount. 
Step 2.) Seller's P2P client app sees that the payment was received (e.g., $10 on CBDC network), then pays the LN invoice.
Step 3.) Buyer's P2P client app sees the LN invoice paid, and then continues with Step 1 for the next chunk (unless the total trade amount (e.g., $100) has been traded).

Once the entire trade amount (e.g., $100) has completed (e.g., 10 X $10 trades), then each party releases the other's security bond back (seller releases buyer's security bond first, then buyer releases seller's security bond next).  If there's a dispute, the arbitration protocol can begin. 

Arbitration scenarios:
- Buyer pays chunk, seller doesn't pay the LN invoice and stops responding.  Buyer is out $10, after arbitration releases buyer's security bond back to buyer, arbitration fund collects eventually seller's security bond.  Seller's reputation/score/trust history takes a hit.
- Buyer doesn't pay chunk and stops responding.  Arbitration releases seller's security bond back to seller, arbitration fund collects eventually buyer's security bond. Buyer's reputation/score/trust history takes a hit.
- Seller releases buyer's security bond at the end of the trade, buyer doesn't release seller's security bond and stops responding.  Arbitration releases seller's security bond back to seller.  Buyer's reputation/score/trust history takes a hit. 
- Technical issues preventing providing proof, or fraud by arbitrator, buyer is out at most $20 ($10 payment sent and $10 security bond), and seller is out at most $10 (security bond). 
- The other scenarios that are not contentious (e.g., technical issues preventing seller from paying) would not need to result in a financial loss to either buyer or seller, through arbitration.   

This lets the P2P platform be primarily a trade advertising mechanism, and maybe automation for paying the chunks, and repository with documented evidence (e.g., fiat payment address provided by seller, LN Invoice(s) provided by buyer, etc.) for potential disputes.  The amount of P2P arbitration should be at a trivial level since there's such very little monetary gain from trying to scam.  

Of course, my chunk amount used for an example ($10) and total trade size ($100) are hypothetical.  Maybe that's something indicated in the trade offer, so that something like a $2K trade would have terms of 4 chunks X $500 each, which might be acceptable when both parties have a great reputation/score/trust history.  

And even if there's no automation involved, this still could work. 

The wildcard for this is the unknown if CBDCs, altcoins, and various fiat payment methods truly end up with ultra low cost fees and are nearly instantaneous.   But even something like USDt on Liquid as buyer's payment method (with 2 minute (?) confirmations), the $2K trade (described above, 4 chunks X $500 each) could be completed within 10 minutes, if both sides are responding promptly.

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