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From YouTube: 34C3 ChaosWest - Bisq - A decentralized bitcoin exchange
Description
https://media.ccc.de/v/34c3-ChaosWest-10-bisq_a_decentralized_bitcoin_exchange
In this talk we'll explore Bisq – a decentralized, peer-to-peer bitcoin exchange that allows people to trade bitcoin for national currencies like US dollars and Euros, as well as for other cryptocurrencies like Litecoin, Monero and Namecoin. Bisq has been in development since early 2014 and in production since mid-2016, with a no-compromises approach to security, privacy and censorship resistance.
https://bisq.network
Cbeams
A
Maybe
you
have
the
time
to
just
fragment
a
little
bit,
as
you
know,
from
the
other
talks
this
by
the
way
is
what
is
this
self
organized
sessions?
So
if
you
have
a
topic
or
kink
or
something,
you
really
really
want
to
talk
about,
feel
free
contact
me
or
my
team.
Actually,
the
team
and
me
we
do
have
a
few
slots
and
we
are
looking
forward
to
set
you
up.
Give
you
a
little
stage
for
your
project
and
everything.
A
A
B
C
That's
me,
I'm
a
co-founder
of
the
project
along
with
Manfred
carer
who's
in
the
audience
here
today,
as
well.
Let's
say
a
little
bit
about
what
bisque
is.
First
bisque
is
a
decentralized
peer-to-peer,
Bitcoin
exchange,
it's
best
described
as
follows
in
terms
of
its
major
component
parts,
which
is
one
bisque,
is
a
cross-platform
desktop
application.
It
allows
anybody
to
buy
and
sell
Bitcoin
in
exchange
for
national
currencies
right.
C
The
bisque
network
is
fully
peer-to-peer
in
that
it
requires
no
centrally
controlled
servers
and
it
has
no
central
points
of
failure.
So
bisque
is
a
desktop
application,
a
trading
protocol
and
appear
to
peer
network
that
all
work
together
to
form
a
decentralized
Bitcoin
exchange.
Bisque
is
a
GPL
license.
So
it's
free
software
free
software
for
free
people.
C
So,
let's
talk
about
why
we
built
it.
Why
does
this
exist?
Our
mission
is
to
provide
a
secure,
private
and
censorship
resistant
way
to
exchange
Bitcoin
for
national
currencies
and
other
cryptocurrencies
when
we
say
secure
we're
talking
about
the
safety
of
your
funds
today,
most
Bitcoin
exchanges
that
you
use
are
centralized.
C
That
requires
people
to
store
their
bitcoins
on
centralized
services,
servers,
putting
those
bitcoins
at
risk
and
even
if
you're
doing
this
just
for
some
short
amount
of
time,
just
as
long
as
it
takes
to
trade
and
then
withdraw
your
funds,
thousands
of
people
are
doing
that
at
the
same
time
and
that
creates
extreme
incentives
for
those
servers
to
be
hacked
and
for
those
bitcoins
to
be
stolen,
and
this
is
exactly
what
happens
time
and
time
again.
The
beatings
have
and
will
continue
so
long
as
people
continue
to
do
it
wrong
right.
C
This
is
antithetical
to
the
way
Bitcoin
works.
These
hacks
are
tens
of
thousands
of
dollars
worth
of
Bitcoin,
hundreds
of
thousands,
sometimes
hundreds
of
millions
of
dollars
worth
of
Bitcoin
like
in
the
very
famous
case
of
Mount-
GOx-
incidentally,
not,
incidentally,
not
coincidentally
bisques
first
prototype
showed
up
just
a
few
weeks
after
mount
cox
failure,
so
security
right
privacy
when
we
say
private,
we're
talking
about
users
ability
to
control
access
to
their
own
information.
C
So
today,
most
of
those
same
centralized
exchanges
require
users
to
divulge
personally
identifying
information
in
order
to
set
up
an
account,
and
then
they
in
turn,
link
that
data
link
that
data
about
users
about
you
with
your
trading
activity.
This
practice
creates
extreme
risks
in
that
your
personal
details
and
sensitive
financial
information
can
be
stolen,
leaked
or
otherwise
used
against
your
own
best
interests.
We
don't
have
to
look
any
further
than
recent
news
right.
C
You
know
not
Bitcoin
related,
but
we
probably
have
all
heard
about
Equifax,
literally
half
of
all
of
the
people
in
the
United
State,
more
than
half
of
the
adults
being
you
know,
doxed
right,
143
million
people's
personal
data,
very
sensitive
personal
data
being
being
hacked
at
Equifax
right
literally,
every
single
yahoo
account
was
hacked
recently
and
this
one
people
who
know
Bitcoin
will
know.
Well,
you
know
the
IRS.
The
financial
agency
in
the
u.s.
C
came
to
coinbase
a
couple
of
years
ago
and
said
basically
we'd
like
all
of
your
data
about
all
of
your
users
and
that's
not
good
for
them.
It's
not
good
for
users
right
so
secure,
private
censorship
resistant.
So
when
we
say
censorship,
resistant,
we're
referring
to
users
ability
to
voluntarily
trade
with
one
another
without
interference
from
any
third
party
today,
centralized
Bitcoin
exchanges
are
highly
susceptible
to
that
censorship.
C
By
their
nature,
they
have
to
operate
in
one
legal
jurisdiction
or
another
that
puts
them
at
risk
of
being
fined
or
shut
down
if
they
don't
comply
with
the
laws
and
rules
of
that
jurisdiction,
which
may
include
and
usually
do
include
restrictions
on
who
can
trade?
What
can
be
traded
and
almost
always
include
requirements
to
collect
personal
information
as
I
described
above
so
these
are
bank
secrecy
laws,
any
money
laundering
laws.
No,
your
customer
laws.
C
These
are
almost
ubiquitous
in
this
means
that
when
you're
signing
up
for
these
centralized
exchanges
to
exchange
Bitcoin
you're
having
to
give
copies
of
your
passport,
your
electricity
bill
all
kinds
of
sensitive
information
that
does
you
no
good
to
share
so
and
again,
we
have
to
don't
have
to
look
any
further
than
you
know,
recent
news,
and
in
Bitcoin
this
year
many
people
have
probably
are
probably
familiar
with
the
stories
of
China,
shutting
down
banning
exchanges,
all
kinds
of
madness
right.
So
so
governments
can
do
this.
They
can
they
will.
C
This
is
the
kind
of
censorship
that
we're
talking
about,
and
this
is
why
we
built
this.
The
way
that
we
built
it
right.
The
only
way
to
achieve
all
of
these
properties,
I'm
talking
about
secure
private
and
censorship
resistant,
is
to
be
decentralized
right.
We
don't
build
things
decentralized,
just
to
do
it
that's
way
harder
than
building
things
centralized
right.
This
is
all
for
a
reason.
C
So
let's
talk
about
how
bisque
works
here,
it
is
in
a
nutshell:
let's
just
imagine
a
scenario
you
want
to
buy
some
Bitcoin
right
and
you
want
to
do
it
in
exchange
for
euros.
Let's
say
so
in
this
terminology:
you're
a
buyer
of
Bitcoin,
looking
for
a
seller
of
Bitcoin
who
will
accept
your
euros
as
payments
so
to
complete
such
a
trade
using
bisque
you'd
follow
a
series
of
steps
similar
to
the
following.
C
First,
you
download
it
right.
So
you
go
to
our
website.
You
download,
bisque,
you
install
it
and
you'd
run
it
just
like
any
other
application
that
you'd
run
on
your
on
your
desktop
right.
The
second
thing
is
you
configure
bisque
with
your
euro
payment
account
details.
Now
this
might
look
antithetical
to
what
I
just
said
here.
You
are
typing
in
personal
information.
Information
about
your
bank
accounts.
Well,
keep
in
mind.
This
information
isn't
going
anywhere.
This
lives
locally,
only
in
bisque
until
the
time
that
you
choose
to
take
a
trade
with
some
particular
County
counterparty.
C
So
the
third
thing
is
that
you'd
then
go
look
through
bisques
offer
book
and
you'd
see
well
what
existing
offers
are
out
there.
It's
a
sell,
Bitcoin,
you
want
to
buy
it
so
who's
who's
out
there.
That
already
wants
to
sell,
and
maybe
you
find
an
offer
that
you
like,
and
if
you
don't
find
an
offer
that
you
like,
then
you
could
create
your
own.
C
The
next
steps
are
that
bisque
is
going
to
orchestrate
or
coordinate
the
process
of
you,
the
buyer
and
your
counterparty.
The
seller
working
together
to
go
through
a
manual
process
right,
bisque
is
integrating
with
essentially
a
legacy
set
of
systems,
see
banking
systems.
If
you
like
to
think
about
it,
that
way
and
they're
not
very
modern,
it's
not
easy
to
automate
sending
euros
through
a
banking
system
means
you're
gonna
have
to
log
into
your
banking
website
and
click
buttons
right.
So
bisque
is
gonna,
help
orchestrate
that
process,
but
bisque
isn't
going
to
do
it
itself.
C
So
this
is
what
we
mean
when
we
say
that
payments
happen
out
of
band
right
or
out
of
system
from
bisque,
but
bisque
helps
orchestrate
it.
So
you
can
see
that
process
here,
waiting
for
blockchain
confirmation,
that's
going
to
be
your
deposit
transaction
with
Bitcoin,
the
Bitcoin
being
traded
and
your
security
deposits
from
both
buyer
and
seller.
We'll
talk
more
about
that
in
a
second,
so
check.
That's
done!
You
maybe
wait
ten
minutes
for
that
to
start
payments.
C
So
that's
bisque
telling
you
the
buyer,
go
to
your
banking
website
log
in
and
send
1200
euros
to
this
I
bandwidth.
This
first
and
last
name
you've
gotten
just
enough
information
about
your
counterparty
to
settle
this
trade
right.
So
you
do
that
and
then
you
wait
right,
because
banks
are
slow
much
much
much
slower
than
blockchain.
So
much
much
slower
than
Bitcoin
right
might
take,
depending
on
the
payment
method.
It
might
take
an
hour
or
a
day
or
even
a
few
days
for
say
a
say,
per
transfer
like
we're
talking
about
here.
C
Okay
and
then
the
next
thing
is
that
the
seller
does
receive
your
your
payments
and
on
the
sellers
side
in
their
bisque
client.
They
click
a
button
that
says:
I
received
the
payment
right
then,
on
your
side,
you're
gonna
see
a
notification
from
disk
saying:
okay,
the
trade
is
complete,
the
seller
got
the
funds.
You
two
have
worked
together
to
release
the
Bitcoin
to
you,
the
buyer.
C
We'll
talk
a
little
bit
more
about
how
that
happens
in
a
second
and
the
trade
is
finished
and
you
can
withdraw
those
bitcoins
to
a
different
wallet
or
you
can
leave
it
in
bisque.
Bisque
is
also
a
complete
wallet,
so
that's
an
overview
of
the
process,
but
let's
break
that
down
a
little
bit
and
talk
about
how
trading
with
bisque
is
is
different
than
other
forms
of
trading
Bitcoin.
So
the
first
thing
is
that
there's
no
automatic
order
matching
right
when
you
use
a
centralized
exchange.
C
You
typically
say:
I
want
to
buy
this
much
Bitcoin
and
it
instantly
instantly
happens.
Your
account
is
credited
with
that
Bitcoin,
the
fiat
side
of
your
accounts
that
that
exchange
is
debited
for
that
amount
and
the
reason
that
that's
possible
is
because
of
automatic
order.
Matching
that
centralized
service
is
providing
a
lot
of
value
right.
Centralized
Bitcoin
exchanges
are
really
convenient
and
really
nice,
but
they're
doing
that,
because
they're
managing
that
that
offer
book
or
that
order
book
in
a
centralized
way.
So
bisk
doesn't
work
that
way
right.
C
It's
purely
peer-to-peer,
you're
looking
for
some
particular
persons
offer
to
sell
or
they're
gonna
take
your
offer
to
buy
or
whatever
it
is
so
no
automatic
order
matching
the
best
protocol
like
I
mentioned,
coordinates
out-of-band
fiat
payments,
so,
like
I
said,
you're
gonna
have
to
go
log
into
your
banking
website
or
whatever
other
payment
method.
You
two
have
agreed
on
and
ultimately
settlement
like
what
it
takes
to
complete
the
trade.
That's
what
I
mean
by
settlement.
C
It
takes
longer
with
bisque
that's
different,
but
in
return
the
trade-off
that
you're
making
is
that
it's
a
far
more
secure,
far
more
private
and
far
more
censorship
resistant
way
to
complete
that
trade.
So
if
that's
attractive
to
you,
you
would
want
to
use
bisque
right
if
you're
a
day
trader
who's
trading,
5,
10,
15
20
times
a
day,
bisque
wouldn't
be
a
very
friendly
platform
for
you.
C
You
would
want
to
use
something
centralized,
probably,
but
if
you're
trying
to
get
in
or
trying
to
get
out
of
Bitcoin
if
you're
trying
to
get
into
Bitcoin
for
the
first
time
say
right,
this
would
be
a
very
attractive
platform
for
people
who
are
privacy,
conscious,
okay,
so
how
does
bisque
actually
fulfill
these
things?
How
does
this
keep
your
funds
secure?
Well,
the
first
is
that
bisque
is
entirely
non-custodial.
What
does
that
mean?
It
means
we
never
ever
hold
on
to
your
funds.
This
is
like
the
prime
directive.
C
This
is
like
rule
number
one
in
Bitcoin.
If
you
don't
have
the
keys,
you
don't
have
the
Bitcoin
right.
You
never
ever
ever.
Give
your
bitcoin
away
to
somebody
else
to
a
trusted.
Third
party,
so
bisque
doesn't
violate
that
centralized
exchanges.
Do
bisque
respects
this
important
part
of
sort
of
bitcoins
philosophy.
If
bitcoins
motto
is
be
your
own
bank,
then
bisques
motto
is
be
your
own
exchange
right,
and
that
means
you've
got
to
hold
on
to
your
funds
the
whole
time
and
never
is
it
in
our
control
right.
C
But
if
you're
familiar
with
the
idea
of
escrow
like
when
you
buy
a
house,
you
make
this
very
expensive
purchase
and
you
don't
trust
the
person
that
you're
buying
the
house
from
to
just
hold
the
hundreds
of
thousands
of
euros.
So
you
put
that
with
an
escrow
company.
Usually
right
a
trusted
third
party.
Well,
one
thing
that
blockchain
technology
and
Bitcoin
in
particular
makes
possible
that
wasn't
really
possible.
C
C
The
final
thing
is
that
this
concludes
a
decentralized
arbitration
system
as
well
right.
It's
one
thing
to
design
a
system
like
this.
You
know
so
far.
We've
gone
through
the
happy
path.
Right
what
what
it
looks
like
when
it
goes
well,
but
what
happens
if
a
mistake
was
made
along
the
way?
What,
if?
What?
If
you
as
the
buyer,
sent
the
wrong
amount
to
the
seller
or
you,
you
accidentally
wrote
the
wrong
name
in
the
payment
details
or
you
sent
it
to
the
wrong
I
banner.
C
You
sent
it
too
late
or
you
never
sent
it
at
all
right.
What?
If
the
seller
never
clicks
that
button
that
says,
I
got
your
money,
even
though
you
sent
the
money
right,
so
all
kinds
of
mistakes
can
happen
and
of
course,
there
can
also
be
bad
actors
in
a
system
like
this.
So
these
are
the
kinds
of
things
that
no
amount
of
code
can
really
solve.
So
we
have
to
have
human
arbitration
in
a
system
like
this
and
that's
why
biscayne
incorporates
a
complete
decentralized
arbitration
system
as
well
to
handle
disputes?
C
C
Second,
is
that
every
bisque
application,
every
client
is
a
tor
hidden
service,
so
for
most
people
most
people
probably
haven't
run
out
tor
hidden
service,
probably
a
disproportionately
large
number
of
people
here
have,
but
most
people
will
never
actually
experience
running
a
tor
hidden
service,
but
with
bisque
it's
just
out
of
the
box
box.
It
works
right
and
there's
no
central
servers
or
databases
that
we're
maintaining
that
record
any
data.
C
Okay,
so
how
does
bisque
help
you
resist
censorship
right
or
how
is
bisque
censorship
resistant?
Well.
The
first
thing
is
that
we're
dealing
with
a
fully
decentralized,
even
a
fully
distributed,
peer-to-peer
network
right
again,
every
single
person
on
the
best
network
is
running
that
clients.
So
that's
a
fully
distributed
peer-to-peer
network
and
that's
on
its
own
pretty
hard
to
shut
down
right.
That's
the
nature
of
of
these
kinds
of
networks.
C
The
second
thing
is
that
bisque
inherits
in
a
way
tors
own
censorship,
resistant
resistance
right,
because
everybody's
running
a
tor
hidden
service
running
on
top
of
tor.
We
inherit
all
the
benefits
of
you
inherit
all
the
benefits
of
that,
and
the
third
thing
is
that
bisque
isn't
structured
as
a
company
or
other
kind
of
legal
entity.
It's
not
a
foundation.
It's
not
a
fair
I
know
it's
none
of
that.
C
It's
just
code,
so
bisque
is
just
code
that
individual
people
are
choosing
to
run
and
we
know
by
precedent
from
things
like
BitTorrent
say:
that's
pretty
hard
to
shut
down,
so
far
code
isn't
illegal
right
and
it's
up
to
all
of
us
to
keep
it
that
way
and
the
way
we
keep
it.
That
way
is
by
claiming
our
rights
and
running
code
like
this.
C
So
where
are
we
right?
What's
the
current
status
of
this?
It's
been
in
production
since
April
of
2016
we've
been
developing,
it
like
I,
said
since
basically,
just
after
Mount
GOx
failed.
So
that's
already
almost
four
years
in
development.
It
took
about
two
two
and
a
half
years
to
develop
and
test
it
completely
before
we
were
comfortable
going,
live
on
bitcoins
main
net
or
the
main
Bitcoin
blockchain,
but
we
did
that
in
April
of
2016.
C
So
that's
about
20
months
ago,
as
I
speak
and
there
there
are
you
just
looking
at
that's
the
monthly
charts
of
you
know
how
much
Bitcoin
moved
through
the
network
and
there's
20
bars
there
right
so
20
months
of
Biskind
production.
So
far,
and
during
that
time
we've
processed
thousands
of
trades
worth
millions
of
dollars
of
Bitcoin
rights
or
the
dollar
value
of
Bitcoin.
C
If
you
measure
it
that
way
and
we've
had
no
downtime
and
we've
had
no
major
incidents,
so
bisk
is
still
small,
very
small
by
comparison
to
the
biggest
centralized
exchanges
out
there
in
the
world.
But
we've
been
growing
steadily
and
this
chart
is
showing
you
again
the
US
dollar
value
of
all
the
Bitcoin.
That's
moved
through
the
exchange
at
the
current.
You
know:
exchange
rate
for
Bitcoin
to
US
dollars.
C
So
if
you
look
at
the
left
side
there
in
April
of
2016,
we
did
about
$30,000
worth
of
Bitcoin
trading,
otherwise
known
as
nothing
by
comparison
to
big
exchanges
right,
but
you
see
that
trend
line
moving
through
it.
We
doubled
that
that
volume
about
every
three
and
a
half
to
four
months
since
April
of
2016
and
that's
you
know
if
that's
actually
an
exponential
curve
and
we've
been
tracking
to
that
curve.
Pretty
well.
This
chart
that
you're
looking
at
is
up-to-date
as
of
September.
C
This
is
the
chart
from
the
last
two
months,
so
the
fully
accurate
chart
this
last
month
was
a
pretty
wild
ride.
We
went
from
doing
about
you
know,
$500,000
months,
to
doing
$500,000
days,
all
of
a
sudden
and
that's
due
to
a
few
reasons,
but
the
biggest
reason
is
just
everything:
that's
been
going
on
in
Bitcoin
lands.
C
So
if
you
follow
this
space,
you've
probably
heard
about
how
most,
if
not
all,
of
the
major
centralized
exchanges
have
just
been
totally
overwhelmed
by
you
know
the
the
influx
of
new
users
and
so
on
just
crumbling
under
the
under
the
load
of
you
know,
even
even
shutting
down
new
user
accounts
and
so
on
turning
people
away.
Well,
we
got
a
little
a
little
taste
of
that.
Fortunately,
we
didn't
shut
it
shut
anything
down.
We
didn't
turn
anybody
away.
C
We
were
actually
able
to
do
quite
a
bit
of
trading,
even
though
it
was
pretty
intense,
and
so
so,
let's
talk
about
how
bisque
is
funded
right.
How
do
we
keep
this
whole
thing
running?
It's
free
software
right,
like
you,
know,
both
free
as
in
beer
and
free
as
in
speech,
you
can
just
download
and
run
bisque
and
obviously
it's
you
know
a
GPL
licensed,
but
actually
trading
on
this
does
cost
something
right.
So
we
charge
trading
fees
and
where
those
trading
fees
go
are
directly
to
the
arbitrator's
right.
C
So
one
way
to
think
about
what
you're
paying
for
when
you
pay
to
trade
on
bisque
is
you're
paying
for
the
security
that
those
arbitrators
provide,
even
if
the
arbitrator
doesn't
have
anything
to
do
with
that
particular
trade.
Even
if
your
trade
is
a
kind
of
happy
path,
trade
you
never
would
have
engaged
in
that
trade
in
the
first
place.
C
You
know
we've
been
growing
and
and
and
making
a
bit
more
money
as
we
go,
but
it
hasn't
been
enough.
Maybe
we're
starting
to
turn
that
corner
now,
but
the
problem
is
that
there's
been
no
decentralized
way
to
compensate
all
the
other
contributors
that
that
do
all
of
the
other
things
with
bisque
right.
C
All
of
the
coding,
all
of
the
you
know,
monitoring,
I
or
C
and
Reddit,
and
you
know
updating
documentation
and
all
of
the
things
that
aren't
arbitration
there's
been
no
clear
way
to
compensate
those
those
contributors
in
a
decentralized
way
and
I'm
mentioning
that
here,
because
I'm
going
to
talk
in
a
moment
about
the
bisque
Dow
right
so
more
on
that
in
a
moment,
but
these
are
some
of
the
issues
that
we're
currently
dealing
with
and
then
we've
designed
solutions
to,
but
that
are
in
the
process
of
being
rolled
out.
So
that's
funding
right.
C
So
how
is
this
governed?
How
has
bisque
been
governed
so
far?
Right
again,
this
is
all
changing
right
now,
but
up
until
very
recently,
it's
been
a
small
team
of
contributors.
It's
been
centralized
maintenance,
arbitrate
excuse
me
administration
and
operation.
What
does
that
mean?
It
just
means
that
small
group
of
developers
and
contributors
are
the
ones
that
are
responsible
for
all
the
code,
changes
and
so
on.
The
founders
have
primarily
been
the
key
decision-makers
right
and
there's
just
a
couple
of
founders.
So
that's
already
quite
a
bit
of
centralization
right.
C
These
are
all
risks
when
it
comes
to
censorship,
resistance
right
when
you
have
centralization
of
decision-making
and
funding,
and
so
on.
That
makes
you
weak
with
regard
to
censorship
resistance.
So
that's
why
it's
so
important
for
us
to
solve
this
problem,
and
so
you
can
think
about
it.
This
way
right,
bisques
technology
is
decentralized,
really
quite
well
decentralized,
but
bisques
governance
hasn't
been
so
far.
This
bisques
government
governance
is
largely
largely
been
centralized.
C
So
where
are
we
in
the
mission
that
I
talked
about
earlier
then
I
said
our
mission
is
to
is
to
provide
secure
private
censorship,
resistance
way,
you
know
to
exchange
Bitcoin
for
for
national
and
crypto
currencies.
Well,
I
think
it's
roughly
safe
to
check
the
box
on
secure
and
private
right.
This
is
never
perfect.
C
It
can
always
be
better,
but
we
think
we've
done
a
pretty
good
job
of
that,
certainly
better
than
the
alternatives
that
are
out
there,
but
with
regard
to
censorship,
resistance,
like
I,
say,
there's
work
to
be
done,
so
the
the
peer-to-peer
network
over
tor
right
that
goes
a
long
way
towards
censorship,
resistance,
that's
great,
but
decentralized,
funding.
Up
until
very
recently,
we
hadn't
made
a
lot
of
progress
in
that
and
decentralized
governance.
C
We
hadn't
made
a
lot
of
progress
in
that,
so
what
we
need
now
and
what
we're
up
to
now
is
continued
trading
volume
growth
right.
If
a
growing
number
of
people
don't
continue
to
use
bisk,
then
it'll
probably
never
become
economically
viable.
Right,
it'll
always
be
a
very
tiny,
just
open
source
project
kind
of
struggling
to
get
by.
But
the
good
news
is
you've
seen
that
trend
line,
it
seems
to
be
going
pretty
well.
C
The
second
thing-
and
this
is
really
the
most
important
thing,
especially
to
an
audience
like
this-
is
to
scale
up
contributions
right
scale
up
the
group
of
people
that
are
contributing
to
bisk
working
on
bisk
working
with
us
through
github,
and
you
know,
sort
of
all
of
the
normal
state-of-the-art
tools
in
order
to
obviously
improve
bisk,
but
to
help
continuing
fostering
that
growth
right.
The
bisque
that
we
have
today
wouldn't
be
able
to
scale
up
10x
100x
right.
C
C
We
need
a
decentralized
compensation
model
to
incentivize
all
those
other
contributors
that
I
just
talked
about,
and
we
need
a
decentralized
responsibility
model
to
avoid
censorship
right.
So
if
there's
just
one
or
two
heads
to
cut
off,
then
there's
a
decent
risk
that
they
will
be
cut
off,
but
if
there's
a
whole
bunch
of
people
that
are
responsible
for
you
know
all
the
pieces
and
parts
of
what
it
means
to
operate
and
administer
and
maintain
bisque
and
its
network,
then
that's
a
whole
lot
harder
to
shutdown.
C
C
What
is
the
bisque
Dao,
how
many
people
have
heard
of
this
term?
Dao
yeah?
Okay,
that's
like
approaching
1/2!
For
those
that
don't
know
it
stands
for
decentralized,
autonomous
organization,
and
this
is
this
is
an
emerging
concept
in
the
in
the
kind
of
crypto
space
right.
You
can
think
of
it
as
what
happens
to
the
idea
of
corporations.
When
you
have
things
like
cryptocurrency
in
the
mix,
we
start
to
see
a
kind
of
new
economic
entity
start
to
show
up,
corporations
we're
and
we're
an
innovation
three
or
four
hundred
years
ago.
C
So
this
talk
that
I'm
giving
here
is
a
modified
version
of
a
longer
talk
that
I
gave
some
months
ago
in
in
Prague,
and
so
there's
a
number
of
slides
here
that
I'm
going
to
move
through
pretty
quickly
because
I
want
to
make
sure
that
there's
time
for
for
questions-
and
we
just
have
about
10
more
minutes
but
for
those
that
are
interested
right.
You've
now
seen
the
overview
of
bisk.
Why
it
exists,
what
it's
for
a
little
bit
about
how
it
feels
to
use
it.
C
What
I'm
going
to
talk
about
now
is
a
very
quick
overview
of
the
Dow
it'll
be
a
little
bit
like
kind
of
breakneck
pace.
But
if
you
want
to
find
out
more,
there
will
be
a
link
at
the
end
of
this
to
a
paper
that
we
call
phase
zero
a
plan
for
bootstrapping
the
BIST
down.
If
you
want
to
dig
into
that,
that's
a
that's,
a
great
read
and
you
can
find
out
all
about
it
and
then
you
can
come
come
talk
to
us
about
it
and
hopefully
contribute
and
participate.
C
But
in
any
case
how
this
Dow
works.
Is
we
introduce
a
new
token
and
we
call
bsq,
which
is
kind
of
like
our
name?
B
is
Q's
disks
name,
but
BS.
Q
is
a
token.
That's
designed
to
facilitate
a
transfer
of
value
from
traders.
Ie
users
of
the
platform,
people
who
find
bisque
valuable,
bisque
bsq
is
designed
to
transfer
value
from
traders
who
use
bisque
to
the
contributors
who
are
maintaining
it
and
the
way
that
bisque
works.
That
bsq
works
is
that
the
25
Bitcoin
that
supporters
have
donated
to
the
project
since
its
inception.
C
C
This
this
process
is
called
this
idea
of
bsq
it's
a
colored
coin,
and
some
of
me
some
may
have
heard
of
this-
that's
very
different
than
the
tokens
and
kind
of
ICO
stuff
that
we
see
today
so
commonly
a
colored
coin
in
the
colored
coin,
on
top
of
Bitcoin
actually
is
Bitcoin,
but
with
additional
validation
rules,
additional
things
being
possible
with
that
coin.
So
again,
I
won't
go
into
a
lot
of
detail,
but
it's
very
important
to
say
that
this
is
not
an
ICO.
C
There
is
no
crowd
sale.
There
is
no
pre
mind.
There
is
no
crowdfunding
none
of
that
stuff.
We
simply
don't
need
it.
So
again,
it's
a
token
designed
to
facilitate
a
transfer
of
value
between
the
traders
who
use
bisque
and
the
contributors
who
maintain
it
and
I'll
just
very
quickly.
Click
through
this
again
I
want
to
be
able
to
take
questions.
C
Let's
see,
the
main
problem
is
that
the
flow
of
funds
goes
only
to
arbitrators,
like
I
talked
about
and
there's
no
way
to
compensate
contributors
in
a
decentralized
way
right
now,
so
that's
where
bsq
comes
in
and
we
have
five
functions
or
utilities.
Of
this
token
and
the
first
one
is
trading
right,
people
can
trade
bsq
like
if
you're
you
know,
you
can
trade
it
for
dollars
or
euros
or
what
or
Bitcoin
right
on
bisque.
Of
course,
that's
where
you
can
trade
it.
The
second
function
is
spending
it.
C
The
third
function
is
earning
right,
so
contributors
submit
what
we
call
compensation
requests
for
a
given
amount
of
bsq
to
compensate
them
for
whatever
they
did
that
month
and
the
fourth
function
is
voting.
So
people
who
already
have
bsq
use
that
bsq
as
a
kind
of
voting
chip,
that's
the
fourth
function
of
the
token,
and
they
use
that
voting
to
green-light
or
to
reject
compensation
requests.
So
stakeholders
decide
who
gets
new
bsq
and
the
fifth
function
is
bonding
so
for
roles
in
the
Dow
that
are
inherently
high
trust
right,
something
like
an
arbitrator.
C
That's
a
very
high
trust
role.
A
bad
actor
arbitrator
could
wreak
terrible
havoc
on
bisque
and
its
network,
so
we
have
so.
The
fifth
function
of
BS
Q
is
that
high
trust
roles
can
bond
in
BS
q
can
put
up
a
very
large
amount
of
BS
q
and
that
BS
q
can
be
confiscated
if
that
arbitrators,
say
or
other
kind
of
bonded
contributor
trusted
role
if
they
act
badly.
C
Okay,
so
again
a
whole
lot
here
that
I'm
moving
very
quickly
through
that
you
can
find
it
all
in
the
paper
and
I'll
skip
the
bid
on
issuance
and
destruction,
even
though
it's
my
favorite
slide
in
this
whole
thing,
no
time
to
talk
about
it.
Okay,
so
let
me
leave
it
at
that.
You
can
find
again.
All
of
this
is
in
the
paper.
This
is
adapted
directly
from
the
paper
that
I
mentioned,
and
let
me
just
go
to
this
last
slide,
where
you
can
find
out
more
so
we're
bisk
underscore
network
on
twitter.
C
I'm
c-beams
on
twitter
and,
of
course
you
can
download
it
if
you
want
to
join
us
in
slack.
Come
hang
out
talk
to
us
about
anything.
You
like
there's
an
there's,
a
link
for
that.
The
phase
zero
paper
is
that
link
so
just
bisque,
dot,
Network,
slash,
phase,
zero
and,
of
course,
we're
on
github
at
bisque
network.
So
that's
I
think
we
have
five.
Maybe
ten
minutes,
five
minutes:
okay,
yeah,
so
booth,
the
first.
What's.
A
C
You
set
it
yes,
No
yeah,
so
so
in
the
if
you,
if
you
caught
it
in
the
in
the
slide
that
I
was
showing
for
say,
portrayed
x',
there's
a
number
of
days
that
you
have
right
to
settle
the
trade
that's
fixed,
so
the
seller
can't
specify
that,
but
it's
fixed
at
you
know
five
days
or
whatever.
It
is
simply
because
that's
what
we
found
works
well
over
time.
The.
C
D
C
Do
yeah
so
so
I
focused
on
talking
about
crypto,
Fiat
right
or
a
Bitcoin
to
u.s.
dollars,
Bitcoin
the
Euro
that
kind
of
that
kind
of
trading,
because
that's
really
the
core
of
Bitcoin,
like
the
really
the
core
of
the
mission,
is
to
give
people.
There
has
to
be
one
good
on-ramp
into
Bitcoin
from
the
fiat
world
and
that
really
doesn't
exist
today
that
the
only
thing
you
can
do
is
go
to
a
Satoshi
square
or
have
a
friend
or
a
family
member
who
already
has
Bitcoin.
C
If
you
do
that,
if
you
do
something
like
in
person
like
that,
then
you
can
have
a
reasonably
good
sort
of
privacy
and
security
profile
in
that
initial
trade
to
get
into
Bitcoin.
But
there
has
been
no
good
way
to
do
that
online,
and
so
that's
really
why
bisque
exists,
but
once
we
had
done
that,
then
it
was
pretty
easy
to
add
in
crypto
to
crypto
trading
as
well,
because
if
you
think
about
it,
like
I,
said
payment,
settling
the
payment
happens,
out-of-band
right
so
you're
going
to
your
bank
website
and
so
on.
C
Well,
that's
for
a
Bitcoin
to
euro
trade.
Well,
if
you
want
to
do
a
Bitcoin
to
Manero
trade,
Manero
is
really
just
a
different
payment
method
right,
so
you're
gonna
settle
the
Monaro
side
outside
out-of-band
from
disk
as
well.
So
that's
kind
of
a
good
way
to
think
about
it,
but
the
the
constraint
there
is
that
one
side
of
every
trade
is
Bitcoin,
so
you
know
go
I.
Had
someone
asked
me
today
about
doing
a
you
know,
an
ether
to
doge
doge
coin
trade
on
bisque
and
that's
not
supported.
C
E
E
E
E
C
So
we
so
this
does
have
an
API
that
can
automate
a
lot
of
things,
but
there's
not
we
don't
have
we
don't
have
a
second.
You
gotta
take
the
mic
away
from
there
man,
but
we
don't
have.
We
don't
have
you
know
sort
of
like
bindings
into
all
the
different
banks
and
stuff
like
that
again,
mostly,
they
don't
have
api's
to
do
it,
but
even
if
they
do,
we
don't
have
that
support.
That
could
be
something
that
somebody
contributes
for
banks
that
do
support
automated
access,
but
we
don't
have
it
yet.
Anybody
else
yeah.
F
C
So
the
question
is:
when
I
use
the
word
bonding
with
bsq
for
these
high
trust
roles
under
the
bisque
Dow,
do
I
mean
like
steak
or
staking
or
having
something
at
stake.
That's
that's
another
term
in
the
industry
that
people
use
is
staking
yes,
I
mean
the
same
thing.
We
call
it
bonding
because
there's
a
long
history
of
you
know
say:
plumbers
guild.
Well,
you
know
bonded
plumbers
right
or
bonded
taxi
drivers
or
whatever
it
is.
That's
a
common
term
of
art.