►
From YouTube: Intro to bisq
Description
Ever wonder how to buy bitcoins privately? Heard of bisq network but don't know how it works? In this video I explain it from a high level perspective.
References:
docs.bisq.network/trading-rules
bisq.wiki/Arbitration
bisq.wiki/Mediation
keybase.io/team/bisq
MISTAKES:
The safeguard transaction is not optional in bisq, it's mandatory. One of the slides said it was optional; I meant that it's generally optional in bitcoin itself, but that created an ambiguity because it makes it sound like it's optional in bisq. Bisq makes the safeguard transaction a mandatory part of their trade protocol by refusing to trade with anyone who doesn't sign it.
Bisq is actively working to reduce trust in arbitrators and is considering at least one proposal to get rid of them.
Dispute funds go to the bisq donation address, but if an arbitrator reimburses someone, he doesn't get compensated automatically. Instead, there is a process of approval among bisq contributors which involves voting for who controls the donation address. This helps reduce the amoutn of trust placed in an arbitrator.
A
In
today's
video
I
will
explain
what
bisc
is
and
how
its
trading
protocol
works.
Bisque
is
open
source
exchange
software
for
bitcoin
and,
in
my
opinion,
it's
the
best
way
to
buy
bitcoins
privately.
When
you
use
bisc,
there
is
no
trading
company
involved.
You
never
have
to
give
anyone
your
personal
information,
and
you
can
use
it
with
your
own
bitcoin
wallet
rather
than
trusting
your
money
with
somebody
else.
A
Installing
bisque
and
placing
an
order
takes
only
a
few
seconds,
there's
no
waiting
period,
no
identity,
verification
and
you
can
immediately
buy
as
much
bitcoin
as
you
want.
Unlike
a
regular
bitcoin
exchange,
there's
no
one
standing
between
you
and
the
person
you're
trading
with
like
bitcoin.
There
are
no
central
servers,
coordinating
information
and
requiring
your
trust.
A
A
I
do
want
to
mention
that
the
trade
protocol
I
describe
in
this
video
probably
won't
be
the
trade
protocol
forever.
Bisque
is
constantly
being
updated
by
developers
and
there
are
already
plans
to
modify
the
trade
protocol
in
version
2
to
support
new
payment
methods
like
bitcoin's
lightning
network,
but
for
right
now
in
july
2020.
This
is
how
bisque
works
I'll
start
by
laying
a
foundation
for
how
you
might
design
bisque
from
the
ground
up.
A
So
let's
say
you
wanted
to
create
some
trading
software
built
on
bitcoin.
How
might
you
go
about
it?
Well,
here's
a
naive
approach
that
wouldn't
be
very
safe
and
wouldn't
really
work.
You
could
write
a
program
that
announces
to
the
internet.
I
want
to
buy
some
amount
of
bitcoin,
let's
say
five
hundred
dollars
who
wants
to
sell
then
someone
else
who
is
running
the
same
trading
software?
Let's
call
him
bob:
could
scan
the
internet,
find
your
offer
and
connect
to
your
computer
to
say:
hey,
I'm
willing
to
sell
you
500
in
bitcoin.
A
Here's
my
po
box,
send
me
a
money
order
for
500,
along
with
a
bitcoin
address,
and
I
promise
I'll
send
500
in
bitcoins
to
your
bitcoin
address
as
soon
as
I
cash
the
money
order.
Now.
Why
did
I
say
this?
Wouldn't
work
very
well.
Well,
because
what
happens?
If
you
send
bob
the
money
order
and
he
runs
away
with
it,
you
might
sue
him
to
get
your
money
back,
but
then
you
have
to
go
to
court
and
spend
a
lot
of
time
explaining
what
happened
and
providing
evidence
and
is
just
a
huge
pain.
A
We
can
do
better.
What
if
we
have
bob
send
the
bitcoins
to
your
bitcoin
address
first
and
then
you
send
him
a
money
order.
Well
that
also
won't
work,
because
some
people
won't
ever
send
the
money
order.
The
buyer
and
the
seller
should
both
be
unable
to
cheat
the
other
person
by
running
away
with
their
money.
A
So
it
seems
like
just
using
a
regular
bitcoin
wallet
won't
work.
If
I
send
the
money
order,
first
bob
may
never
send
the
bitcoins.
If
bob
sends
the
bitcoins
first,
I
may
never
send
the
money
order,
but
wait.
Here's
an
idea.
What,
if
we
could
do
both
at
the
same
time,
bitcoin's
got
a
built-in
programming
language,
bitcoin
script
and
one
of
the
tools
it
offers
us
is
called
a
multi-signature
address.
A
Let's
see
if
that
can
help
us
do
both
parts
of
the
trade.
At
the
same
time,
there
are
several
kinds
of
multi-sig
addresses
supported
by
bitcoin
script,
and
the
one
bisc
uses
is
called
a
two
of
two
address:
it's
used
in
the
lightning
network
as
well
and
in
some
types
of
escrow
contracts
and
oracle
protocols
which
I'll
hopefully
go
over
in
future
videos.
A
What
does
a
202
address
do?
Well,
if
you
put
money
in
a
202
address
with
someone,
you
can
only
spend
that
money.
If
both
of
you
agree
on
how
to
spend
it,
there
are
two
people
who
hold
private
keys
to
a
two
of
two
address
and
if
just
one
of
them
wants
to
move
money
out
of
that
address,
he
can't
do
it.
Both
key
holders
need
to
agree
on
what
address
or
addresses
to
send
the
money
to.
A
We
can
do
something
interesting
with
that
suppose
that
bob
sends
the
five
hundred
dollars
in
bitcoins
into
a
two
of
two
address
where
he
controls
one
key
and
you
control
the
other.
Well
now
the
money
is
stuck
until
you
both
agree.
That
bob
has
cashed
his
money
order.
Bob
can't
get
his
bitcoins
back
without
your
help
and
you
can't
get
the
bitcoins
out
of
the
address
and
into
your
own
wallet
without
bob's
help.
So
neither
of
you
is
at
an
advantage
at
this
point
now.
A
Let's
suppose
that
once
you're
at
this
stage
where
the
bitcoins
are
in
the
202
address,
you
send
bob
a
money
order
and
he
cashes
it
now
he's
happy
because
he's
got
his
dollars
and
there's
no
way
he
can
get
the
bitcoins
back.
So
he
releases
them
to
you
right,
there's
a
problem
with
that.
First,
what
if
you
send
bob
the
money
order,
and
then
he
holds
your
bitcoins
hostage
by
demanding
even
more
money
than
you
agreed
to
bob?
A
Could
cash
your
money
order
and
then
not
agree
to
release
the
bitcoins
from
the
2f2
address
until
you
send
him
another
100,
he
can't
get
his
bitcoins
back
so
in
the
worst
case
scenario
he's
out
500
in
bitcoin,
but
he
also
got
500
us
dollars.
So
it's
a
wash
and
in
the
best
case
scenario
for
bob,
you
do
send
the
ransom
money
and
he
gets
that
extra
money.
A
What
are
your
options?
Well,
you
could
try,
notifying
the
police,
you
do
know
wherever
he
said
to
mail.
Your
money
order
to
and
the
police
could
maybe
use
that
as
a
lead
to
find
him.
But
if
bisque
worked
this
way,
some
scammers
would
get
away
with
theft.
They
might
not
usually
make
any
money
doing
this,
but
they
also
don't
usually
lose
anything
and
if
they
only
win,
sometimes
it's
still
a
profitable
scam.
A
A
A
A
Each
of
you
knows
that
if
you
don't
follow
through
with
the
trade
you're
likely
to
lose
money,
at
least
in
the
form
of
your
collateral
in
the
first
half
of
the
trade,
bob
puts
money
into
the
202
address,
and
you
have
the
power
to
burn
that
money
along
with
bob's
collateral
by
not
sending
him
a
money
order,
but
you'll
lose
money
too.
Unless
you
can
convince
bob
to
cooperate
with
you,
which
will
only
work
occasionally,
this
means
your
default
scenario.
A
A
He
can
try
to
hold
your
money
hostage
but,
like
I
said
earlier,
that
will
only
work
some
of
the
time,
which
means
that
in
general,
cheating
is
usually
going
to
be
unprofitable
for
bob
he
is
unlikely
to
make
a
profit
in
the
long
run
if
he
usually
loses
money
when
he
cheats-
and
that
means
the
best
option
for
bob
is
to
release
the
bitcoins
to
you
and
the
way
the
script
is
set
up
through
this
method.
He
also
gets
his
collateral
back.
A
It
incentivizes
both
parties
to
cooperate
because
they
don't
want
to
lose
money
on
the
trade,
and
this
ensures
that
almost
all
trades
go
off
without
a
hitch,
but
even
though
this
protection
would,
in
my
opinion,
probably
work
by
itself,
bisque
does
something
more.
It
builds
on
this
foundation
by
introducing
an
additional
protection
when
you
set
up
a
2
of
2
address.
There's
a
neat
trick.
You
can
do
before
anyone
ever
sends
any
money
into
a
2
of
2
address.
A
Both
keyholders
can
optionally
agree
to
co-sign
a
transaction
which
gives
either
party
the
right
to
send
any
money
that
ends
up
in
the
202
address
to
a
predetermined
address.
This
transaction
acts
like
a
safeguard
instead
of
the
money
getting
burned
and
staying
in
that
202
address
forever,
with
no
one
ever
able
to
access
it.
A
Every
computer
that
runs
bisque
software
refuses
to
trade
with
anyone
who
doesn't
agree
to
co-sign
this
safeguard
transaction,
and
where
does
the
safeguard
transaction
send
the
money?
If
it's
used
in
the
event
of
a
dispute,
it
gives
either
party
the
right
to
send
the
whole
value
of
the
trade
to
a
donation
address
controlled
by
one
of
the
best
developers.
A
I
want
to
pause
here
before
moving
on
so
that
I
can
emphasize
something
it
might
sound
like
this.
Safeguard
transaction
is
just
a
way
for
best
developers
to
get
free
money
from
trade
disputes,
but
that's
not
quite
correct,
there's
an
additional
protection
so
that
that
doesn't
happen
before
a
trade
dispute
ever
gets
to
the
part
where
either
party
sees
the
button
to
send
the
money
to
the
best
donation
address,
their
computers
will
automatically
contact
a
volunteer
for
bisque
and
tell
him
or
her
hey.
There's
there
was
a
dispute
during
our
transaction.
A
A
Only
the
two
traders
have
control
of
the
funds,
because
it's
a
two
of
two
address
and
they
are
the
two
key
holders.
But
the
mediator
can
listen
to
both
sides
and
recommend
a
solution
depending
on
the
situation.
He
might
recommend
different
options.
For
example,
if
the
money
order
hasn't
been
cashed,
yet
he
might
recommend
that
the
person
who
wrote
the
money
order
call
the
issuer
and
void
it
once
the
buyer
is
satisfied
that
he
won't
lose
any
money
now
that
the
money
order
is
no
good.
A
The
mediator
can
then
recommend
that
both
parties
sign
a
transaction
setting.
Everything
back
to
normal,
the
buyer
will
get
his
collateral
back
and
the
seller
will
get
his
collateral
back
as
well
as
the
bitcoins
he
put
into
the
202
address,
and
then
they
can
try
the
trade
again
with
someone
else
or
choose
to
trade
elsewhere.
A
A
recommendation
like
this
won't
work
in
all
situations,
such
as.
If
the
money
order
has
already
been
cashed
and
the
recipient
is
just
acting
fraudulently,
but
it
is
an
additional
layer
of
protection
so
that
not
everything
goes
straight
to
the
best
developers.
Whenever
there's
a
dispute,
a
round
of
communication
with
a
neutral
third
party,
a
mediator
can
help
resolve
this
stuff
before
it
escalates
to
the
point
of
sending
the
money
to
the
disk
donation
fund.
A
Well,
first
of
all,
the
bus
donation
fund
collects
money
from
lots
of
people,
not
just
trade
disputes,
but
when
it
receives
money
due
to
a
trade
dispute,
the
bisque
developers
send
in
another
volunteer
called
an
arbitrator.
The
arbitrator
is
similar
to
a
mediator
in
that
he
listens
to
both
sides.
Just
like
the
mediator
did.
The
difference
is
once
he
decides
who
he
thinks
is
in
the
right
he
will
out
of
his
own
pocket,
choose
to
reimburse
one
party
or
the
other,
or
he
may
decide
to
split
up
the
reimbursement.
A
A
A
Let's
suppose
that,
in
the
future,
arbitrators
and
mediators
get
regulated
by
a
government
that
wants
to
hurt
bisc
and
turn
it
into
a
centralized
exchange.
What
could
we
do
to
protect
it
and
make
it
decentralized
again?
Well,
if
that
happened,
the
project
could
be
forked
to
eliminate
the
role
of
mediators
and
arbitrators
and
bisque
would
still
work.
A
If
you
start
volunteering
as
a
mediator
or
an
arbitrator,
you
can
apply
for
reimbursements
for
your
volunteer
hours
from
the
best
donation
fund
and
the
developer,
who
controls
that
address
may
grant
it
to
you
for
more
information
about
that
check
out
the
references
at
the
end,
particularly
the
bisque
channel,
on
key
base
messenger
throughout
this
video.
I've
sung
the
praises
of
bisque
and
I
think
it
deserves
high
praise
because,
in
my
opinion,
it
is
the
best
most
private
way
to
buy
bitcoins
available,
but
I
also
want
you
to
know
some
of
the
pitfalls.
A
Bisque
is
not
perfect.
One
of
the
downsides
of
bisque
is
that
the
trade
protocol
is
a
little
confusing
at
its
foundation.
It
could
rest
entirely
on
incentivized
cooperation,
but
instead
there's
also
a
mediation
and
arbitration
process
in
the
event
of
a
dispute.
There's
also
the
issue
of
collateral.
You
can't
really
buy
your
first
bitcoins
on
bisc
because
you
have
to
already
have
enough
bitcoins
to
put
up
collateral
for
your
trade.
A
A
A
The
injured
party
would
be
able
to
complain
and
let
everyone
know
their
side
of
the
story,
but
this
whole
scenario
seems
to
me
to
open
up
a
potential
attack
vector
for
people
who
don't
like
bisque,
to
try
to
coordinate
scenarios
that
injure
the
reputation
of
the
project.
Finding
some
way
to
address.
This
would
be
a
good
thing
to
do
right
now,
in
my
opinion.