Hello guys,
I was looking some crypto to invest, then found bitbay and get excited this currency fundaments and also the recently market growth. After this, I've decided to buy some and hold.
However, I've got some doubts about how BAY can handle about common marketplacess existent problems and the specifics decentralized marketplace challenges. Lets use ebay as parameter.
On ebay we have a lot of dishonest people (buyers/sellers). Its very common the ebay staff intervention to solve many kind of problems with transactions and many times those problems aren't solved.
The honest people of the ebay community (buyers/sellers) have a certain security about transaction and sales, even the problem was caused by thirds (like post offices, etc). This security is what bring a mass of buyers and big sellers to ebay plataform.
If to decentralized need to attract big sellers and a large mass of buyers to be successful, how bitbay can do this if the envolved have to trust on each other honesty? How bitbay system can force a fair solution about the transactions problem? Who will judge who is right? If I buy some product from a chinese seller and I don't receive, on my side "never received the product" on his side "I sent", who will prevail?
I know bitbay has a qualification system but this is enough to bring feeling of safety to sellers/buyers?
I still excited about bitbay, my intention here is just ask questions that I made to myself.
BitBay uses double deposit escrow (DDE) in addition to a reputation system.
Default for DDE is that both buyer and seller put up a deposit that is 100% the value og the transaction. If everything goes smoth, they will release (simultaniously) the deposit. If one of them tries to cheat, the deposit will not be released, and the scammer has gained nothing.
Thanks for your explanation.
I've actually read about this but really don't know if it will works in major situations, because sellers and buyers have too freeze some amount of capital to warranty the transaction.
Just imagining as a seller point of view: if I want to grow my salles, I need liquidity of my capital fast as possible, if I do some business that last some time to be completed and until it's completely done my money will be frozen, why use this plataform?
Also, if both parts don't release their deposit, what will happen to the warranty bays?
Quote from Dave's interview on this same question, hope this helps (I was wondering how that worked)....
CCN — How can there be no arbiter? What happens when there are disputes?
DZ — It is probably easiest to start a comparison by looking at the way EBay handles disputes. On EBay, if you are the seller, and the buyer has a complaint, EBay always sides with the buyer. If the buyer said something was not what they were expecting for any reason, Ebay forces the seller to give a full refund, and in addition pay for return shipping, no matter what the truth is.
Alternatively, BitBay has unbreakable contracts where both the buyer and seller make a deposit as part of the contract. If there are unresolvable problems, the deposits on the contract for both parties are lost. People either work together to resolve any issues, or both parties lose. When everything works out, both parties close the contract and the deposits are returned.
