When the trust comes into place decentralization lose its flavor. If it is about chosen escrow then either I'll do the trade on BitcoinTalk marketplace using a forum escrow or will use a eBay type site that is legacy centralized. When the volume of sell goes up, manual escrow system becomes obsolete.
Centralized escrow has proven to be vulnerable as there is one failure point where funds can be stolen by governments(silk Road) or either hackers or the black market operators(Too many examples to cite).So what exactly is the problem with a reputation based arbitration market?
Because then reputation will be sold, like u see on BitcoinTalk. If u r not aware, check the Digital Goods section of this forum. Moreover, manual escrows are not a feasible solution for high trade volume.
By using proof-of-burn https://blog.openbazaar.org/proof-of-burn-and-reputation-pledges/
Can u please tell me the difference between Proof of Burn and Buying Reputation ? If reputation is bought, NOT earned, it'll also be SOLD... effectively jeopardizing the whole system. In a centralized marketplace like eBay, reputation is of highest importance to them because their reputation is not in competition within the system but outside of the system. In a de-centralized marketplace, the scenario will be different. Escrows are part of the free market supply-demand and hence reputation will itself become a commodity, leading to the formation of a reputation buying/selling system. A stable marketplace cant run like this... though I'm not sure about the black market dynamics.
