Topic: Preventing fraud and scams and building reputation for new users - page 2. (Read 6028 times)

We need a way to do business with new users that have little or no reputation or history, but that will also make it very difficult or expensive for scammers to rip peopel off.

Something a little better than otc-web of trust( because they're new users, no one trusts them)

Im thinking of a bondbail system, where for a user to get a bonded id they would deposit btc that would be kept. Traders could then refuse to do business with someone who doesn't have a bail of at least 1/3 of the amount of the transaction. So that if the user cheats they lose their bail.

This should make it more expensive for scammers to cheat people, that is, make it more expensive for them to get back into the trading system after cheating someone( they might make some profit but not much).

Traders who want absolute guarantees could require a bond equal to the size of the trade, so that if the cheater ... cheats, they make no profit.

Usefull idea?

Any other ideas? The goal is to put a cost to entering into trade with other users, a deposit. Good users want to keep their deposit so won't cheat, bad users cant make anymoney if thry have to pay to trade, or they lose money by cheating ( bail larger than trade amount?). How to remove the economic incentives of scamming? While allowing new users to join?