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Interesting. this is the first time I have run across this project. It actually makes the most sense out of everything I had been researching this past week.
I watched the video and read most of the documentation but have a few questions:
I am going to do more research on this subject but don't you need a payment processor or a financial institution to initiate SEPA transfers? How does the P2P system do this?
Does the P2P software confirm that fiat has been sent to the proper trader or does the receiver do that or both? If the software does, then how does it know this?
Everybody that has tried to do ACH runs into the same problems, what is the difference between the too systems that makes SEPA more secure? European finance seems to have been ahead of the U.S. in the area for security for such things credit and debit cards. Is the U.S. regulation too customer friendly that makes charging back the de facto policy when a customer complains?
I'm not lazy and am somewhat familiar with this new website called Google, so I will find the answers too. It has always been my impression and my friends from our stints in Europe and other places that U.S. finance is far more heavily regulated in both traditional banking and investments so I am interested how these systems can be integrated in crypto. Everything I have been looking at for ideas has some sort of fatal flaw. It still seems to atop the the traditional system or is fairy dust like maintaining pegs to the dollar. Microsoft probably opened up a can of worms backing Bitshares for instance and so is everybody pushing it. It is just that these are too small for regulators to worry about for now and legal issues far from resolved. So, something like this definitely has a market.
One area that might be a problem is some sort of liability for the arbitrators, a blanket Arbitrators, Judges & Mediators Errors and Omissions Insurance (E&O) would cover that and doesn't cover fraud by them. It could be paid for some how by fees, cover legal costs they might incur and can probably be done through some sort of real world trust fairly cheap. So, It can save somebody a headache down the road.
I watched the video and read most of the documentation but have a few questions:
I am going to do more research on this subject but don't you need a payment processor or a financial institution to initiate SEPA transfers? How does the P2P system do this?
Does the P2P software confirm that fiat has been sent to the proper trader or does the receiver do that or both? If the software does, then how does it know this?
Everybody that has tried to do ACH runs into the same problems, what is the difference between the too systems that makes SEPA more secure? European finance seems to have been ahead of the U.S. in the area for security for such things credit and debit cards. Is the U.S. regulation too customer friendly that makes charging back the de facto policy when a customer complains?
I'm not lazy and am somewhat familiar with this new website called Google, so I will find the answers too. It has always been my impression and my friends from our stints in Europe and other places that U.S. finance is far more heavily regulated in both traditional banking and investments so I am interested how these systems can be integrated in crypto. Everything I have been looking at for ideas has some sort of fatal flaw. It still seems to atop the the traditional system or is fairy dust like maintaining pegs to the dollar. Microsoft probably opened up a can of worms backing Bitshares for instance and so is everybody pushing it. It is just that these are too small for regulators to worry about for now and legal issues far from resolved. So, something like this definitely has a market.
One area that might be a problem is some sort of liability for the arbitrators, a blanket Arbitrators, Judges & Mediators Errors and Omissions Insurance (E&O) would cover that and doesn't cover fraud by them. It could be paid for some how by fees, cover legal costs they might incur and can probably be done through some sort of real world trust fairly cheap. So, It can save somebody a headache down the road.
Hi,
the Fiat transfer is done outside of Bitsquare, similar like in LocalBitcoins. You go to your online banking webpage do the transfer and then confirm that you send the money. The Bitsquare app sends that confirmation to the other user who then need to check his bank account and when he has received the Fiat money he confirms as well and then the trade is completed.
Later there might be integration of payment processors like OKPay or PerfectMoney who offer APIs so you could do the Fiat transfer form inside Bitsquare.
Feel free to try it out it is already operational on mainnet and you can use it worldwise with national bank transfers.
Regarding chargeback risk:
We don't support payment methods like Paypal or ACH where chargeback is easy. In SEPA you need to provice the banks strong evidence like a contract breach to be able to do chargeback. The only real risk is the case if the BTC buyer used a stolen bank account, then a chargeback happens. To reduce that risk we use a low trade limit which makes Bitsquare not attractive to those criminals. Furthermore we have some other protection in place which is not activated yet (locktime for btc payout).
Regarding arbitration:
Here is a good overview baout the whole process:
https://bitsquare.io/arbitration_system.pdf
The fully decentralized arbitration system is not developed yet but planned for upcoming releases. It will be secured by a high security deposit held in MultiSig by other arbitrators.
Br,
Manfred
