OpenBazaar goes mainline what is the impact?

“OpenBazaar Team Releases First Version of Decentralized Marketplace”
Washington, DC — April 4th, 2016 – OpenBazaar – the decentralized marketplace that uses Bitcoin – is now open for business.

Today, the core developers of OpenBazaar released the first version of their peer-to-peer marketplace. Project leader Brian Hoffman stated, “Trade was meant to be free. This idea inspired us to spend the last two years building OpenBazaar. Starting today, anyone in the world with access to an Internet connection can use Bitcoin and OpenBazaar to exchange goods and services freely. We can’t wait to see how people will use this tool.”

Unlike the online marketplace giants Alibaba, Amazon, or eBay, this new model of online commerce isn’t controlled by any company or organization. OpenBazaar is a fully peer-to-peer marketplace where buyers and sellers engage in trade directly with each other. Because there are no middleman in the trade, users don’t pay any fees to use the network, and there are no terms and conditions to sign. OpenBazaar is permissionless trade. There are also no central authorities that act as gatekeepers and restrict trade.

OpenBazaar launched a test version of their software March 1st, and saw more than 25,000 downloads from 126 countries. Users posted more than 3,000 listings to test out the software in preparation for the public release.

Ignoring silkroad type commerce that can’t happen on Ebay, etc., OB vendors make a sacrifice in audience and ease-of-use for the benefit of not having to pay a middleman. Buyers make the sacrifice of choice and ease-of-use without any noticeable gain.It didn’t work for Diaspora.I think the concept is awesome, but I don’t expect OB to get much traction outside of markets that are excluded from centralized vendors by policy.Until the decentralized experience has all the upside of the centralized experience, plus lower fees, centralized services will dominate.

OpenBazaar may be the killer app bitcoin needs could be the start of mainstream adoption. It often appeared as if this day would never come. But I can’t help but think that it was programmed for the wrong network, and that OpenBazaar will perish because of it. If OpenBazaar gets even a fraction of a fraction of the transaction volume of eBay, it will take down the already maxed bitcoin network and OpenBazaar itself with it.Someone needs to fork OpenBazaar and use it on a network which has spare capacity and a simple scaling plan.

It’s an fascinating technology that may see some use, but nothing that will move the price. It’s fundamentally comparable to Hearn’s excellent Lighthouse software. Decentralised crowdfunding should be a game changer, and the software itself is so extremely smooth and easy to use. But what has it changed? When did you even hear Lighthouse mentioned last? In fact, existing centralised crowdfunding systems work very well and decentralisation itself is not a killer feature. OpenBazaar could have become popular with illegal goods, but it’s not at all designed for anonymity and centralised darknet markets already work pretty well.

Centralization is nearly always going to be preferable. Centralized systems have superior scalability. Better customer support. Better assurance. They’re just better. There’s no way in hell I will use OB and mess around with picking some freelance mediator or whatever system they use to prevent fraud. if I use Amazon, they will take anything back no questions asked. Ship it super fast. I don’t care if some fly-by-night business activity will somehow do it for 10% less. I’ll pay more. I can’t think of too many people besides a few thousand hardcore crypto nerds who would even try OB, let alone consistently use it to shop. I just don’t get it. I don’t get the hype.

What is possible.


Leave a Reply