OpenBazaar – A Rundown

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Estimated reading time: 5 minutes, 10 seconds

CryptocurrencyLooking to spend some of those crytpo gains? Or maybe sell some stuff for bitcoin? OpenBazaar is a completely decentralized online marketplace that accepts over 50 cryptocurrencies and pays sellers out in bitcoin. OpenBazaar removes geographic limitations by connecting users from all over the world.

The project is completely open-source and is not managed by any central entity. Many have described it as the eBay of the blockchain. Projects like this decentralized marketplace are primed to accelerate mass adoption of cryptocurrency, as it will give people a viable place to spend their tokens!

Creating an store on the network is easy, too! Simply download, connect via Metamask, fill out the basic questionnaire, and you’re all set! Stores are customizable and each one is unique, so you’re bound to find some cool things on OpenBazaar.

Check out our video for all the info, or read about it below! There you can find the link to download OpenBazaar!

What is OpenBazaar?

OpenBazaar is a really cool, completely decentralized project that is actually up and running today. Simply put, it is an online marketplace, modeled just like eBay, but get this, there is no central party controlling the protocols of the software.

This is a really important distinguishing point. Open Bazaar isn’t a company… It isn’t a centralized entity, and there is no third party controlling the system. Open Bazaar is a completely volunteer-backed decentralized application, or dApp for short.

Some features and benefits

Accessing OpenBazaar is really quite easy. It is available for Windows, Mac, and Linux. Plus, it’s completely free and open source software that bills itself as,

“A FREE ONLINE MARKETPLACE. NO PLATFORM FEES. NO RESTRICTIONS. EARN BITCOIN”

As we said, OpenBazaar doesn’t take any cuts of your money. There are no platform or membership fees, no monthly fees, and no listing fees! You don’t even need a bank or credit card (hail crypto)!

The network is completely peer-to-peer (P2P). It has a live chat function, allows you to customize your store and list pretty much whatever, within reason.

Using a decentralized marketplace like OpenBazaar allows consumers and users to browse and support small businesses from 30+ countries. It kind of creates a borderless financial world where you are not restricted by what’s available in your local economy.

The software is really easy to use. All you have to do is sign into your default server, fill out some easy initial information. Once that’s complete, you’ve actually created your own OpenBazaar store. Then you can list products for sale and browse products!

The principle of comparative advantages

As an example, coconuts are plentiful in Hawaii. It provides perfect climate conducive to coconut growth. Because of this, the supply of coconuts is abundant, and the price in Hawaii is very low, since there is no scarcity.

However, let’s say you are a coconut lover in North Norway. Well… those coconuts are going to be a lot more difficult to come by, and in turn will cost you a lot more than it would in Hawaii for the same coconut. In this case, Hawaii has a comparative advantage in coconuts.

Countries use these principles all of the time for international trade. Columbia has abundant coffee; Brazil has corn. So they figure out a rate to trade and they both have their desired commodity.

OpenBazaar uses this principle to attract users to the software. Some items are hard to find in local markets. OpenBazaar believes in a completely free economy where the consumer comes first and has access to whatever they want.

Dispute resolution

A lot of people, including us, have made the comparison to Ebay. Ebay charges a 9% commission of every listing sold, as compared to OpenBazaar’s 0%. However, Ebay provides a dispute resolution system that was revolutionary at the time it was created and is still the standard.

OpenBazaar has figured out a way to resolve their own disputes, all while avoiding the prospect of centralization. They use something called multisig contracts, which just means that all parties have to agree upon a completed action before the funds are released.

The best analogy for this is a safety deposit box that has 3 separate and unique keys. In order to open the box and get what’s inside, you need all three individuals to have their respective keys ready in order to open the box. Multisig contracts are just the digital version of this.

You may have realized I said there were 3 parties that had to agree. Obviously there is a buyer and a seller, but what if they disagree on an outcome? You get into a situation where it is their word against the other parties. OpenBazaar uses independent arbiters to help confirm transactions, as they are unbiased. But since there is no central entity controlling OpenBazaar, this task obviously cant fall to their non-existent employees. Instead these third party arbiters work as a notary, and they largely control the outcome of the transaction.

Adopting blockchain technology

OpenBazaar is aiming to accelerating mass adoption, and the best way to accelerate mass adoption is to make your technology accessible. Which is in part why their technology is open-source and free. Plus, they accept over 50 different cryptocurrencies, all while paying out sellers in bitcoin! This makes the marketplace extremely easy to use, and now you can spend your crypto directly on a variety of goods without converting to fiat. 

Now there is a software that can circumvent middlemen and third parties, ultimately save you money, and allow you to buy goods that are not always available to you in your local market. So check it out!

Download OpenBazaar here!

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If you are interested in more ways to earn cryptocurrencies, check out our Freelancing Guide! Plus,  for more ways to spend your cryptocurrencies, take a look over our intensive Where to Spend Guide!

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