OpenBazaar Gets $1 Million in Funding from Top Investors to Launch Decentralized Marketplace

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OpenBazaar revealed that it got $ 1 million in seed funding from Union Square Ventures, Andreessen Horowitz, and angel investor William Mougayar to establish the OpenBazaar procedure and client.

OpenBazaar is an open-source job to produce a decentralized network for peer-to-peer (P2P) commerce online– utilizing bitcoin– that has no fees and can not be censored. It can be seen as a dispersed, decentralized variation of eBay powered by P2P technologies such as BitTorrent and Bitcoin.

“OpenBazaar is a different approach to online commerce,” specifies the OpenBazaar web site. “It puts the power back in the users’ hands. Instead of purchasers and sellers going through a centralized service, OpenBazaar links them straight. Because there is nobody in the middle of the deals, there are no charges, no one can censor transactions, and you only expose the personal details that you pick.”

Decentralization– the absence of a central server that can be attacked, turned off or seized by hostile representatives– is a vital function of OpenBazaar. While Napster, a pre-BitTorrent file-sharing Internet service popular between 1999 and 2002, had its servers seized by the authorities and turn off, the decentralized BitTorrent technology showed a lot more resistant since it didn’t rely on central servers. Similarly, the history of Silk Roadway shows that online marketplaces can end up being durable just by deserting main servers in favor of decentralized protocols.

Another stated objective of the OpenBazaar group and its brand-new financiers is to build the first business on top of the OpenBazaar network. The business, referred to OB1, will provide services to OpenBazaar users, and aims to bootstrap adoption of decentralized commerce by providing services such as disagreement resolution, shop hosting, and more. The OpenBazaar protocol and customer will continue to be open source, MIT licensed, distributed and free.

“OpenBazaar is interesting,” notes The Wall Street Journal. “It’s making use of 2 vital technologies, file-sharing software application and bitcoin, to produce a sort of decentralized eBay, where buyers and sellers will communicate straight and personal information will be kept personal. The platform works making use of BitTorrent file-sharing software and bitcoin to produce a decentralized network of buyers and sellers. There is no middle-man, and no user fees. It is totally open.”

Amir Taaki and other designers created the first OpenBazaar prototype, known as DarkMarket, in April 2014 at a Toronto Bitcoin Hackathon, as a proof of idea in response to the seizure of Silk Road in October 2013. Taaki compared DarkMarket’s enhancements on Silk Roadway to BitTorrent’s improvements on Napster. Certainly, BitTorrent, the daddy of modern-day techniques to a decentralized Web, showed to be a quick and fully operational replacement for Napster without the vital weak point of baseding upon a main server.

Right after DarkMarket was exposed at the Hackathon, developer Brian Hoffman forked the task and renamed it OpenBazaar. While the task is intended at decentralizing general-purpose marketplaces like eBay, it seems most likely that it will be utilized for illegal operations too, which the decentralized nature of the platform will certainly make very tough to turn off.

However OpenBazaar itself is simply software application, it’s “agnostic,” Hoffman states. The users themselves will identify exactly what gets sold there.

“It’s what includes the territory,” Hoffman stated. “Bitcoin has the same problem.”

The post OpenBazaar Receives $ 1 Million in Funding from Top Investors to Launch Decentralized Marketplace appeared initially on Bitcoin Publication.


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