OpenBazaar is a free online market with no restrictions. Using an open-source platform for developing a protocol for e-commerce transactions. Online commerce on OpenBazaar is a peer to peer medium, and uses the cryptocurrency Bitcoin as the choice of currency, which is also open-source software and uses the peer to peer system to facilitate transactions between users directly.
Together Bitcoin and OpenBazaar come together to create a usable online commerce site, as an alternative to other sites such as eBay, Amazon, Alibaba, and other eCommerce sites with restrictive policies and listing/selling fees. “Buyers and sellers aren’t always free to exchange goods and services with each other, as companies restrict entire categories of trade.” (OpenBazaar, 2016). See the sites stats and listings on BazaarBay.
For more on Alibaba’s payment methods see my article on Alibaba Social Responsibility and Sustainable Development: A Case Study, in particular the following online payment systems such as Allipay:
…Jack Ma foundered Alibaba in 1999 now China’s leading (business-to-business) e-commerce Company, operating a conglomeration of various e-commerce sites including Taoboa (consumer-to-consumer), Allipay (online payment system), Tmall and AliExpress (business-to-consumer)…
Unlike Alibaba, OpenBazaar does not accept forms of payment that cost buyers/sellers money, therefore, Alibaba and other eCommerce sites must learn and develop new payment methods and less restrictive policies like that of OpenBazaar who are leading the way for the online version of the free market.
PayPal may be the popular online form of payment used for its secure means for transactions, however, PayPal compared to Bitcoin charges buyers and sellers for transactions. Additionally, those payment methods that require and store personal information for transactions can lead to data retention being sold to other organisations, or even being stolen.
How OpenBazaar works is that just like in any transaction buyers come together with sellers to agree on an accepted price, only here once you both agree the client creates a contract using digital signatures. For transactions to go smoothly a third party is used called a moderator, who witnesses the contract and creates a multi-signature Bitcoin account.
Source: (OpenBazaar, 2016).
OpenBazaar. (2016). What is openbazaar?. Retrieved [17/05/2016] from <https://blog.openbazaar.org/what-is-openbazaar/>.
Featured image supplied from Pixabay (edited).
Copyright © 2016 Zoë-Marie Beesley
Licensed under a Creative Commons Attribution 4.0 International License.