A fully decentralized marketplace
A fully decentralized marketplace
Greetings,
Lately, I’ve been contemplating the feasibility of a fully decentralized marketplace. This marketplace would primarily operate through
smart contracts, ensuring decentralization and seizure resistance.
Indeed, all that would be needed to sell and buy on the contract would be the contract’ address.
From that anyone could open its custom frontend access, like an access point.
So even an ‘access point’ being taken down, the core of the marketplace would still live somewhere in the wild on the blockchain.
In the case of physical goods transactions, the contract would encrypt the buyer’s home address with the seller’s key,
ensuring that only the buyer and seller could access it.
To address concerns about scams, sellers could be rated through an upvoting system, and feedback mechanisms could be implemented.
However, there is one challenge to consider: fees. Any action that involves writing data, such as posting a product for sale or upvoting a seller,
would incur gas fees. Nevertheless, on blockchains with very low fees, such a decentralized marketplace could still offer significant benefits, in my opinion.
So i’d like to get your thought and feedbacks of such a market, solely based on smart contracts.
WazirX was using a Gnosis Safe multisig wallet, which is supposed to be one of the most secure ways to store cryptocurrency. Even Vitalik has recommended it and said he holds more than 90% of his personal funds in this type of wallet. The attack they suffered was highly sophisticated. For the average user, who will likely never be targeted by something like this by nation-state level attackers, traditional cold storage is still a very good solution.
For exchanges and smart contracts they are always going to be targeted regardless of how many audits they’ve had and how many security measures they’ve taken to prevent hacks. They will never be entirely safe and it is best to limit your risk by not holding too much of your funds on them.
Some of those money heists are orchestrated by insiders, and then they blame it on the hackers. I refuse to believe that the most of the time, some lucky hacker just lands on some vulnerability and drains Millions worth of crypto. Lets been honest, How can over $100M get drained from an exchange without immediately raising flags or internal controls.
If any other ordinary user like me, or you even tried to withdraw $1M, I am p[pretty sure they would carry out an immediate manual verification before sending the fund to the external address.
Like opensea? While it is a marketplace for NFTs, the fee is certainly a big concern but it seems that most of the networks for altcoins aren’t that expensive at all. But a time when the demand gets higher especially in the ERC20, the fees are also going to increase together with the demand.
Whilst there are other networks that are being supported for each coin, you can consider that as well that your marketplace is open for different networks and wherever is the customer is confident without having interruption and problems with the fees.