OpenBazaar Haters

Almost all feedback we get on OpenBazaar is positive. It’s rare to get any negative feedback, let alone have critics taunt us to respond. Anyway I figured I would dust off my personal blog to show how misguided the are. Here’s a link to the podcast. Starts at 25 minutes.

They are building a customized Magento which can only be viewed from a customized browser.

Right of bat they get OpenBazaar wrong, which is probably why most the criticisms in the podcast miss their mark. Magento is a essentially ecommerce software. You install it on a server so you can avoid the hassle of building your own ecommerce website. Once you have a Magento site up and running, it still falls on you to drive traffic to your site. If no one visits your site, you don’t sell anything. Anyone who has experience with this (myself included) knows that it can very easily cost more in advertising dollars to drive traffic to your site than you earn in gross margin. In fact this is one of the major barriers to entry when it comes to small sellers on the internet.

This is why many small sellers chose to use platforms, like eBay, Etsy, etc., which bring buyers and sellers together. When you create a store on Etsy, you don’t have to advertise because there is built in traffic for your products. Your store is visible to everyone who visits Etsy and your products show up in the search results.

The OpenBazaar model is much more like Etsy than it is Magento or Shopify. The idea is not to create web hosting software to dump on people and let them figure out how to drive traffic to their server, but instead to create a portal which brings buyers and sellers together. An OpenBazaar store will be visible by anyone using the software and all your listings will return in other user’s search results.

So a very similar model to Etsy, except for one thing. It’s permissionless and free. Anyone can list products on OpenBazaar which cannot be censored and they don’t have to pay a middleman to list their products nor pay them a cut of each transaction. For sellers who have been discriminated against on centralized platforms (see: Witches are furious at Etsy for banning the sale of spells) and sellers who’s margins are eaten up by the fees, OpenBazaar should be a compelling alternative.

OB1 is web hosting for OpenBazaar. Ah, it’s Shopify, it’s shitty Shopify.

Thanks for telling us what our business model is! The facts are we have spent very little time discussing the business model and may or may not offer hosting services in the future (which isn’t really needed as you can just run it in the background on your home computer). Our focus (and the focus of the VCs who fund us) is to build a great product and get as many people using the platform as possible and worry about monitization later. In my opinion there are probably more lucrative avenues than hosting that we will likely pursue.

Why not just set up a magento installation on a .onion site and let people use chrome to get to it rather than take on the risk of hosting your own stuff on your computer.

We’ve said over and over again that we are not building this to be a darknet marketplace. If we were, we would not have received funding to begin with. But while we’re talking about darknet marketplaces, the model described above is failed model. The feds have shown they have remarkable ability to locate hidden services, shut them down, and imprison the operators. And because they are centralized, when the do take the site down, all the vendors are shut down with it. If a site has 1000 vendors doing business, that’s 1000 vendors who are shut down with it.

In a decentralized marketplace there is no central authority to shutdown. If one vendor is located and shut down, the other 999 remain operative. This is a much more robust model than relying on the competency of one person to keep everyone else in business.

It’s true that the OpenBazaar model may open up a vendor to more risk than he would have on a centralized platform. Afterall he needs to host the OpenBazaar software somewhere, whereas with a centralized site he just periodically connects to it over Tor. But this is no more of a risk than what was suggested above: setting up a Megento installation on a .onion site. Which, of course, you could also do with OpenBazaar.

It’s difficult to tell how popular OpenBazaar will be with the darknet crowd, maybe something like BitMarkets, which sacrifices scalability and usability for privacy, would prove better suited for this purpose. But it’s quite frankly absurd to suggest to people ‘just set up a magento installation on a .onion site’ when that has proven to be a failed model.

They’re literally going to be competing with Google

Really? Does Etsy compete directly with Google? The fact that we need our search bar to return accurate results for products listed on OpenBazaar by no means implies we will be indexing the entire internet. Frankly every ecommerce site out there has the ability to search products on their site. Are they all competing with Google? This is just grasping for something to criticize at this point.

That’s it. Quite weak criticism if you ask me.

Preview: Bitcoin Authenticator

My Apologies for the dearth of posts on this blog. It’s been quite a while and I see my traffic has dropped off a cliff. But I’ve been busy! I’ve spent the last couple months developing a two-factor authentication app for Bitcoin wallets called… Bitcoin Authenticator. I’m actually really excited with how this is turning out. Check out the preview video below!


Feminist Brutalism

A couple weeks ago Jeff Tucker wrote a great (and controversial) article about Libertarian Brutalism. In architecture brutalism was:

An affectation, one that emerged from a theory robbed of context. It was a style adopted with conscious precision. It believed it was forcing us to look at unadorned realities, an apparatus barren of distractions, in order to make a didactic point.

Of course today brutalist buildings are nothing but eyesores.

In the same vein, libertarian brutalism:

Strips down the theory to its rawest and most fundamental parts and pushes the application of those parts to the foreground. It tests the limits of the idea by tossing out the finesse, the refinements, the grace, the decency, the accoutrements. It cares nothing for the larger cause of civility and the beauty of results. It is only interested in the pure functionality of the parts. It dares anyone to question the overall look and feel of the ideological apparatus, and shouts down people who do so as being insufficiently devoted to the core of the theory, which itself is asserted without context or regard for aesthetics.

We seen this is works like Defending the Undefendable. It’s sort of a celebration of the worst things one could do with their freedom.

I bring this up because I see a strong brustalist streak among modern feminists, especially in the libertarian movement.

Continue reading


Beginners’ Guide To Off-the-Record Messaging


This is a sequel to my earlier post Beginners’ Guide to PGP which was the first in a series of posts aimed at introducing new bitcoiners to various encryption technologies. In this post we’re going to teach you how to use Off-the-Record messaging (OTR).

So what is OTR? Like PGP, it’s a cryptographic protocol designed to provide strong encryption of your communications. However, it shouldn’t be considered a competitor or replacement for PGP, more like a welcomed complement. Where PGP is often used to encrypt emails, files, and authenticate messages with digital signatures, OTR is an encryption protocol for real time chat. And unlike PGP, which can be a little daunting to learn and use securely, OTR is quite easy to setup and use and provides a pretty good user experience.

Under The Hood

Before showing you how to use it, let’s take a look under the hood. If you recall from the last post, PGP uses public-key cryptography. That is, one key (a public key) is used to encrypt a message and a separate key (the private key) is used to decrypt it.

Continue Reading >>


Some Thoughts On “Ban Bossy”

Watching this video really makes me feel sheltered. I almost never hear women called bossy. And I’ve never heard it used as a sexist/derogatory adjective for an ambitious woman.

There is no shortage of exposure to feminism in the libertarian movement. I have to admit that I often struggle to relate. Most of the time I just chalk it up to being a man. I think, “maybe being a man has insulated me from these issues”. So I usually don’t say anything and accept that the women are probably in a better position judge this stuff than me.

Continue reading


This is What Most Likely Happened to MtGox

There has been a ton of speculation as to what happened in the catastrophic failure of MtGox. The only thing we know for sure is that it somehow “lost” upwards of 750,000 of customer BTC, valued around $450 million. A number of theories have been circulating on the internet. Here I’m going to talk about the one that seems the most plausible to me. H/t to /u/PuffyHerb on Reddit for most of this.

The theory is essentially that the U.S. Government seized MtGox’s cold storage wallet and Karpeles can’t disclose that information due to a gag order.

Before getting into that let’s recap the “official” story of what is believed to have happened.

Continue reading


Arizona SB1062 and the Freedom of Association

There’s a big stink lately over a bill in Arizona that would allow businesses to discriminate against homosexuals. Many gay rights activists are comparing the legislation to the discrimination against African Americans throughout the civil rights era. The supporters on the Right are framing this as an issue of religious freedom. Indeed the proposed bill is an amendment to the existing “Religious Freedom Restoration Act”, and would allow business owners to deny service to gay and lesbian customers so long as the business owner was “acting solely on their religious beliefs.”

Now of course I’m not going to defend discrimination here. I personally wouldn’t patron a business that discriminates against customers on the basis of skin color, race, gender, sexual orientation, national original or what have you. Businesses that do so are rightfully condemned. But what always goes missing in these discussions is any acknowledgement of the freedom of association. This isn’t about religious liberty at all. In fact, religious liberty is just an outgrowth of the freedom of association. One either has the right to associate (or not associate) with whomever they want, or they don’t.

Continue reading

Liberty Forum

Liberty Forum Recap

I got to spend the last few days with a bunch of great liberty loving anarchists at the 2014 NH Liberty Forum. There’s a lot I could write about, but here I’ll just provide a quick rundown of the highlights.

  1. There seems to be a concerted effort on the part of the liberty community to reach out to non-libertarian, yet libertarian leaning individuals, give them a warm welcome and try to draw them in. I have to say, I LOVE that strategy. Not only does it give us the potential to convert influential people to libertarianism, but short of that it builds strong alliances and good will. It’s much better than just speaking to the echo chamber. The keynote speakers were Naomi Wolf on Friday night and on Saturday night a panel including whistleblower Thomas Drake, attorney Jesselyn Radack, and Trevor Timm of the Freedom of the Press Foundation moderated by Devon Chaffee of the NH ACLU.
  2. I got to speak to Naomi Wolf about Bitcoin! She seemed fascinated with the idea and asked me a bunch of questions. I was gonna try to get her to set up a wallet and send her some bitcoins but I didn’t have the opportunity to speak with her again after that. Although Alyson from Blockchain also had a conversation with her about it. I’ll probably send her a follow up email.
  3. I met Ladar Levison from Lavabit ― the email provider that shut down rather than let the NSA spy on them. He provided us with an update on the Dark Mail protocol he’s working on with Silent Circle. I wrote more about this over at Bitcoin Not Bombs.
  4. The FSP community in Manchester has built a couple makeshift night clubs. Not the most impressive party spots but pretty cool nonetheless. They sort of have a speakeasy feel. Very nondescript exterior, you’d never know there’s an anarchist hangout on the inside. And paying for drinks with Bitcoin really added to the underground feel.
  5. I got to meet Kash Hill from Forbes. She’s the writer who lived entirely on Bitcoin for a week last year. She told me she’s going to do it again at the one year anniversary. Should be pretty cool to compare it to last year and see how adoption in San Francisco has progressed.

Overall the conference probably exceeded my expectations. I’m glad my snowboarding plans fell through so I had an opportunity to go. I definitely plan to return next year.


Reinventing Email: Update on the Dark Mail Project

Dark Mail AllianceI just got back from the 2014 New Hampshire Liberty Forum where I got to attend a number of great talks on privacy and security. One of the cooler parts for me was meeting Ladar Levison. Even though he wasn’t a speaker, he still took time out to speak with a number of us. For those who don’t know who Ladar is, he’s the founder of Lavabit, Edward Snowden’s email provider.

Lavabit made national headlines last year when it became the first technology firm to completely shut down rather than allow the NSA to spy on its customers. At Liberty Forum Ladar provided a little more insight into what the NSA wanted. Basically, they wanted his SSL private key so they could perform a man-in-the-middle attack on his servers. All traffic to the server would be intercepted by the NSA, downloaded, then forwarded along to the destination (with the potential for the NSA to manipulate data in the process). Of course this wouldn’t have just affected Edward Snowden, but all of Lavabit’s customers. Lavabit offered to comply with the order by giving them special access just to Snowden’s emails, but naturally that wasn’t good enough for the NSA as they wanted to spy on everyone. So Ladar made the heroic decision to shut down rather than allow his customer’s rights to be violated.

Now you can pretty much guarantee that if the NSA was demanding MITM access to Lavabit, they basically have that access for nearly all other services.

Continue Reading >>


MtGox Problems and Transaction Malleability

mtgox-bitcoinWatching the drama surround MtGox in recent days has been like watching a slow motion train wreck. It’s put a lot of strain on the community and has been causing the Bitcoin price to tank. If you’re not up to date on this story, basically MtGox has been experiencing severe Bitcoin withdraw issues with numerous customers claiming they never received their bitcoins. Apparently upwards of $38 million worth of bitcoin withdrawals have gone unfulfilled causing MtGox to freeze withdrawals altogether.

You can add this to the long list of problems MtGox has had over the last couple years. A trading platform that couldn’t handle high volume trades, operating without a license in the US and having a large amount of customer funds stolen by the US government, USD withdrawals taking months to clear, and strong suspicion it’s operating on fractional reserves.

Now this morning MtGox comes out and announces its problems aren’t its fault, but rather a bug in Bitcoin itself! News of this potentially catastrophic bug has sent the markets into a tizzy.

Continue Reading >>