I know in theory how arbitrator work. But Programmatically, how arbitrator registered, selected for new order processes order, resolve dispute out of the platform?
Currently DAO is in development so the current situation with arbitrators will change. Currently have only two arbitrators and they were selected personally.
In future arbitrators will need to lock (bond) their BSQ tokens (colored bitcoins) in order to become arbitrators. If arbitrators don’t do their job right, BSQ stakeholders can vote to destroy (burn) their BSQ bond and therefor redistribute the value of their BSQ to all remaining BSQ tokens.
When offer is created in Bisq, trader specifies which arbitrators they accept and when the offer is taken, one of the arbitrators that are accepted by both traders is randomly picked.
Arbitrators use various ways to validate that the payment was made with fiat or altcoin. Payment methods (or altcoins) where arbitrators can not verify a payment are not added to Bisq for this reason.
In a lot of online banking payment methods, arbitrators can use a program called PageSigner to cryptographically verify a screenshot of a trader’s webpage. In altcoin trades, block explorers are used.
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