What is Bisq?
Bisq is a decentralized bitcoin exchange network that enables users to buy and sell bitcoin in exchange for fiat currencies and other cryptocurrencies without relying on a central authority. Launched in 2016, Bisq operates through a peer-to-peer (P2P) network facilitated by desktop software, ensuring that users retain control over their funds and personal information at all times.
Bisq's core mission is to provide a secure, private, and censorship-resistant way to trade bitcoin. It achieves this by eliminating the need for centralized servers and intermediaries, thereby minimizing the risks of hacks and thefts common in centralized exchanges. Instead, trades on Bisq are secured using a multisignature escrow system, which requires both parties in a transaction to confirm before funds are released. This method includes security deposits to incentivize honest behavior and deter fraud.
Privacy is a cornerstone of Bisq’s design. Users do not need to register or complete KYC (Know Your Customer) procedures, as all data is stored locally and transactions are conducted over the Tor network, providing a high degree of anonymity. Additionally, Bisq does not directly handle fiat currencies; instead, fiat payments are conducted directly between traders via traditional banking methods, coordinated through the Bisq application.
The network operates as a decentralized autonomous organization (DAO), governed by its users through the BSQ token, which is used for paying trading fees and participating in governance. This structure ensures that Bisq remains resilient to censorship and regulation by any single entity.