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This is the same problem that BitHalo has (in my opinion.) But the escrow step for Bitsquare is done with multiple third-party mediators instead of between the

This is the same problem that BitHalo has (in my opinion.) But the escrow step for Bitsquare is done with multiple third-party mediators instead of between the users. This has problems of its own because now you have to trust that the mediators are going to act honestly (and pseudo-anonymous reputation systems don't reveal what prior relationships might exist between actors.) I guess the assumption here is that reputation is good enough. Edit: I edited the explanation for clarity.

ManfredKarrer 9y ago
At the moment I (the founder) is the only arbitrator as the project has not implemented the fully decentralized arbitration system. We recently changed the concept how to get there with using a high security deposit in BSQ tokens (DAO tokens) which the arbitrator need to lock up. In case he would cheat he would risk that his deposit get confiscated by voting of the DAO stakeholders. There will be also introduced mediators who don't have the 3rd key, and who are handling the big majority of cases (customer care, there have been basically no real disputes so far). See https://docs.google.com/document/d/1DXEVEfk4x1qN6QgIcb2PjZwU4m7W6ib49wCdktMMjLw https://docs.google.com/document/d/1DXEVEfk4x1qN6QgIcb2PjZwU... for more details... We did not had time to update all the information on the web page and older documents to reflect the new concept.