nostr:npub16dhgpql60vmd4mnydjut87vla23a38j689jssaqlqqlzrtqtd0kqex0nkq how does it work today? How often do rugpulls happen, and how do you prevent?
Discussion
How does it work today? Transactions are final. There are no protections
On nostr:npub15dc33fyg3cpd9r58vlqge2hh8dy6hkkrjxkhluv2xpyfreqkmsesesyv6e at least, the transaction is currently up to the buyer and seller to finalize, so they have to trust each other. If there’s a bad actor on one end, there isn’t really a path for remediation since transactions are irreversible. WoT, public merchant and/or buyer reviews, and escrow are key to making global commerce over Nostr viable.
In terms of the number of bad actors, we can’t be 100% on that, but as far as I know, intentionally fraudulent purchases and sales have been almost non-existent. As the network grows, I expect that to change, especially since the community will be less tight-knit.
Escrow also just allows a lower barrier to entry for a seller. If you have to “know somebody” to have access to thousands of customers, that’s just an unfair barrier to jump.
But if anyone can sell and a customer need only trust the escrow, that’s a much more open marketplace