Interesting. But, it wasn't clear who picks the Arbiter. What's stopping the Patron or even the Free Agent from also becoming an Arbiter and scamming people by falsely approving or denying the monies held in escrow?

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Ah, something for the FAQ!

The Patron and the Arbiter agree together and the Patron seals the deal by funding the escrow.

You are right about this though: in the most anonymous mode, a single human can pretend to be two different roles (Patron + Arbiter) and trick a Free Agent into submitting work and then "refunding" the money (back to himself).

With a proper reputation system this scam won't last long - maybe one or two low-paying gigs.

But if someone is operating NON-100% anonymously, it would be obvious. If I, Vinney, am the Patron, and, say, nostr:npub1l2vyh47mk2p0qlsku7hg0vn29faehy9hy34ygaclpn66ukqp3afqutajft is the Arbiter, we clearly are different people.

yep! and in a perfectly pseudonymous world, if we have GrapeRank or another reputation system, you could get the same after some history of pro-social action on the protocol.

(or even without those automated systems, clients could try to show histories nicely)

You made it to the FAQ :)

https://catallax.network/faq