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OB Genesis Contract
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OBGenesisContract.md

OpenBazaar Genesis Contract

The following article contains OpenBazaar's first ever Ricardian contract for the sale of a good between Sam Patterson and Brian Hoffman, arbitrated by Dr Washington Sanchez. In short, the signing process follows these steps:

  1. Creation of the seed contract by the seller
  • The seller creates a contract to sell a good
  1. Creation of a bid offer for the contract by the buyer
  • The buyer appends their details to the seed contract and digitally signs it
  • The signed contract is called the bid offer and is sent back to the seller
  1. Double-signing of the bid offer by the seller.
  • The seller digitally signs the bid offer to accept the contract
  • Consensus to the terms of the exchange is now achieved by both buyer and seller
  1. Triple-signing of the completed contract by the arbiter and creation of the multisignature escrow Bitcoin address
  • The double-signed contract is sent to the pre-selected arbiter
  • The arbiter appends the multisignature escrow address (2-of-3: buyer, seller, arbiter)
  • The arbiter digitally signs the contract, which is sent to all parties, awaiting transfer of funds from the buyer to the multisig escrow address
  1. Receipt of a completed trade is issued by one of the parties

This process would be used if one or more of the parties are not online at one time to create the finished contract from scratch, requiring the contract to be sent back and forth between the parties in order to establish authenticated consensus for the terms of the exchange. Ideally, if all the parties are online at one time, the contract can be written in its entirety, appending the detached digital signatures of each party.

Case Study: Sam wants to sell a USB stick to Brian

1. Seed Contract

Sam creates the seed contract.

-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA1
 
{
    "OpenBazaar Contract": {
        "OBCv": "0.1",
        "Category": "Physical good",
        "Sub-category,": "Ask price: negotiable",
        "Nonce": "01",
        "Expiration": "2014-06-29 12:00:00"
    },
    "Seller": {
        "NymID": "Samuel Patterson",
        "NodeID": "SamPatt",
        "BTCuncompressedpubkey": "044448c02963b8f5ba1b8f7019a03b57c80b993313c37b464866efbf61c37098440bcdcc88bedf7f1e9c201e294cf3c064d39e372692a0568c01565b838e06af0b",
        "PGPpublicKey": [
            "mQENBFMKYTUBCADD6kIAjBlJ2Q0NEd97aia0BSBibO1C2lVemWig5cNATeob1McWoEo3QznZ",
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            "dQaGpQ==",
            "=IB1U"
        ]
    },
    "Physical Good Contract": {
        "ItemName": "1 USB Drive - 256MB",
        "Currency": "Bitcoin",
        "Price": "0.0026",
        "Description": [
            "Stores crap."
        ],
        "Delivery": {
            "Country": "USA",
            "Region": "All States",
            "EstimatedDelivery": "13 days after triple-signing",
            "PostagePrice": "Included in the item price"
        }
    }
}
-----BEGIN PGP SIGNATURE-----
Version: BCPG v1.47
 
iQFGBAEBAgAwBQJTqLUmKRxTYW0gUGF0dGVyc29uIDxzYW1Ac2FtdWVscnBhdHRl
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=UO2C
-----END PGP SIGNATURE-----

2. Bid Offer

Brian creates a bid offer from the seed contract.

-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA512

- -----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA1

{
    "OpenBazaar Contract": {
        "OBCv": "0.1",
        "Category": "Physical good",
        "Sub-category,": "Ask price: negotiable",
        "Nonce": "01",
        "Expiration": "2014-06-29 12:00:00"
    },
    "Seller": {
        "NymID": "Samuel Patterson",
        "NodeID": "SamPatt",
        "BTCuncompressedpubkey": "044448c02963b8f5ba1b8f7019a03b57c80b993313c37b464866efbf61c37098440bcdcc88bedf7f1e9c201e294cf3c064d39e372692a0568c01565b838e06af0b",
        "PGPpublicKey": [
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            "dQaGpQ==",
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        ]
    },
    "Physical Good Contract": {
        "ItemName": "1 USB Drive - 256MB",
        "Currency": "Bitcoin",
        "Price": "0.0026",
        "Description": [
            "Stores crap."
        ],
        "Delivery": {
            "Country": "USA",
            "Region": "All States",
            "EstimatedDelivery": "13 days after triple-signing",
            "PostagePrice": "Included in the item price"
        }
    }
}
- -----BEGIN PGP SIGNATURE-----
Version: BCPG v1.47

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=UO2C
- -----END PGP SIGNATURE-----
    "Buyer": {
        "NymID": "Brian Hoffman",
        "NodeID": "brianhoffman",
        "BTCuncompressedpubkey": "047c18cb94c75934de10c067b0085ff18f933e0a8fc06707dbec6ade33ec5ab9e451e73cf53b9eead130e87d1e4145b4a62a87661d2f68508f8dcf5c539a67b71c",
        "PGPpublicKey": [
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        ]
    },
    "Arbiter": {
        "NymID": "Dr Washington Sanchez",
        "NodeID": "drwasho",
        "BTCuncompressedpubkey": "04d09c05c84a73344ee3b03d03fdf4a6bff2b1c4e15ffeb7403b91b0815be8b03ee50ade6b28d27aabc7c56cf679f74acec3d8e760595f5878caec12edd32938ea",
        "DisputeFee": "10 percent of item price",
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            "=G1fD"
        ]
    }
}
-----BEGIN PGP SIGNATURE-----
Version: GnuPG v1
Comment: GPGTools - https://gpgtools.org

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-----END PGP SIGNATURE-----

3. Double-Signed Contract

Sam digitally signs Brian's bid offer to accept his offer.

-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA1

- -----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA512

- - -----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA1

{
    "OpenBazaar Contract": {
        "OBCv": "0.1",
        "Category": "Physical good",
        "Sub-category,": "Ask price: negotiable",
        "Nonce": "01",
        "Expiration": "2014-06-29 12:00:00"
    },
    "Seller": {
        "NymID": "Samuel Patterson",
        "NodeID": "SamPatt",
        "BTCuncompressedpubkey": "044448c02963b8f5ba1b8f7019a03b57c80b993313c37b464866efbf61c37098440bcdcc88bedf7f1e9c201e294cf3c064d39e372692a0568c01565b838e06af0b",
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        ]
    },
    "Physical Good Contract": {
        "ItemName": "1 USB Drive - 256MB",
        "Currency": "Bitcoin",
        "Price": "0.0026",
        "Description": [
            "Stores crap."
        ],
        "Delivery": {
            "Country": "USA",
            "Region": "All States",
            "EstimatedDelivery": "13 days after triple-signing",
            "PostagePrice": "Included in the item price"
        }
    }
}
- - -----BEGIN PGP SIGNATURE-----
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- - -----END PGP SIGNATURE-----
    "Buyer": {
        "NymID": "Brian Hoffman",
        "NodeID": "brianhoffman",
        "BTCuncompressedpubkey": "047c18cb94c75934de10c067b0085ff18f933e0a8fc06707dbec6ade33ec5ab9e451e73cf53b9eead130e87d1e4145b4a62a87661d2f68508f8dcf5c539a67b71c",
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    },
    "Arbiter": {
        "NymID": "Dr Washington Sanchez",
        "NodeID": "drwasho",
        "BTCuncompressedpubkey": "04d09c05c84a73344ee3b03d03fdf4a6bff2b1c4e15ffeb7403b91b0815be8b03ee50ade6b28d27aabc7c56cf679f74acec3d8e760595f5878caec12edd32938ea",
        "DisputeFee": "10 percent of item price",
        "PGPpublicKey": [
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    }
}
- -----BEGIN PGP SIGNATURE-----
Version: GnuPG v1
Comment: GPGTools - https://gpgtools.org

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- -----END PGP SIGNATURE-----
-----BEGIN PGP SIGNATURE-----
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-----END PGP SIGNATURE-----

4. Triple-Signed Contract

Washington (the arbiter) appends to the double-signed contract the multisignature escrow address and redemption script, and finally digitally signs the double-signed contract.

-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA1

- -----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA1

- - -----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA512

- - - -----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA1

{
    "OpenBazaar Contract": {
        "OBCv": "0.1",
        "Category": "Physical good",
        "Sub-category,": "Ask price: negotiable",
        "Nonce": "01",
        "Expiration": "2014-06-29 12:00:00"
    },
    "Seller": {
        "NymID": "Samuel Patterson",
        "NodeID": "SamPatt",
        "BTCuncompressedpubkey": "044448c02963b8f5ba1b8f7019a03b57c80b993313c37b464866efbf61c37098440bcdcc88bedf7f1e9c201e294cf3c064d39e372692a0568c01565b838e06af0b",
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        ]
    },
    "Physical Good Contract": {
        "ItemName": "1 USB Drive - 256MB",
        "Currency": "Bitcoin",
        "Price": "0.0026",
        "Description": [
            "Stores crap."
        ],
        "Delivery": {
            "Country": "USA",
            "Region": "All States",
            "EstimatedDelivery": "13 days after triple-signing",
            "PostagePrice": "Included in the item price"
        }
    }
}
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    "Buyer": {
        "NymID": "Brian Hoffman",
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    },
    "Arbiter": {
        "NymID": "Dr Washington Sanchez",
        "NodeID": "drwasho",
        "BTCuncompressedpubkey": "04d09c05c84a73344ee3b03d03fdf4a6bff2b1c4e15ffeb7403b91b0815be8b03ee50ade6b28d27aabc7c56cf679f74acec3d8e760595f5878caec12edd32938ea",
        "DisputeFee": "10 percent of item price",
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}
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Comment: GPGTools - https://gpgtools.org

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{
    "Escrow": {
        "MultiSigAddr": "35MgRri9sk2d8xB7PF75D2icF9cm4R2ddd",
        "RedemptionScript": [
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            "61c37098440bcdcc88bedf7f1e9c201e294cf3c064d39e372692a0568c01",
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}
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5. Receipt

Theoretically any party involved in the exchange can issue a receipt for a successful exchange. It can be assumed that if funds are transferred from the multisig escrow address to the seller without the intervention of the arbiter, then it reasonably safe to assume that the goods arrived and the trade can be considered successful, without disputes. Once the funds have been transferred, the buyer can append the transaction details to the contract, make a final digital signature and distribute it to the other parties of the trade.

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