The Brawker blog

Dear Brawker Users,

We are sorry to inform you that we will not be continuing the service any longer. We have tried to keep Brawker running for as long as possible, and put a lot of time and effort into it. However, our growth rate did not meet our expectations, and the service does not scale as we would have expected to. The Bitcoin community came up with many great startups and the environment is very different from what it was 18 months ago, when we started working on this project. Though Brawker has a lot of happy users, all good things have to come to an end, and now is a good time to move on to our next projects, and build something new that is even more useful to the community.

It was an amazing experience, we learned a lot working with all of you and had plenty of positive moments.

The system is not accepting new orders anymore, and will give you until the end of the month (April 2015) to finish all your outstanding orders and withdraw your money. Brawker stopped holding users bitcoins last year. Instead, each order has its own multisignature escrow that is released to own users wallets. We will be here to help everyone in the process of closing their orders. If you still have bitcoins held by our old system, please withdraw them at brawker.com/wallet.

After that, we are aiming to open-source some parts of our code - particularly the multisignature framework - in the hope that some of it might still be useful to others. Do contact us if you are thinking about using it, we will be glad to help.

We are still confident about Bitcoin and already working on other projects, so we won't be far!

Thank you,

Dear Brawker Users, As you may have noticed, we currently have some problems with our servers. We sincerely apologize for the trouble, and are working non-stop to resolve all your issues.

(Update: Everything is working now. Please open a ticket if your funds are still missing.)

We recently had a change in management and Cyril is not involved in the company anymore. Brawker is now fully operated by us, the developers. During the migration to a new, more cost-effective server infrastructure, there was a chain of several unforseen problems, that lead to the current situation. No data has been lost, the bitcoins are safely in their multisig escrows. The root causes of the problems have been fixed, and we're almost back in working order. Please give us another day or two to comb through our database and resolve all inconsistencies, before we get to your specific issue. Please understand that we are doing the best we can, but are still getting used to the change in responsibilities, for example handling support issues smoothly. We will keep you posted and let you know as soon as there are any new developments. Sincerely,

We have heard requests from many spenders:

Can you please increase privacy protection of my physical address and my email address?

We heard you. And we have just added a small new feature that is a step in the right direction: the Delivery Information field.

This is how it works: When you create an order on Brawker, and you have to explicitly provide a physical address for delivery of the items, there is now a private field labeled "Delivery information". This is where you enter a physical address for the order to be delivered, and your email address. With this new feature, this information is visible only to the bitcoin buyer you select, who needs this information for the order to be delivered to you. Nobody else will see your information.

When you create an account at Brawker you are not required to deposit any bitcoins. Instead, your funds will go through a multisignature address controlled by at least two of three different keys. The Bitcoin spender receives a key, the buyer has the second one and Brawker the third key. Two keys are required to transfer the funds. You control your private key, securing it with your password. What does this mean? That the funds involved in the transaction are not controlled by Brawker, but by the two parties to the transaction. Brawker intervenes only to settle a dispute.

You will immediately understand why this is important for your privacy: you disclose personal information only to those transacting with you who need to know. Your personal information is not disclosed to anyone else. Privacy protection for spenders just went up.

Good news: the overall security level for all Brawker users has just gone up. Way up.

Multisig is now at the heart of Brawker. All accounts are now multisig. Decentralization of control over your funds is here.

What multisig does for you

We all know the standard drill for transacting bitcoins online. Users create an account at a service provider (for example, an exchange), and can transfer bitcoins into and out of an address linked to their account. To make a payment, bitcoins are transferred from the payer's address to the payee's address. Bitcoins held in one's address may be transferred to a wallet elsewhere. In all these cases, a single party, the service provider, controls all addresses and the funds in them by controlling all the private keys. This centralization may be convenient, but there are clear risks: if the service provider is hacked or the keys are compromised, the funds are gone. Multisignature transactions can significantly lower this risk, and much lower risk is what Brawker now provides.

When you create an account at Brawker you are not required to deposit any bitcoins. Instead, your funds will go through a multisignature address controlled by at least two of three different keys. The Bitcoin spender receives a key, the buyer has the second one and Brawker the third key. Two keys are required to transfer the funds. You control your private key, securing it with your password. What does this mean? That the funds involved in the transaction are not controlled by Brawker, but by the two parties to the transaction. Brawker intervenes only to settle a dispute.

How does multisig make transactions more secure? When funds are transferred to a multisig address, they are not under the control of a single party, but of two out of three possible ones, and those keys are stored in different locations. At least two of the keys will have to be compromised for the funds to be at risk. The likelihood of compromising the safety of those funds, therefore becomes extremely low.

How do our multisig transactions work?

Same as before, Bitcoin spenders post their orders on Brawker and potential buyers bid for them. The difference is this: when buyer and spender agree to transact, Brawker creates a multisig transaction controlled by at least two of three private keys: one owned by the Buyer, one by the Spender, and the third one by Brawker, the escrow agent. The address itself can be monitored on the blockchain.

The first two keys are encrypted on each user's browsers, and are enabled only by each user's passwords. Any two keys working together can transfer the funds.

The spender moves bitcoins to the multisig address, where they remain in escrow until the transaction concludes.

When the buyer purchases the order on behalf of the spender and signals that this portion of the transaction is done, the corresponding key is applied. When the spender is satisfied with the order and completes the transaction, a second key is applied to co-sign the bitcoins off to the buyer. In other words, buyer and spender conclude the transaction, causing the bitcoins to be transferred to the buyer.

If a dispute arises, Brawker can mediate and help solve it in collaboration with one of the two parties.

Let’s recap: Brawker does not store or control the funds, which reside at an address on the blockchain. Any two keys control the funds. This is what decentralization means, and why multisignature transactions are a great improvement in security and ownership control.

How multisig will benefit you

Though the mechanics of executing transactions remain largely unchanged, two significant changes have taken place behind the scenes. Namely, decentralization and increased protection.

Decentralization, because funds are no longer deposited under Brawker's care. Control does not reside in a central location where it could be compromised.

Increased protection results from having multiple keys controlling the funds. If one user's password is lost, the funds are still accessible with cooperation from the other user and Brawker.

Balancing the scales between buyers and spenders!

Starting today, bitcoin buyers in the Brawker community have the ability to counter-offer the discount selected by a bitcoin spender.

What are counter offers?

Putting it in context, Brawker works as follows: bitcoin spenders create orders and typically specify a certain discount. What is the discount? It is a premium that favors the spender, on the current exchange rate between bitcoins and fiat currencies. A bitcoin buyer purchasing an order with a discount greater than zero (positive) will acquire fewer bitcoins than with zero discount. Do keep in mind that discounts are incentives for spenders to trade their bitcoins, while buyers benefit substantially by participating in simple, hassle-free transaction to acquire the bitcoins they want.

How do counter offers work?

Up until now, bitcoin buyers wanting to bid for an order could either accept that order as-is or select another one. With counter offers now available, buyers may choose to counteroffer while bidding for an order, proposing a lower discount.

Bitcoin spenders may either ignore the counteroffer and select a different buyer, or accept a lower discount in exchange for a very practical benefit: a smooth transaction working with a buyer they know has a rock-solid reputation in the Brawker community. To ensure a rapid transaction and avoid long, protracted counter-counter offers going back and forth, only one counteroffer can be made, and it will be either accepted or turned down. The rest of the process remains unchanged.

Why did we add this feature?

We listened to our community and heard requests for ensuring a level playing field for buyers and spenders. Just like in any commercial transaction anywhere, both bitcoin buyers and spenders need the ability to negotiate the terms of their agreement. Spenders create their orders proposing a certain discount. Buyers bid for those orders and may choose to counter, proposing a different discount. When the counteroffer is accepted, an agreement is reached. The transaction moves forward. Everybody is happy.

How it all works

As we know, commercial transactions are about exchanging something we own for something we want, but we also seek peace of mind. Reaching an agreement is not only about dollars and cents -- or the total number of bitcoins changing hands, but is also about being reassured by the reputation of the other party to a transaction. Spenders who lack a strong reputation and insist on high discounts may find their orders ignored. Buyers that achieve a great reputation are often the preferred parties because they ensure a safe and issue-free transaction. And the right price for that peace of mind may be a smaller discount. It works in Brawker the same way it does in real life.

Buy your new iPhone with bitcoins, it's possible!

Hey, iPhone lovers!  iPhone 6 was announced as scheduled, and it is now available for preorder. For those of us who just can't wait for that new 4.7 inch high-resolution screen, or the 5.5 inch iPhone 6 Plus, there is one more detail to sweeten the wait: we can buy our very own iPhone 6 and pay with bitcoins at Brawker!

How it works

It's simple: go to the online Apple Store. Create an order and copy the order URL. Create an order on Brawker using that URL.

Deposit enough bitcoins on your wallet, and wait. One or more Brawker users interested in acquiring your bitcoins will bid for your order. Select the buyer you like best. You can even negotiate with the buyer a discount of up to 20%! For example, the lowest-priced may be $519 (in bitcoins) instead of $649. Check out our documentation for more explaination about the discount.

When you receive your iPhone 6, finalize the transaction releasing your bitcoins in escrow to the buyer.

Here's another tip: if you would like to order from Apple, but you don't have a US-mailing address, you can arrange with a forwarding site such as www.shipito.com, and you can have your order received there and forwarded to your overseas address for a low fee.

Enough said. The shortest path to having that iPhone 6 in your hands paying with bitcoins leads through the Brawker community.

Select your buyer. Enhanced trust on every transaction.

We heard our community's feedback and have taken steps to enhance your experience at Brawker. We recently announced expanded visibility into everybody's profiles, particularly users’ ratings and reputation.  We can now learn a bit more about who we are transacting with. And yes, everyone's privacy is still very much protected.

We are introducing a new feature: bitcoin spenders will be able to select the buyer they wish to transact with; just as it is done in the real world.  Up until now, it has been entirely up to the buyer to select the order they wanted, and then just purchase it.  The spender had no say. With this new feature, multiple buyers will be allowed to bid for an order.

Spenders can now check buyers' profiles, learn about their reputation within the community, and select who they wish to transact with.

The bitcoin buying and spending process will be slightly different. Same as before, spenders will post their orders and place the right amount of bitcoins in escrow with Brawker. One or more buyers may bid for the order. Spenders will have up to three days to select a buyer and continue the transaction. All bidders will be notified as soon as a selection is made. Same as before, once selected, buyers will have 24 hours to purchase the order. Timely notifications will ensure everything moves along as expected. 

Users with the longest transaction history and the best reputation for integrity will have an edge. It will be in everyone's best interest, both as buyers and spenders, to develop and maintain their reputations.

Trust is essential to our community. Promoting trust is our priority.

Our users exchange currency for goods and services, expecting all parties in any transaction to deliver on their commitments, with no hesitations. And Brawker stands behind it all, striving to ensure everything is as smooth and simple as we all want it to be.

So, we are adding new features to Brawker, aimed at increasing trust with enhanced transparency. We have revamped user profiles, increasing visibility into transaction reviews and the data that becomes every user's rating. This way, whether you are spending or buying bitcoins, you can have a better feel about the other party in any transaction.

If you are a buyer, on every order you will see, not just the spender's username and star rating, but you will also have access to their profile.  Similarly, spenders will soon be able to approve specific buyers, once they understand their history at Brawker, and their track record.

“We continue taking the pulse of our community”

The publically accessible portion of every user's profile will display how many buy and spend transactions they have performed at Brawker, the number of positive and negative scores they received, and the actual, user-provided written reviews. As always, privacy is preserved, and now positive actions are highlighted, and mistakes noted, so everyone can have a deeper understanding of the other party.

As our community members continue transacting at Brawker, we anticipate that those with a long and spotless history will be embraced by others, and new members will establish their reputations over time, gaining the trust to become respected citizens in this community.