This page describes a digital currency and marketplace that will revolutionize the way e-commerce is done. Please watch the videos and read the campaign.
We are creating a new economic and financial system “of the people, by the people, for the people”. We are enabling e-commerce without middleman, and payment without bankers. We are using technology to create a socially-responsible marketplace that actively discourage illegal activities.
We are building a secure, efficient, decentralized, online marketplace, where individuals trade directly with other individuals, instead of with multinational corporations. Participants will use currency based on mathematics and technology, instead of belief in a central government, and interact within a monetary system based on production and assets, instead of debt created by central banks.
OmniBazaar is a new type of e-commerce marketplace that removes the middlemen and bankers from e-commerce. OmniBazaar will allow users to buy and sell directly among themselves (rather than through a middleman site like Amazon or eBay), using Bitcoin and OmniCoin (instead of credit cards or PayPal). By using a distributed structure to eliminate the middlemen, and using Bitcoin and OmniCoin to eliminate the bankers, OmniBazaar will be able to charge users about 80% lower fees than existing e-commerce sites like eBay and Amazon. OmniBazaar will also serve the 2.5 billion "un-banked" people world-wide who cannot use existing e-commerce sites, because those sites require users to have credit cards and bank accounts.
Participants anywhere in the world will be able to buy and sell in the OmniBazaar marketplace without bank accounts, credit cards, application forms, or credit checks, using only their smartphone, computer or tablet.
Individuals and small businesses will transact business among themselves using a free version of the OmniBazaar software to list and shop for products and services. Users will pay no fees to join the marketplace, no fees to shop or to post listings, and no monthly or annual membership fees. Users will pay only a small (~1%) fee on each transaction to support the marketplace network.
The marketplace technology to accomplish this has been designed, programmed, and a prototype created. Funding we receive in this campaign will enable us to complete the development of OmniCoin and the OmniBazaar marketplace software.
Screen shots from our working prototype Windows application:
New Money for a New Marketplace
OmniCoin is the digital currency of the OmniBazaar marketplace. People will use Bitcoins and OmniCoins to buy and sell goods and services in the OmniBazaar marketplace. The value of OmniCoins will “float” freely compared to other currencies, and the value of OmniCoins will be based on the value of the goods and services they can buy in the marketplace.
OmniCoin is simple and secure to use. It is privacy-friendly, because it allows you to choose to conduct transactions that are either transparent or anonymous. Transaction processing takes seconds instead of minutes, so OmniCoin is business-friendly. Transaction processing uses relatively little computing power, so OmniCoin is eco-friendly. And, with OmniCoin, you can do transactions using an account name instead of a string of numbers. This makes OmniCoin user-friendly.
When OmniBazaar and OmniCoin launch, we will give away OmniCoins to users of the OmniBazaar marketplace.
We want tens or hundreds of millions of people to be owners of OmniCoin and users of the OmniBazaar marketplace. So, we will give away billions of coins to people who join, refer their friends, do transactions in the marketplace, and provide the services and infrastructure for the marketplace.
In the beginning, OmniCoins will be free. But, as thousand, millions, or billions of people use them in the OmniBazaar marketplace, OmniCoins will find a value, as any currency does, based on the confidence people have that they can use OmniCoin to purchase valuable goods and services.
(OmniCoin is built on the Bitshares code base.)
Blockchain Security: Proof of Participation (PoP)
Block Time: ~5 seconds
Total Supply: 25,000,000,000
Block Rewards: 7.6 billion (30.5%) over 27 years
User-Acquisition Incentives (Air-Drop, Referral, etc.): 6.4 billion (25.6%)
Token Sale Event: 8.4 billion (33.6%)
OmniBazaar Development Fund: 2.5 billion (10% - Distributed evenly over 4 years)
Other Distribution: (The "perks" from our previous crowd-funding campaign, faucet, etc.) 52 million (0.02%)
OmniCoin Distribution Percentage: 100% after 27 years
Bonus/Incentive Distribution Period: As long as it takes
Initial PoW Period: None
Developer Hold-back: None
Investor Repayments: None
CryptoBazaar -- Distributed Cryptocurrency Exchange
CryptoBazaar will provide a secure, escrowed, distributed cryptocurrency exchange. Imagine being able to buy and sell cryptocurrencies without relying on a centralized exchange.
CryptoBazaar will include access to a peer-to-peer escrow service, provided cooperatively by other CryptoBazaar users, which will allow secure transactions between buyers and sellers who don't know or trust each other.
Frequently Asked Questions (FAQs)
Why create another cryptocurrency? Why not just use Bitcoin?
There are several reasons. An address for receiving Bitcoin looks like this: 15r8p9bbciYyjn3Jo1o4UEne7XKAXPCTM3, while an address for receiving OmniCoin looks like this: Alice_B. Bitcoin takes up to an hour to generate six confirmations of validity for a transaction, whereas OmniCoin will generate six confirmations in under a minute. Confirming Bitcoin transactions is very energy-intensive, but confirming OmniCoins is done using a small fraction of the energy and a fraction of the time. OmniCoin is also designed to be better than Bitcoin at accommodating the "micro-payment" transactions that will occur when marketplace service providers are paid a small percentage of the transaction fees from a transaction. We're also building OmniCoin with a simple, automated escrow feature that doesn't exist in other Bitcoin wallets, and a built-in reputation tracking feature that doesn't exist anywhere in Bitcoin (that we know of). Finally, by creating a token specifically for the OmniBazaar marketplace we believe we can make the marketplace more useful and robust.
Having said all that, we are building OmniBazaar to operate with both Bitcoin and OmniCoin.
How can OmniCoins have value if you are giving them away?
When most cryptocurrencies launch, they make a point of promoting the wonderful new features of the coin itself, with the idea that those features are somehow the basis of its value. We are taking a completely different (and radical) approach. We believe that the value of any currency lies only in the confidence people have that it can be used, today or in the near future, to acquire valuable goods and services. People can come to perceive a unit of currency as an investment if they believe it will be more useful (valuable) in the future. But that is a different concept than its value (usefulness) as a currency today.
We are giving away OmniCoins to emphasize the fact that any cryptocurrency, by itself, is absolutely worthless. It is nothing more than some bits and bytes pushed across the Internet. Only the usefulness of a cryptocurrency gives it any value. So, we are creating a simple, secure, cooperative, distributed marketplace where OmniCoins can easily be used, and allowing OmniCoin to find its own value. If we do a good job of making the marketplace easy, safe, and inexpensive to use, and create OmniCoin with advanced features that make it useful in that marketplace, we feel certain that both OmniBazaar and OmniCoin will prosper. The price of OmniCoins may be low in the beginning. But, the more they become useful (and are used), the higher the value (and price) will become.
Why charge transaction fees for services? If the marketplace is cooperative, why isn't it free?
Without charges for consumers of services, and incentives for providers of services, the OmniBazaar marketplace would experience a phenomenon known as the "tragedy of the commons". The creator of Bitcoin avoided this problem, with respect to transaction processing and network security, by providing a financial incentive for the Bitcoin "miners" who provide these services. OmniBazaar extends this concept to also include incentives for those who publish listings for others, provide escrow services, facilitate privacy in the network, etc. We strongly believe that without such a system of fees and incentives, a marketplace economic system like OmniBazaar would fail, due to the "tragedy of the commons".
There is an open-source distributed marketplace project under development that aims to operate without any fees. We believe this effort is doomed to fail for the reasons given above.
How will the developers benefit?
The development team is a "service provider" in the marketplace, just like the Publishers, Escrow Agents, Promoters, and Transaction Processors (miners). So, the developers will receive a portion of the transaction fees from marketplace transactions, just like other service providers. We are planning for that fee to be one half of one percent (0.50%), paid by the seller. And yes, we are planning to make it mandatory -- at least in the beginning. We understand that some people may be incensed (or even enraged) by this. But we believe that most users of the marketplace will consider it reasonable and fair. After all, OmniBazaar will save sellers about 90% of the fees they would pay if they sell on Amazon or eBay. This will naturally also result in lower prices for buyers.
How will you avoid criminals and terrorists?
We are designing OmniBazaar to be private but not anonymous. So, it will be possible for law enforcement agencies to track criminals and terrorists who attempt to use OmniBazaar. We believe people are basically good, and that the vast majority of people have no interest in engaging in criminal activities. So, we are focused on protecting the rights and privacy of the honest majority.
We are also building into OmniBazaar a self-policing system that will allow users to flag prohibited content. If a product is flagged as prohibited by several users, that product will be removed from the system. We have also designed a reputation system that will penalize sellers who list prohibited content. By developing a reputation for honesty, reliability and longevity in the marketplace, users will gain "clout" in the marketplace and have a stronger vote in removing objectionable content.
We have designed OmniBazaar to be a better alternative to Amazon and eBay, not the next Silk Road.
When did the OmniBazaar/OmniCoin/CryptoBazaar project start?
The first complete technical description of the peer-to-peer shopping marketplace concept was published in August, 2013. OmniBazaar Inc. was incorporated in September 2013, to develop the project. By December 2013 we put together our core team, had a Private Placement Offering ready, further developed the technology, created two videos describing the project, and generated various marketing materials. In January 2014, we introduced OmniBazaar and the cooperative distributed marketplace concept at "Bitcoin Miami". Since that time, we have been working largely "under the radar", and have now programmed the core marketplace application and the wallet for OmniCoin.
- Individual liberty, Internet privacy, market freedom, and financial responsibility
- Building a sustainable, asset-based, independent economic system
- Bringing e-commerce to half the world's population who don't have bank accounts
- Getting cryptocurrencies into broad use by average people around the world
- Encouraging and promoting local, mobile, and social commerce
Join our crusade
- Would you like to pay less for stuff when you shop on-line?
- Do you believe in personal privacy and individual liberty?
- Would you like to help us bring e-commerce to half of the world's population?
- Do you support the development and use of alternative currencies?
If you answered "yes" to any of these questions, please show your support with a donation of any size.
We are raising this money to complete the development of OmniCoin and the OmniBazaar software. We need to hire several programmers to complete various parts of the project.
Good programmers are expensive, and we need good programmers. We're close to releasing OmniCoin and OmniBazaar, but there is still some programming left to do. Reaching our goal here in the crowd-funding phase will allow us to complete the release versions of OmniCoin and the marketplace software. That will help us raise the rest of the money to make the marketplace successful. It will also show potential equity investors that we have community interest and user support.
(If you are a "rock-star" programmer, and believe OmniCoin and OmniBazaar are exciting, please contact us. You might be able to help us revolutionize the way e-commerce is done.)
- We are a "lean" start-up with minimal over-head and expenses.
- We are moving fast and practice efficient "agile" software development.
- Funds we raise will be placed in a multi-signature Bitcoin address, publicly viewable on the blockchain, for administrative transparency.
- We will communicate our progress and listen to our backers.
- Contribute money to the development of the OmniBazaar software.
- Donate to help us build a new type of free market economy.
- Give to help us promote the "grass-root" usage of Bitcoin by ordinary people.
- Support our crusade for a sane, sustainable financial system.
- Fund us to show your support for marketplace privacy.
In other word, please make at least a small donation and sign up for our newsletter.
Spread the Word
Accredited Investors (You know who you are.)
OmniCoins are digital tokens that will be used by buyers and sellers in the OmniBazaar marketplace. They have no "par value", and will never represent any ownership, voting rights, control, or dividends in OmniBazaar Inc., the OmniBazaar marketplace, or any other asset. At the time of launch, and for many months thereafter, OmniCoins will be given away free to users of the OmniBazaar marketplace. OmniCoins as "perks" cannot, therefore, be considered a "financial incentive". The financial value of OmniCoins will be essentially zero, and might never increase. Any value that OmniCoins do eventually develop will be based on their usefulness, and the confidence people have that they can use OmniCoins to purchase goods and services in the OmniBazaar marketplace. If you choose to receive OmniCoins as your "perk" in this crowd-funding campaign, you acknowledge that you understand you are making a donation, not an investment. OmniCoins may never be more than a "token" of our appreciation for your support.
Risks and challenges
The OmniBazaar software is at the prototype stage of development. The images on this page are actual screen shots from the functioning version of the prototype. OmniCoin is still under development. The images on this page are actual screen shots of the wallet, but that wallet is not yet completely functional.
OmniBazaar Inc. has been developing OmniBazaar and OmniCoin for over a year. We are building OmniBazaar and OmniCoin using technology and algorithms that have already been proven to work. We have a team of talented developers, each of whom is an expert in his field. We are therefore confident in our ability to complete the project as it has been described here.
The following tasks remain to complete OmniBazaar and OmniCoin:
- Test and debug the OmniCoin multi-signature distributed escrow system. (Done.)
- Test and debug the OmniBazaar/OmniCoin distributed user reputation system. (Done.)
- Create “lite” clients for Windows, OSX, Linux Android, and iPhone. (Windows, OSX and Linux Lite client completed.)
- Compile full-node executables for Linux and OSX. (Done)
- Test and debug “OmniMail” secure communication module. (Done.)
- Increase scalability of the OmniBazaar distributed database. (Done.)
- Design and program the OmniCoin initial coin distribution system. (Done.)
- Our software design, engineering, and test processes are rigorous and focused on producing high quality, well tested products. As we move towards final integration and testing of OmniBazaar and OmniCoin, we may learn that additional revision is needed to meet our quality standards. This may delay the delivery schedule.
- The remaining tasks may take longer than expected to complete.
- The rate at which we are able to complete the remaining tasks to launch OmniBazaar and OmniCoin will be determined to a considerable extent by the success of this IndieGoGo campaign. Meeting or exceeding our goal will allow us to launch more quickly.