OpenBazaar backer, OB1, has disclosed that approximately $5 million has been raised in a series A round with the lead investors being Bitmain Technologies, a Chinese cryptomining giant, and Omers Ventures, a venture capital firm based in Canada. Other investors who participated in the round included renowned Silicon Valley venture capitalist, Marc Andreessen, Digital Currency Group, William Mougayar, Blueyard Capital as well as Union Square Ventures. Before this round OpenBazaar had raised around $4 million in other fundraising efforts.
According to OB1 the funds will be used to assist in the expansion efforts of OpenBazaar in order to allow users flexibility when buying and selling goods via a decentralized manner. In 2018 one of the goals of the development team at OB1 is to release OpenBazaar?s mobile version. Currently the 2.0 client software of OpenBazaar is available for Linux, MacOS and Windows operating systems. The development team is also planning on coming up with new innovations for peer-to-peer trading.
New virtual currencies integration
Mid last month OpenBazaar announced the integration of new virtual currencies for the purchase of goods. This was after the high fees associated with Bitcoin (BTC) became prohibitive for most users. The new cryptocurrencies that were introduced include Litecoin (LTC), Zcash (ZED) and Bitcoin Cash (BCH).
Besides the integration with new coins the chief executive officer of OpenBazaar, Brian Hoffman, indicated that the superfast overlay system of payments for Bitcoin, Lightning, was also being considered.
As a decentralized system some of the challenges OpenBazaar has faced include incentivizing users to act in a certain desired manner. One of the ways OpenBazaar is dealing with this is applying a reputation system. In this regard OpenBazaar has invested in a project known as ?Trust is Risk? that involves the creation of a trust network. OpenBazaar is also trying out tokens and this has proved more pragmatic considering that decentralized systems do not possess search engines similar to centralized businesses.
So far according to OpenBazaar, more than 40,000 nodes have signed on the network of its decentralized marketplace. OpenBazaar is also planning on introducing the trading of virtual currencies on its platform.
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