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this post was submitted on 27 Aug 2023
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Decentralized marketplace will just look like Craigslist and Facebook and other classified marketplaces; chock full of spam and scams.
Adding some element of democracy (like voting on posts) could maybe improve both those marketplace sites.
I think it would improve any site really. Imagine how much better Instagram or Facebook would be if one could downvote stupid shit and the posters would see what people actually thought about their posts/comments. But that might lead to sads, and therefore less active users, so they won't allow it.
Democracy is pretty cool though imo.
This is kind of like what happens internally on platforms for 3rd party sellers like eBay, Amazon, and AliExpress. Even decades later they're still working the kinks out obviously. Amazon and AliExpress particularly have lots of scammers, so they clearly haven't figured out the secret sauce yet. They're not under-resourced, so either they're under-motivated to weed it out or it's actually pretty tricky to do.
My guess is it's both, but more that it's just tricky to implement a reliable system of reputation and trust. EBay and Amazon got around it early on by being cheap and establishing policies that heavily favored buyers in disputes, which made the prospect of using the service less risky to the public, improving their market shares. They probably also have non-trasparent systems for tracking buyer reputations as well to avoid abuse.
It seems to be the norm to keep these systems obscure to avoid abuse, but to make a truly functional open platform you would need to have public systems, so I'd hope that the norm of obfuscation is out of convenience or laziness and isn't required to make the system function.
When money is on the line, I promise you it will be gamed.
There is a guy who interviewed me for a freelance gig, who generates new dropship e-commerce sites a day, for the past few years. He has over 2000 sites. He wanted help creating bots to have conversations and pump his sites on social media.
He was going to pay me well. But the skillset required was out of my expertise.
The Federation would provide a great tool of figuring out the best way to build trust. A reputable server will only let people join if they are in some way reputable. Servers that let scammers flourish will become defederated. If course servers have to be comparable in size. If there's one server with 90% of users it doesn't work that well.