BitBay allows you to create contracts where you can buy, sell, or exchange whatever you want. BAY is the built-in currency, and is required for all contracts, but not only for payments as you might automatically think. BAY is used for a much more important reason than just purchasing; it is also used as collateral to assure all parties complete a deal.
Here is an example of a possible contract. Let’s say I have $10 in Nexus (NXS) available, and want to sell it for $10 in BitBay (BAY). I, as the seller, am willing to put a $10 deposit in BAY as collateral, and as part of the contract I will require you to put up $10 in BAY on your side. After you and I satisfactorily complete the transaction, or both agree to cancel it, our BAY deposits are returned. To keep us honest and guarantee follow-through, if one of us refuses to mark it complete, we both lose our $10 in BAY deposits.
Here is a screen shot of the contract I would create in BitBay’s client. Please note, if creating your own contract, all values are in BAY unless you use a $ in front, in which case a conversion in USD is done for you. In this case, since the built-in currency is BAY, I can use $10 as the amount of payment and the amount of BAY will all be handled internally.
In a normal transaction…