A distributed database of asks/bids. An ask or bid offer is created, signed, and communicated into a telehash network.

Clients can subscribe to a telehash channel and receive new offer information. Some service perhaps to catch them up on old information.

Another service to take query requests for those who dont want to run a client that receives offer information.

basic distinction: are the offer records(DNS) distributed or the search requests(gnutella)? far less traffic in distributing the offer records than distributing the search queries.

One party visits ES home page to define a deal. (Deal State: Defining)
The party provides: BTC amount description, USD amount description, Time limit.
ES provides: deal ID/url. (Deal State: Confirming)

Party A communicates deal ID/url to party B. (ok if this happens later on)

Party A visits ES deal url.
Party A confirms amounts by providing A's dwolla receiving address
ES provides: ES's bitcoin receiving address

Party B visits ES deal url.
Party B confirms amounts by providing B's bitcoin receiving address.
ES provides: ES's dwolla receiving address.

ES waits to receive BTC and USD. (Deal State: Collection)

Client A sends BTC through bitcoin client.
Client B sends USD through dwolla.

(Deal State: Dispursement) ES skims a transaction fee from BTC and/or USD.
ES sends remaining amount of BTC to client B and USD to client A.

ES deal URL shows history of the deal.