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Interesting idea! I only had a quick look around the website but still have a couple questions:

1.How does the poster verify a solution?

2.If verification involves looking at the code, what's stopping the poster from just copying the code?

If the bounty poster requests code, they would verify it by running that code on their own. Most bounty creators are programmers themselves, so that is not a big issue for most users. Non-technical users have posted bounties as well, but they generally request deliverables that are easy to verify, such as complete html pages or website widgets they can drop into an existing page.

An unscrupulous bounty creator could indeed steal a working solution and post it as their own. However, any attempt would be quite obvious, as there is a "Timeline" for each Bounty that shows every revision of every solution in the order it was created. In practice, there have been no disputes or stolen solutions on the site thus far.

Hope that answered your questions!

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