An alternative solution to requiring a 3rd party escrow is to use the concept of "mutually assured destruction". The general idea is that each party deposits tw

An alternative solution to requiring a 3rd party escrow is to use the concept of "mutually assured destruction". The general idea is that each party deposits twice the value into a shared 2-of-2 multisig wallet. Then, two transactions are generated: 1 for completing the purchase, and one for completing a refund. Both parties need to sign one of the transactions, or all their funds remain locked up, so there is an incentive to cooperate and come to an agreement without needing a 3rd party involved. It isn't perfect, because there are other drawbacks such as needing a large amount of money up front, but it is a trustless alternative. This page explains it better: http://nashx.com/HowItWorks http://nashx.com/HowItWorks