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How does zero-trust escrow work? Seems like this would have a very limited set of applications without an external source of truth.
by ryanlol 5y ago
How does zero-trust escrow work? Seems like this would have a very limited set of applications without an external source of truth.
- Raed667 5y agoI don't remember the details since it was a few years ago that I came across this, but I think the idea was that both buyer and seller could signal to the smart-contract that they're satisfied and that the withdrawal can happen. Otherwise, there is also the concept of "oracles" [0] which are able to look outside the blockchain for information (think weather API, or a city's ledger) that could be your "external source of truth" [0] https://ethereum.org/en/developers/docs/oracles/ https://ethereum.org/en/developers/docs/oracles/
- ryanlol 5y agoWithout any arbitration mechanism this kind of escrow seems fairly useless. The buyer always loses to a malicious seller who is now able to keep the funds locked up forever. Oracles can’t really be trustless.