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I haven't heard about m-of-n transactions until now, but the way I understood it is that you do broadcast a transaction transferring the money to an account con
by dullcrisp 13y ago
I haven't heard about m-of-n transactions until now, but the way I understood it is that you do broadcast a transaction transferring the money to an account controlled by 2-of-3 people. So no one can then spend the money until two of the three people - the buyer, the seller, and the arbitrator - agree on what to do with it.
- bunderbunder 13y agoDoes that create another way for money to just disappear? What happens if 2 people disagree and the other takes a flight to Conventry for whatever reason?
- dullcrisp 13y agoYeah, it's important to have an arbitrator whom both parties trust to fulfill their obligation (such as a major bank, to borrow the article's example). Otherwise, the arbitrator could also just offer to split the money with one of the parties if the deal goes sour.
- meowface 13y agoThen the funds are locked until an agreement is settled. Funds could possibly become permanently frozen in such an event. That's likely the one major downside of this system.