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> The payment is made to the multisig address and not released to the seller until the buyer is satisfied. If there are any problems with the sale, the buyer an
by DerpDerpDerp 13y ago
> The payment is made to the multisig address and not released to the seller until the buyer is satisfied. If there are any problems with the sale, the buyer and the arbitrator could together send the money back from the multisig address to the buyer. You aren't exactly reversing the original transaction, you're creating another transaction that reverses the effect of the original one.
So it's just more secure escrow?
- nadaviv 13y agoIt doesn't really fall under the definition of an escrow: a bond, deed, or other document kept in the custody of a third party and taking effect only when a specified condition has been fulfilled. [usually as modifier] a deposit or fund held in trust or as a security The arbitrator gets "voting power" in regards to deciding where the funds goes, he doesn't keep it in his custody nor he have full control over it. What Bitcoin allows to do is really unique, and was never possible before. When the money is in a multisig address, it isn't really "owned" by anyone. Edit: perhaps you could say that its owned collectively by the Bitcoin network, that can decide to allow moving it elsewhere if a transaction that fulfills the Bitcoin rules is received. Under that definition, one could say that the funds are in an escrow controlled by the Bitcoin network as a whole.
- deleted 13y ago[deleted]