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What if the loser refuses to pay? How does the arbitrator get the coins without holding coins?
by brador 13y ago
What if the loser refuses to pay? How does the arbitrator get the coins without holding coins?
- dispense 13y agoThere is no such thing. In a 2 out of 3 transaction, 2 out of 3 parties have to agree for the transaction to happen. Thus, if the winner agrees and the arbitrator also agrees, the transactions is conducted. It's a cryptographically secure agreement.
- brador 13y agoWhat if the arbitrator is colluding with the loser?
- yummyfajitas 13y agoThis problem is not solved via 2of3 transactions. It can be partially mitigated by requiring multiple arbitrators (e.g. a 4/5 transaction with 3 hopefluly independent arbitrators).
- dllthomas 13y agoUnfortunately, there's no really good way of establishing that two pseudonyms are not held by the same person, in a decentralized system. Doubly so when legal enforcement isn't available. Of course abuse is harder the more arbitrators you incorporate, but expense and difficulty are higher as well.
- dispense 13y agoThat's a human problem, not a Bitcoin problem.